Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (55245)	6/27/2000 10:25:00 AM
From: pater tenebrarum	Respond to of 116764

RB, nevertheless, insider selling became so intense this year, that it overwhelmed the largest mutual fund inflows in history. and it just keeps going...this is different from the past insofar as the pace has picked up to a never before seen extreme. btw, all indicators that everybody is looking at seem to lose their value...as soon as no-one's looking anymore, the indicator becomes important once again. hb

To: Rarebird who wrote (55245)	6/27/2000 10:27:00 AM
From: Don Lloyd	Respond to of 116764

Rarebird - <<They used to be very concerned about insider sales until a friend of mine who was even more paranoid than them at this 144 jungle told me he gave up caring about insider sales...He asked them why he was looking the other way. After all they had heard about insiders and their sales...they said to him, we went back-far far back-into the filings of the best companies I have ever seen hit the Nasdaq...they were CSCO, AOL(used to be AMER), INTC, QCOM, SUNW, etc...and let us tell you many many years ago all these companies had crossed under the 50% insider threshold and for that reason we stopped investing in them...we sold alongside the insiders that sold...and then we looked at how these companies that were no longer majority controlled by insiders performed over the coming years until today...well-many were up well over 1000%, 2000%, even 3000% from the moment the insiders gave the majority of the company to the public...and with each insider sale the price just kept rising over the years...>> The primary economic purpose of the stock market is to facilitate insider sales, broadly defined. As per Austrian theory, no such thing as intrinsic value exists, and all valuations are subjective, and subject to the law of diminishing marginal utility. This implies that an insider selling to the public at a single given price is perfectly rational as the inside large shareholder will tend to balance his marginal utilities of stock and money by reducing his ownership of the former in exchange for the latter. The public stock buyer is doing the opposite as he reduces his holding of the cash that is burning a hole in his pocket for a new stockholding. Regards, Don