DJ S&P 500 Headed Back Down To 800, TrimTabs CEO Predicts
05/15/2003
Dow Jones News Services
(Copyright © 2003 Dow Jones & Company, Inc.)
By Tiffany Kary
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The market is about to turn down again, based on trends in corporate offerings, said Charles Biderman, chief executive of TrimTabs.com, a tracker of mutual-fund flows.
Corporate stock sales and convertible issuance are at the highest levels of the year - a sign the market is ready for a pullback, said Biderman in an appearance on CNBC Thursday. He predicts the S&P 500 will head back to at least the 800 level, from around 946 now.
Biderman noted that $8 billion in new offerings will have come out this week, more than any other week since last June. Immediately following the June 2002 rise in corporate issuance, the markets sold off sharply, he added.
"Starting the last week in April, we saw a quadrupling of insider selling," said Biderman.
"As long as individuals keep putting money in, and institutions who think they have missed the rally put money in, companies are going to take it out," he said. "It's very easy for them to print the shares and do an overnight deal," he added.
Biderman said "it might take another week or so before the market sells off."
-Tiffany Kary, Dow Jones Newswires; 201-938-5285; Tiffany.Kary@dowjones.com
(END) Dow Jones Newswires
05-15-03 1620ET
online.wsj.com
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