Insiders sell for a lot of reasons. Only one of them is bad. They only buy for one reason, and that is good. So, while insider selling will have a shortterm adverse affect -- it is not necessarily real bad for long term holders. I sure wish they weren't selling. But, why didn't they sell at 20 in November or 24 in October? Have their feelings changed about the company's prospects since November? Or have their personal needs for this money increased since October? Looks like they all bought new homes -- someone is San Jose can check that out with their real estate agents. They may have paid off their mortgages. Only time will tell for sure. But, Directors still hold a good deal of stock -- they will keep most of it if they feel the company prospects are good. (I believe the entity knew about the announcement in advance). I don't think a Amati director would sell for that reason. The Soros deal? Complicated. I don't know its' affect. If the company is profitable in late 1997, a share will be selling for much more than 25 and none of this will matter then. If you have held on this long and are thinking of selling, then remember that emotions and investing do not mix. I believe that someone (generic, not you) who can't take the volatility of Amati buy something else or at least should time their buys perfectly, and cut their loses at 10% if their timing was wrong. I sometimes repeat the following, when I am tempted to make a decision that I will later be sorry for --
Buy when you want to sell and sell when you want to buy. That is, buy when your emotions say sell, and sell when your emotions say buy. |
