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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (57425)	6/22/2016 9:15:15 AM
From: Micah Lance	Respond to of 78751

I saw this guy's thread on twitter and thought it related well to the insider buys discussion: twitter.com Summed up: "Rational humans recognize what a sunk cost is. Trump, like most developers, is betting that he's not dealing with that kind of human. A lot of [bankers/investors/elderly/middle aged marks] will be moved both by the personal investment and sunk costs and double down.This gives the developer room to do one of three things. (1) Structure for bankruptcy/exit. (2) Turn it around. (3) Keep screwing up." I think it summarizes well what your point is. Sometimes these guys might want to increase demand for their stock, so they buy more like this guy describes in his thread. However, like you said, long sustained open market buys can be a sign of confidence in a company instead of one small buy. The thread is more political and about the donald, so if you are interested in politics it is worth a read. In that paragraph I posted, it does show some good insight into an executive who could be less than trustworthy who want to make a little money while on their way out of a company.