Mel's been wrong before
via Motley Fool
Insider buying is typically an encouraging sign. If a CEO is willing to fork over real money for real shares, it's seen as a show of confidence. Unfortunately for Karmazin, yesterday's move is actually him just averaging down in his position.
See, Karmazin snapped up 1.5 million shares of Sirius -- at $5.36 apiece -- shortly after he was brought on as CEO in 2004. Two years later, he nibbled at another million shares when the stock was at $6.20. He actually spent more than twice as much in each of those transactions than he invested in Sirius this week. Perhaps more importantly, it shows that Karmazin may be a brilliant radio guy, but he's no Wall Street Nostradamus.