Showing posts with label insider selling. Show all posts
Showing posts with label insider selling. Show all posts

Tuesday 10 January 2023

Insider purchases

Insider purchases and sales are noteworthy milestones but no road map to investing success.

You're building a mosaic to decide whether you want to be invested in a company, this is just one piece of the puzzle.

But be careful before you follow in a CEO's footsteps. Knowing how much stock to put into an insider's actions, literally and figuratively, is a tricky business.

The most important aspect that the lay investor should keep in mind is that it is a first screen. Despite that caveat, though, "it's the best one that I know of".

When you see an executive put large sums of money on the line, clearly that's a signal that he feels very confident, but that doesn't necessarily mean that the stock's going to go up.



Some insider buying maybe just simply window dressing or a statement to investors.

It's possible that smaller purchases could be aimed largely at drumming up more buying.

They may hope that the publicity of their having bought will have a positive effect on the direction of the market price.

Sunday 1 January 2023

Insider Buying and Management Stock Options Can Signal Opportunity

Only one reason for insider buying

In their search for complete information on businesses, investors often overlook one very important clue. In most instances no one understands a business and its prospects better than the management. 

Therefore investors should be encouraged when corporate insiders invest their own money alongside that of shareholders by purchasing stock in the open market. 

It is often said on Wall Street that there are many reasons why an insider might sell a stock (need for cash to pay taxes, expenses, etc.), but there is only one reason for buying. 

Investors can track insider buying and selling in any of several specialized publications, such as Vickers Stock Research. 


Management stock-options provide the specific incentive to boost the company's share price

The motivation of corporate management can be a very important force in determining the outcome of an investment. 

Some companies provide incentives for their managements with stock-option plans and related vehicles. 

Usually these plans give management the specific incentive to do what they can to boost the company’s share price. 


Be alert to the motivations of managements at the companies

While management does not control a company’s stock price, it can greatly influence the gap between share price and underlying value and over time can have a significant influence on value itself. 

If the management of a company were compensated based on revenues, total assets, or even net income, it might ignore share price while focusing on those indicators of corporate performance

If, however, management were provided incentives to maximize share price, it would focus its attention differently. 

  • For example, the management of a company whose stock sold at $25 with an underlying value of $50 could almost certainly boost the market price by announcing a spinoff, recapitalization, or asset sale, with the result of narrowing the gap between share price and underlying value. 
  • The repurchase of shares on the open market at $25 would likely give a boost to the share price as well as causing the underlying value of remaining shares to increase above $50. 


Obviously investors need to be alert to the motivations of managements at the companies in which they invest.

Sunday 12 January 2020

Insider Buying and Management Stock Options Can Signal Opportunity

In their search for complete information on businesses, investors often overlook one very important clue. In most instances no one understands a business and its prospects better than the management. Therefore investors should be encouraged when corporate insiders invest their own money alongside that of shareholders by purchasing stock in the open market.

It is often said on Wall Street that there are many reasons why an insider might sell a stock (need for cash to pay taxes, expenses, etc.), but there is only one reason for buying. 

Investors can track insider buying and selling in any of several specialized publications, such as Vickers Stock Research.

The motivation of corporate management can be a very important force in determining the outcome of an investment. 

  • Some companies provide incentives for their managements with stock-option plans and related vehicles.  Usually these plans give management the specific incentive to do what they can to boost the company's share price. 
  • While management does not control a company's stock price, it can greatly influence the gap between share price and underlying value and over time can have a significant influence on value itself. 
  • If the management of a company were compensated based on revenues, total assets, or even net income, it might ignore share price while focusing on those indicators of corporate performance.
  • If, however, management were provided incentives to maximize share price, it would focus its attention differently. 



For example, the management of a company whose stock sold at $25 with an underlying value of $50 could almost certainly boost the market price by announcing a spinoff, recapitalization, or asset sale, with the result of narrowing the gap between share price and underlying value. The repurchase of shares on the open market at $25 would likely give a boost to the share price as well as causing the underlying value of remaining shares to increase above $50.

Obviously investors need to be alert to the motivations of managements at the companies in which they invest.

Monday 9 September 2013

Insiders buying more of their own stock is a bullish signal

There are thousands of reasons for insiders to sell stock, but there's only one reason they'll buy:  They think the stock is going to go up.

After all, insiders know more about their company than outside investors ever could.  If they're buying, there's probably a pretty good reason for it.

Past studies bear this reasoning out.  They show that insider-buying is a bullish signal at both the company-specific and macro-market levels.

Wednesday 22 May 2013

Insiders Selling to lock in their gains during this bull market.

Date Announced  22-May-13  
Changes in Share Holdings
Company Shrs Acquired/ Director/Substantial Shareholder Shrs held
(Disposed) after Changed
ALLIANCE FINANCIAL GROUP BERHAD AFG (909,000)   Employees Provident Fund Board 190,793,140  
81,000  
ALLIANCE FINANCIAL GROUP BERHAD AFG (24,400)   Mitsubishi UFJ Financial Group, Inc ("MUFG") 80,532,807  
ALLIANCE FINANCIAL GROUP BERHAD AFG (3,400)   Mitsubishi UFJ Financial Group, Inc ("MUFG") 80,529,407  
ALLIANCE FINANCIAL GROUP BERHAD AFG (300,000)   Employees Provident Fund Board 191,111,240  
618,100  
ALLIANCE FINANCIAL GROUP BERHAD AFG 2,900   Mitsubishi UFJ Financial Group, Inc ("MUFG") 80,532,307  
AIRASIA BERHAD   AIRASIA 4,000,000   Employees Provident Fund Board 231,549,000  
MALAYSIA AIRPORTS HOLDINGS BERHAD AIRPORT (7,700)   Employees Provident Fund Board 135,171,520  
AL-`AQAR HEALTHCARE REIT ALAQAR 1,311,400   Lembaga Tabung Haji 57,761,356  
AMMB HOLDINGS BERHAD AMBANK (81,100)   Employees Provident Fund Board 331,972,457  
2,928,900  
BENALEC HOLDINGS BERHAD   BENALEC (2,782,000)   Kumpulan Wang Persaraan (Diperbadankan) 53,064,600  
BIMB HOLDINGS BERHAD BIMB 659,000   Employees Provident Fund Board 97,370,700  
BINTULU PORT HOLDINGS BERHAD BIPORT (293,900)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 38,792,300  
BOILERMECH HOLDINGS BERHAD (ACE Market)  BOILERM (668,800)   Leong Yew Cheong 38,877,412  
BURSA MALAYSIA BERHAD BURSA (5,800)   Mitsubishi UFJ Financial Group, Inc. ("MUFG") 27,869,258  
42,400  
CIMB GROUP HOLDINGS BERHAD CIMB (1,354,400)   Employees Provident Fund Board 877,827,032  
1,186,000  
CIMB GROUP HOLDINGS BERHAD CIMB (433,900)   Mitsubishi UFJ Financial Group Inc (MUFG) 794,785,177  
CAPITAMALLS MALAYSIA TRUST CMMT (750,000)   Employees Provident Fund Board 165,943,600  
DIALOG GROUP BERHAD DIALOG 2,500,000   Employees Provident Fund Board 372,190,035  
DIGI.COM BERHAD DIGI (1,014,600)   Employees Provident Fund Board 1,201,738,740  
DOLOMITE CORPORATION BERHAD   DOLMITE 278,970   HUANG JEN SOONG 9,074,073  
DRB-HICOM BERHAD DRBHCOM 500,000   EMPLOYEES PROVIDENT FUND BOARD 146,287,600  
EASTERN & ORIENTAL BERHAD E&O 311,600   CIMB COMMERCE TRUSTEE BERHAD 59,504,000  
EASTERN & ORIENTAL BERHAD E&O 8,351,900   CIMB COMMERCE TRUSTEE BERHAD 67,855,900  
FELDA GLOBAL VENTURES HOLDINGS BERHAD   FGV 342,000   EMPLOYEES PROVIDENT FUND BOARD 299,986,370  
FELDA GLOBAL VENTURES HOLDINGS BERHAD   FGV (105,000)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 253,079,800  
GENTING PLANTATIONS BERHAD GENP (5,000)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 46,545,700  
GENTING PLANTATIONS BERHAD GENP (200,000)   EMPLOYEES PROVIDENT FUND BOARD 116,458,200  
HAP SENG CONSOLIDATED BERHAD   HAPSENG (8,935,100)   Gek Poh (Holdings) Sdn Bhd 1,272,992,880  
HAP SENG CONSOLIDATED BERHAD   HAPSENG (8,935,100)   Hap Seng Insurance Services Sdn Bhd ["HSIS"] 108,481,780  
HONG LEONG BANK BERHAD HLBANK 80,000   Employees Provident Fund Board 260,375,772  
HOCK SENG LEE BERHAD HSL 263,400   Employees Provident Fund Board 56,128,560  
HAP SENG PLANTATIONS HOLDINGS BERHAD HSPLANT (2,916,000)   Gek Poh (Holdings) Sdn Bhd 424,240,000  
HAP SENG PLANTATIONS HOLDINGS BERHAD HSPLANT (2,916,000)   Hap Seng Consolidated Berhad 424,240,000  
ICAPITAL.BIZ BERHAD ICAP 129,200   City of London Investment Management Company Ltd 12,781,900  
IGB CORPORATION BERHAD IGB (175,100)   Employees Provident Fund Board (EPF) 92,544,122  
193,400  
IHH HEALTHCARE BERHAD IHH 1,043,900   Employees Provident Fund Board 530,355,000  
IJM CORPORATION BERHAD IJM (123,300)   Kumpulan Wang Persaraan (Diperbadankan) 102,766,280  
200,000  
IJM CORPORATION BERHAD IJM (500,000)   Employees Provident Fund Board 154,793,489  
100,000  
IJM LAND BERHAD   IJMLAND (174,200)   Employees Provident Fund Board 75,870,300  
KUALA LUMPUR KEPONG BERHAD   KLK 31,500   Employees Provident Fund Board 162,743,138  
MAH SING GROUP BERHAD   MAHSING 175,000   Employees Provident Fund Board ("EPF") 103,001,960  
MAH SING GROUP BERHAD   MAHSING (3,000,000)   Kumpulan Wang Persaraan (Diperbadankan) 57,173,866  
MAH SING GROUP BERHAD   MAHSING (3,100,000)   Kumpulan Wang Persaraan (Diperbadankan) -
MAXIS BERHAD MAXIS 2,019,000   Employees Provident Fund Board ("EPF Board") 478,710,400  
MALAYAN BANKING BERHAD   MAYBANK (5,698,000)   EMPLOYEES PROVIDENT FUND BOARD 874,025,124  
MBM RESOURCES BHD MBMR (500,000)   EMPLOYEES PROVIDENT FUND BOARD 58,401,891  
170,000  
MICROLINK SOLUTIONS BERHAD (ACE Market) MICROLN 3,000   Insas Berhad 7,852,400  
MICROLINK SOLUTIONS BERHAD (ACE Market) MICROLN 3,000   Insas Plaza Sdn Bhd 7,852,400  
MISC BERHAD MISC (34,300)   Employees Provident Fund Board 426,309,958  
MISC BERHAD MISC (811,700)   Employees Provident Fund Board 426,442,158  
MISC BERHAD MISC (97,900)   Employees Provident Fund Board 426,344,258  
MK LAND HOLDINGS BERHAD   MKLAND (8,700,000)   KASI A/L K L PALANIAPPAN 268,134,415  
MNRB HOLDINGS BERHAD MNRB (255,200)   AMANAHRAYA TRUSTEES BERHAD - SKIM AMANAH SAHAM BUMIPUTERA 101,423,000  
METRONIC GLOBAL BERHAD   MTRONIC (8,000,000)   Ling Yew Kong 37,355,000  
NESTLE (MALAYSIA) BERHAD NESTLE (32,200)   Employees Provident Fund Board 23,404,200  
NESTLE (MALAYSIA) BERHAD NESTLE (1,200)   Employees Provident Fund Board 23,403,000  
NESTLE (MALAYSIA) BERHAD NESTLE (5,000)   Employees Provident Fund Board 23,398,000  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Pacific & Orient Berhad 85,356,388  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Chan Thye Seng 85,356,388  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Mah Wing Holdings Sdn Bhd 85,356,388  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Mah Wing Investments Limited 85,356,388  
ORIENTAL HOLDINGS BERHAD ORIENT 2,100   Aberdeen International Fund Managers Limited 46,725,100  
ORIENTAL HOLDINGS BERHAD ORIENT 36,100   Aberdeen International Fund Managers Limited 46,761,200  
ORIENTAL HOLDINGS BERHAD ORIENT 2,100   Aberdeen Asset Management Asia Limited 54,222,700  
ORIENTAL HOLDINGS BERHAD ORIENT 36,100   Aberdeen Asset Management Asia Limited 54,258,800  
ORIENTAL HOLDINGS BERHAD ORIENT 2,100   Aberdeen Asset Management PLC and its subsidiaries 66,145,200  
ORIENTAL HOLDINGS BERHAD ORIENT 36,100   Aberdeen Asset Management PLC and its subsidiaries 66,181,300  
PANASONIC MANUFACTURING MALAYSIA BERHAD PANAMY 2,000   Mitsubishi UFJ Financial Group,Inc ("MUFG") 6,073,000  
PANASONIC MANUFACTURING MALAYSIA BERHAD PANAMY 700   Aberdeen Asset Management PLC and its subsidiaries 8,731,800  
PANASONIC MANUFACTURING MALAYSIA BERHAD PANAMY 2,000   Aberdeen Asset Management PLC and its subsidiaries 8,733,800  
PANTECH GROUP HOLDINGS BERHAD   PANTECH (1,200,000)   GL MANAGEMENT AGENCY SDN BHD 79,895,960  
PANTECH GROUP HOLDINGS BERHAD   PANTECH (1,200,000)   DATO’’ GOH TEOH KEAN 79,895,960  
PANTECH GROUP HOLDINGS BERHAD   PANTECH (1,200,000)   DATIN LEE SOCK KEE 79,895,960  
PARKSON HOLDINGS BERHAD   PARKSON (559,300)   Kumpulan Wang Persaraan (Diperbadankan) ("KWAP") 55,968,954  
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Guoco Group Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuoLine Overseas Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuoLine Capital Assets Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Hong Leong Company (Malaysia) Berhad -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   HL Holdings Sdn. Bhd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Tan Sri Quek Leng Chan -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GLL (Malaysia) Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Pembinaan Sri Jati Sdn. Berhad -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Bedford Development Sdn. Bhd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuocoLand Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuocoLand Assets Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Hong Realty (Private) Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Hong Leong Investment Holdings Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Kwek Holdings Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Kwek Leng Beng -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Davos Investment Holdings Private Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Kwek Leng Kee -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Quek Leng Chye -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuocoLand (Malaysia) Berhad -
PUBLIC BANK BERHAD PBBANK (1,925,900)   Employees Provident Fund Board 461,040,381  
130,000  
PETRONAS CHEMICALS GROUP BERHAD   PCHEM 950,000   Employees Provident Fund Board 1,012,690,800  
PETRA ENERGY BERHAD PENERGY (1,241,000)   Lembaga Tabung Haji 22,299,412  
PERISAI PETROLEUM TEKNOLOGI BHD PERISAI (2,005,200)   EMPLOYEES PROVIDENT FUND BOARD 61,793,000  
PERISAI PETROLEUM TEKNOLOGI BHD PERISAI 1,600,000   EMPLOYEES PROVIDENT FUND BOARD 63,393,000  
PETRONAS DAGANGAN BHD PETDAG (80,000)   Employees Provident Fund Board 73,440,900  
PETRONAS DAGANGAN BHD PETDAG 41,900   Employees Provident Fund Board 73,482,800  
PETRONAS GAS BERHAD PETGAS (44,000)   EMPLOYEES PROVIDENT FUND BOARD 266,966,400  
222,000  
PETRONAS GAS BERHAD PETGAS (150,900)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 104,779,600  
36,900  
POS MALAYSIA BERHAD POS (300,000)   Employees Provident Fund Board 41,467,800  
PRICEWORTH INTERNATIONAL BERHAD   PWORTH (4,500,000)   Lee Kian Vui 9,648,150  
SIME DARBY BERHAD SIME (454,400)   Employees Provident Fund Board 809,389,455  
1,249,800  
SAPURAKENCANA PETROLEUM BERHAD SKPETRO (816,400)   Employees Provident Fund Board 679,584,689  
1,150,000  
SKP RESOURCES BHD SKPRES (9,000,000)   DATO’’ GAN KIM HUAT 525,424,291  
SKP RESOURCES BHD SKPRES (9,000,000)   RENOWN MILLION SDN BHD 175,246,075  
S P SETIA BERHAD SPSETIA 200,000   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 129,158,850  
S P SETIA BERHAD SPSETIA 1,850,000   Employees Provident Fund Board 128,666,230  
S P SETIA BERHAD SPSETIA (671,200)   Mitsubishi UFJ Financial Group, Inc ("MUFG") 133,161,400  
SUNWAY REAL ESTATE INVESTMENT TRUST SUNREIT (845,000)   Employees Provident Fund Board 318,304,300  
250,000  
TASEK CORPORATION BERHAD TASEK 5,000   Mitsubishi UFJ Financial Group, Inc ("MUFG") 14,851,759  
TH PLANTATIONS BERHAD   THPLANT 1,480,200   Employees Provident Fund Board 47,855,400  
TELEKOM MALAYSIA BERHAD TM 249,900   Employees Provident Fund Board 480,700,300  
TOP GLOVE CORPORATION BHD TOPGLOV (809,200)   Kumpulan Wang Persaraan (Diperbadankan) -
TRIPLC BERHAD TRIPLC (6,488,295)   Gempur Likas Sdn Bhd -
TRIPLC BERHAD TRIPLC (6,488,295)   Ho Kim Shing -
TRIPLC BERHAD TRIPLC (6,488,295)   Md Zahary Bin Malek -
TRIPLC BERHAD TRIPLC 4,000,000   Minat Bakti Sdn Bhd 4,000,000  
TRIPLC BERHAD TRIPLC 4,000,000   Aidil Bin Abdul Aziz 4,000,000  
TRIPLC BERHAD TRIPLC 4,000,000   Ruzlan Bin Rahmat 4,000,000  
UNITED MALACCA BERHAD UMCCA 12,800   Aberdeen Asset Management PLC and its subsidiaries ("The Group&qu 29,152,050  
UNITED MALACCA BERHAD UMCCA 7,300   Aberdeen Asset Management Asia Limited 16,112,350  
UNITED MALACCA BERHAD UMCCA 7,300   Aberdeen International Fund Managers Limited 10,912,650  
UNITED MALACCA BERHAD UMCCA 5,500   Aberdeen Asset Management Sdn Bhd 12,989,700  
UNITED MALACCA BERHAD UMCCA 20,600   Mitsubishi UFJ Financial Group, Inc("MUFG") 29,139,250  
UMS-NEIKEN GROUP BERHAD UMSNGB 150,000   Yeo Guik Hiang 4,012,400  
UOA DEVELOPMENT BHD UOADEV 600,000   EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD") 79,828,200  
UNITED PLANTATIONS BERHAD UTDPLT 7,600   MITSUBISHI UFJ FINANCIAL GROUP. INC (MUFG) 24,148,000  
UNITED PLANTATIONS BERHAD UTDPLT 19,800   Aberdeen Asset Management PLC and its Subsidiaries 24,167,800  
WAH SEONG CORPORATION BERHAD WASEONG 83,200   Employees Provident Fund Board 45,142,433  
WCT BERHAD WCT (2,500,000)   Kumpulan Wang Persaraan (DiPerbadankan) 64,933,210  
WCT BERHAD WCT (300,000)   Employees Provident Fund Board 123,708,430  
WHITE HORSE BERHAD WTHORSE    Teo Kim Tay 12,559,015  
WHITE HORSE BERHAD WTHORSE    Teo Kim Lap 12,533,027  
WHITE HORSE BERHAD WTHORSE    Teo Swee Teng 13,498,593  
YTL CORPORATION BERHAD YTL (3,312,300)   EMPLOYEES PROVIDENT FUND BOARD 789,297,047  
YTL POWER INTERNATIONAL BHD YTLPOWR (3,000,000)   EMPLOYEES PROVIDENT FUND BOARD 586,482,916