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To: Don Green who wrote (1480)	12/5/1997 12:07:00 PM
From: steve goldman	Respond to of 12617

Hey all! Hey Don! Looks like we got back on track. Regarding the quesitons about insider selling: There are two philosophies, one which I bite on more than the other The first: That insiders know their company better than anyone else. They know the growth, what's happening, the good the bad, the stuff someone might never find out about, the writeoffs, the earnings, the interest income, the firing, the hirings, new tech, old tech, etc. So if you see an insider sell, that's a good indication, taken in its own that he thinks the stock is fairly if not overly valued. The Second: This one has two parts. The first is that it would be imprudent for any person to have such a large percentage of their portfolio in one stock, as most insiders do, ie. bill gates, dell, etc. These insiders usually setup a systematic sell program (gates does) so that he can't be accused of unwinding prior to news. As well, for good companies, most insiders know the aftermath of selling before bad news, the lawsuits, the entanglements etc. Actually, in decent companies, where insiders sell before earnings (very close to earnings) I see earnings usually coming in better since you would have to be flat out stupid to just start selling before bad earnings. Insiders might know good earnings are coming and figure they can't be blamed for selling prior to them. Sure they might miss the upside pop (if any, we all know what good earnings have been met with), but such are the downsides of owning xx millions of dell. I usually assume the worst since the majority of times, insider sellings is an indication of a downturn. As well, since many feel this, it becomes a self-fullfilling prophecy. Adios, Steve@yamner.com