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Technology Stocks : PSFT - 1997 Outlook [closed thread] -- Ignore unavailable to you. Want to Upgrade?

To: Tom Smith who wrote (764)	1/22/1998 1:32:00 PM
From: Rick	Respond to of 940

Tom - Thanks for the information. This is an excellent illustration of the perils of reading into insider selling statistics. Most mature and informed investors are well aware of the spurious relationship between insider selling and stock performance. It is so well known that there is a Wall Street cliche' to support it: "There are many reasons to sell a stock, but only one reason to buy a stock". In other words pay attention to insider buying, but not necessarily insider selling. I do believe that if somebody can demonstrate that an insider is liquidating substantially his/her interest (say 50% or more) in the stock, we have something to pay attention to. But when somebody with a $300 Million position sells $25 Million, this means nothing to me. I think one of the things that happens to all investors (long or short position), is that they develop a hypothesis and look for data to support the hypothesis. The shorts are really grasping for straws to support their hypothesis on PSFT. They will be denied (I think...). The interesting thing to me is that on the surface, just looking at numbers without understanding more about the market for ERP software, PSFT's postion, and the intangibles like how well aligned the employees are to the companies goals, PSFT would appear to be a decent short-sell candidate. But I think that if you are close to the situation, you realize that this company is not even close to it's potential. I would like to invite any of you "shorties" to provide detailed information about any insider that is "bailing out" on this stock. cheers.