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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?


To: KonKilo who wrote (178)5/23/1998 1:24:00 AM
From: agent99  Read Replies (1) | Respond to of 1729
 
Re: "Selling Shareholder" --
>>>>>Would it be considered bearish to have heavy selling of this nature? Or would you need more info to determine?

You'd need to know more information. It would depend on the situation. In some cases it might be negative (especially if the Selling Sharholders have alot of stock for sale), in some positive. In an IPO or secondary offering, insiders often sell a chunk of their stock. That's not necessarily bearish. And sometimes public companies have blocks of stock issued privately that become registered. Those holders may have held it for quite some time with the understanding that the company would register the stock and that's how they would exit. In the short term that's may be a negative as the stock that they sell is absorbed in the market, but longer term the added liquidity might actually cause the stock to trade better.

You really need to know the company and try to get a feeling for how much stock is for sale, the timing of the sale(s) and why the sellers are heading for the exits...