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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (40737)	6/19/2000 11:22:00 PM
From: Archie Meeties	Read Replies (2) \| Respond to of 42523

OK, let's go to the chalkboard. During Oct. 1987, every insider in corporate America had the opportunity to either buy or sell stocks which has just crashed. Those stocks which were bought consistently outperformed those that were sold, and outperformed the market as well. Those that were sold underperformed the market. The intensity of the buying during this two week time period immediately after the crash (or "single data point" as you call it) is remarkable both in it's volume and in it's accuracy in recognizing undervalued share prices. Those stocks that insiders sold went on to underperform the market by -14.3%. It would have been a bit more reassuring to see similar buying during May, instead of increasing selling. Or should we think of the thousands of corporate insiders who chose not to buy, but sell during the April-May rout as just one data point without meaning?