Donald, a couple of thoughts...
Insider selling CAN often be a bad sign, but it can also be a good one, at least for this quarterly soon to be released... let me explain.
Since most of the executives in a corporation have intimate knowledge of the company's profitability and earnings, if they sell stock into a "bad" earnings report, they open themselves up to insider trading lawsuits. However, if they know the quarterly is going to come in above expectations, then if they want to sell, they can do so, and after earnings come out, nobody will say "HEY!!! He sold before they blew away earnings and the stock rocketed!!! I'm gonna sue him for stupidity!!"
I saw that you've been on the J. Dessauer thread, check back about 3-4 months ago for the same situation with SHBZ... The CEO sold about 25% of his shares (although it could have been options expiring, or money for a purchase, or something reasonable)... everybody was worried, and then SHBZ beat the estimates handily...
Plus, since I know you're a JD follower, a momentary downdraft shouldn't dissuade you from thinking you made a good choice with SFA... you're in it for the value in 1-2 years, not 1-2 weeks....
Regards,
DWB |
