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.

Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: StockMan who wrote (4573)	2/23/1998 11:39:00 AM
From: AK2004	Read Replies (1) \| Respond to of 6843

Stock (man ha-ha-ha-ha) let us examine what intel insiders think of future of intel. To put kindly - not much. Read below: :-)) 02:37pm EST 21-Feb-98 Insider's Research Wire WEEKLY INSIDER ARTICLE - LOOKING DOWN THE ROAD WITH INTEL INSIDERS WEEKLY INSIDER ARTICLE Looking Down the Road With Intel Insiders If you want the inside picture on what's happening in the Middle East, you may do well to consult with insiders at some of the major oil companies doing business in the area. By the same token, those looking for an inside picture of the evolving developments in Asia may do well to observe insider activity in a company such as Intel. After all, with its wide range of business activities, the company is in frequent contact with a majority of the technology-related concerns operating in the region. It would be a logical assumption that Intel, with its many Asian business contacts, would be as close to the pulse of many key economic developments in the region as any other U.S. business concern. Because of this, we have been watching Intel insiders closely, looking for any changes in their behavior that may provide clues to the macro picture affecting the industry. There is no doubt to us that the insider picture at Intel has been changing.and not for the better. Our readers may recall that for the past few years, Intel insiders have been sending subtle, yet bullish, signals with the way they've steadfastly held on to their shares. Our June 17, 1996 issue highlighted the fact that, with the stock at then all-time highs in the $36 area, insider sales were actually at historical low levels. To us, the fact that Intel insiders were holding on to shares provided clues as to their proclivity to accept stock market risk. This picture started to change late last year as evidence mounted that insiders were beginning to sell higher numbers of shares at lower prices. During July through early October for instance, with Intel shares trading between $90 and $100, insiders sold just 142,500 shares. By late October, however, Intel share prices had dropped sharply, trading to as low as $69.25. Insider sales actually increased into this weakness, as six insiders emerged at month-end to sell a total of 685,236 shares at between $80.86 and $84.61 per share. By year-end, Intel shares again tested their lows, trading to as low as $67.38 before rallying back to their current $90 price. On the move off the lows, however, insider selling again surfaced. This time the selling was even heavier, as eight insiders indicated sales totaling 947,164 shares at prices between $75 and $82.50 per share. The tendency for insiders to sell into softening prices is never an encouraging sign. We frequently interpret this to be a signal that something is changing within the company. This is probably not the case, however, with Intel. Given the company's considerable global penetration in a broad cross-section of technology markets, we must infer that, at this time, the emerging insider activity speaks more to the macro environment surrounding the industry than to changing internal dynamics. Much attention has been given to recently reported better- than-expected earnings at companies such as Dell Computer. We can't help but emphasize that some of the reported numbers, albeit impressive, reflect past performance. The insider picture at Intel, however, may carry future implications with regard to the general business climate perceived by company insiders in the quarters ahead. In other words - Nice earnings! Now what are you going to do for shareholders tomorrow?