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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (12355)	11/4/2003 5:51:50 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95420

Insider buying of company stock slows in October Tuesday November 4, 5:30 pm ET By Chelsea Emery biz.yahoo.com NEW YORK, Nov 4 (Reuters) - Corporate big wigs bought just $52 million worth of their own companies' stock in October, a third of the average, in a sign they may be wary about the economic and stock-market recovery, Wall Street traders said on Tuesday. Insiders usually buy about $173 million of stock monthly, according to data compiled by market research group Thomson Financial. But October was the fifth-straight month executives' purchases have fallen below the $100 million mark, Thomson said. Insiders are holding back at the same time the stock market and economy have surged ahead. Blue-chip stocks closed at a 17-month high on Monday and gross domestic product, a measure of economic growth, rose at an annual 7.2 percent rate in the third quarter -- the fastest pace in almost two decades. "The smart money bought early and it isn't chasing (investments) now," said David Briggs, head of global equity trading at investment firm Federated Investors. "The rate of change is slowing and it's going to be more stubborn from here." The stock market's sharp rise and fears that the economy may not be as strong as currently believed is holding insiders back, traders said. "Insiders tend to be the smartest slice of the pie and they're telling you there's no free lunch," said Mike Clark, Credit Suisse First Boston's global head of proprietary trading. "People are extrapolating the growth we've seen over the past year and worrying that it's front ended. We're in a prove-it stage." An insider selling-to-buying ratio climbed to $59 worth of stock sold in October for every $1 bought -- the highest level in at least a decade, said Thomson. A ratio about $20 indicates bearish sentiment. "The selling (of company stocks) is about normal -- right in line with five-year averages," said Lon Gerber, director of insider research for Thomson. "But executives are not buying shares. Maybe it's a valuation concern." In addition, he said, the outlook for the future remains cloudy. "When they have more confidence that this economic recovery will translate to their financials, maybe then they'll step in." Company insider buying is a good indicator of the direction of the stock market's future, Thomson said. The ratio of selling to buying has climbed above $20 on only 14 occasions. Six months later, the Standard & Poor's index (CBOE:^SPX - News) has fallen 10 of the 14 times, according to Thomson's Gerber. "It's a great leading indicator," he said. Actually it's been a long time since I saw much insider buying so I don't know how much credence to lend to this article but with a lower than expected home computer sales forecast maybe these insiders have it right as usual. Lets try to stay on topic everyone as much as possible. I mean if we can figure out a way that taxation issues, or having x number of houses, or x number of dependents, factors into semiconductor equipment sales, or stock prices, then that is on topic. Otherwise it is not on topic so lets just minimize that discussion and take it over to the tax board since I know there are good ones here at SI. If not then please post the discussion elsewhere or at least preface the discussion with an OT! Thank you all for your future discretion. RtS