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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: dougSF30 who wrote (220032)12/11/2006 4:35:17 PM
From: Ali ChenRead Replies (1) | Respond to of 275872
 
"Insiders are net selling, Petz, not buying. That's why that article is so stupid."

Not necessarily. As a matter of fact, there is a simple investment rule - if one of your holdings appreciates and exceeds 20% of your portfolio, you need to diversify.
Ask "Chuck" about this.

- Ali



To: dougSF30 who wrote (220032)12/11/2006 4:49:05 PM
From: PetzRead Replies (1) | Respond to of 275872
 
The article is not stupid, your statement is. When an insider exercises his options and keeps part of the shares, he is increasing his ownership of the company. He is under no obligation to keep even one share.

Ownership of options is not ownership of a company. You can't vote your options.

But the transactions referred to in the article are stock purchased for CASH, which you obviously are ignorant of.

Petz



To: dougSF30 who wrote (220032)12/11/2006 6:41:12 PM
From: jspeedRespond to of 275872
 
Insiders are net selling

That's the wrong way to look at it. When a company's execs get paid in options, they will sell regularly.

Look for anomalies in the buying and selling pattern to see insider sentiment. As you point out, Ruiz selling 110K shares is a big frikin anomaly. On the other hand, so is Topfer and the other directors buying 250K shares.

In spite of HR's big sale the WSJ, Barrons, and various analysts have characterized insiders at AMD as "buying".