Having some time on Sunday morning, I thought I'd point out something rather nice about MS, that is, the move from NAZ to AMEX. I think everyone has already (I hope) noticed the decreased volatility in the share price, characteristic of the more stable auction-based stock. Another point to consider, though, is that listing on the AMEX makes it harder to unload insider shares.'
Volume on the AMEX has a high degree of integrity, and mostly stated volume is actual volume, that is, a trade from a selling investor to a buying investor. On the NASDAQ, except for extremely high-cap stocks, stated volume is generally almost double actual volume. In a stock that is being actively and intentionally manipulated, stated volume can be 5 or 10 times actual volume. This is important, because the number of shares insiders can sell is tied to volume (unless the stock is very thinly traded, in which case an insider can sell 1% of outstanding shares per quarter).
This means that, in effect, the move to AMEX was an announcement that the co. had voluntarily limited the number of shares its insiders can sell. It's a legally binding promise, that the big holders intend not to dump their shares.
I personally find this very comforting. Especially considering the type of "fraud" rumors about the company. To me, this is a strong indicator that the company insiders think that the actual valuation of the stock is solid, and that the long-term future of both the product and the company is bright. |
