Insiders still bearish


Just a quick update on the insider sentiments. My friend at Thomson Insider Research says that the Insider sentiment is solidly bearish for the month of March so far. In fact insider selling hit a new high this month.

bq. Corporate executives sold $2.2 billion worth of their own companies’ stocks during the first half of March, slightly below the volume of sales in the month-ago period. Historically, we have tended to see a month-over-month decline in executive sales from February to March, the exceptions being 2002 and 2003 when February distributions were already lighter than usual. At this pace, March selling will most likely not exceed February’s record $5.1 billion. However, March will surely rank as one the higher months for selling in recent years. Month-to-date, the dollar sell-buy indicator – our favorite leading indicator of insider sentiment – continues to remain in “very bearish” territory (historically, above the $20-level) for the eleventh consecutive month. The current reading, $33 sold for each $1 acquired, compares to February’s all-time high bearish reading of $55.

On the upside, Vitesse Semiconductor CFO Eugene Hovanec made the company’s first insider buy (15,000 shares) in nearly five months

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