Don,
"Novell employees are given options as part of their pay so have little incentive to buy in the open market".
Puhleeeeese.
Let me see, so only companies whose employees don't get options are likely to buy in the open market. And which companies would that be? In this day and age.
The logic says that if your stock is cheap, and your options are only exercisable at higher levels you buy common in the marketplace. Even if you have lots of in the money options you buy stock in the open market.
You were read excuse #1, from a list of 10 or more, that IR people look up quickly when asked these questions. I've heard that one a dozen times.
Sellers are A.paying for kids college, B.diversifying their holdings, C.paying for a medical emergency, D.building a house, yada, yada, yada.
Insider buying 101. They buy when it's cheap. they sell when it ain't.
I wouldn't be going to IR people for analysis on a tried and true (and market beating, no less) investment method such as insider buying.
Didn't you choke on the smoke being blown in your face?
I read on another board last week about an insider who sold 50,000 shares in the $7 range. The IR person reported that there were "medical bills". This is from a company that hasn't been able to file their SEC filings as the stock has risen from pennies to $8 on rumor, innuendo, and a small float (most importantly).
I love IR people. Many of them are unsophisticated enough to even believe some of the things they are told to say.
Hope I don't sound mad at you, I just can't believe the BS that people get fed when they call companies looking for information.
Dwight |
