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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: eddieww who wrote (15692)	1/2/2003 1:24:26 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 19219

Purchases by insiders fell 2.1 percent to $2.64 billion, the third year of declines, said Washington Service, a research firm. There have been few big buyers among the Nasdaq issues that have plunged since 2000. I would say there are some statistical anomalies here and interpreting them is subject to debate. "Few big buyers" in the naz probably means on a $ basis there aren't too many more Bernie Ebbers out there buying $200mm of their own company stock on margin anymore. With share prices 1/50 what they were, you would expect the dollar amt to decline- after all these individuals wealth effect has been wiped out more than most. There is a school of thought that says that since Ray Lane sold a hundred million in misc. stock in the 90s, his 10mm purchase of sbyn in 2001 is insignificant. Bill Joy and his Sun buy, the LSI people, David Ritchie of amcc... all of them sold more stock then than they are buying now. Of course what this doesn't say is how much of that sold money is now lost from investments in other stocks and (the worst of all) VC series. For those that see things that way, my guess is insider buying never reaches the levels it was in the late 90s for a few select "big buyers". I find insiders will buy in round lots, say 100K shares or 50K shares. If the stock price declines by 80% they don't necessarily up their buy to 500K shares- thats too much of the float anyway. I think this report would be more useful to me if it broke out naz vs. nyse anyway. The NYSE stocks are fairly valued in many cases and not suffering the complete devastation of the naz. I can only vouch for insider buying in the naz. Most of this money is LT investment money so who knows if they got the absolute bottom. VTSS is a company with significant insider buying still going on fwiw. L