What do you guys make of all this insider trading? A lot of these sales are for options that don't expire anytime soon so, why sell now? Do they think this is as good as it will get? The bottom line is, these people think now is a good time so, why shouldn't we?
Charles LaRocca
SiriusBuzz Founder
Not sure what to make of it. I personally am not ready. I have other things that need to coincide with a sale. In any case I think there is still upside potential. We shall see.Originally Posted by SiriusBuzz
I hear you but, if everyone was running out of a building, I wouldn't just stand there. I think there is more potential upside but, I can't help but feel like I am doing something wrong by not selling.
Charles LaRocca
SiriusBuzz Founder
I think that is a bit of overstatement. I would not say "everyone" is running out of the building ... not even close.
But there is also another analogy. if a whole bunch of lemmings are running towards a cliff ... would you just stand there and watch them or get in the middle of the herd?
I am not worried about the company and the value of the company .... the thing I am more worried about is the whole market dragging it back down. It is getting more difficult to know where to place stops for sure.
In your analogy, some of the top executives at Sirius XM are a bunch of cliff jumping "lemmings."
It might not be "everyone" but, it is a bunch of heavy hitters who are choosing to sell right now.
Charles LaRocca
SiriusBuzz Founder
You are reading too much into what I am saying. ... let me restate:
The analogy was about if an individual should or should not follow what others are doing for the sake of what they are doing without information or in spite of information otherwise available.
While the executives may not be lemmings(who knows we don't know why they are jumping and to where) .... the lemmings are the people that follow them just because they `appear` to be jumping to safety.
You say a "bunch" or heavy hitters. maybe I am misinformed ... can you list the whole "bunch"
Also an answer to this quote
"The bottom line is, these people think now is a good time so, why shouldn't we? "
1. We don't know why! trading on a lack of information is not a good strategy.
2. Do we know they think it is a good time to sell for the sake of share price? Maybe they need to pay bills. Maybe they need to diversify. Maybe it is something totally different. refer to #1
3. I personally don't trade on things I don't know... Now a healthy stop .. that is a different story.
Last edited by airman; 03-01-2012 at 05:14 PM.
Don't take me too seriously, I am trying to keep this lighthearted but, I do think it's a good conversation to have.
Why isn't this selling considered information?
All I am saying is, all the people running out of a building is information in and of itself. Just because you don't smell smoke doesn't mean there isn't a fire.
As I recall, there have been a half dozen in the past couple of weeks... that's a lot. Were are talking about a bunch of Presidents, VP's, and Officers.
Waiting for bad news isn't a good trading strategy either. Unless you have insider information, chances are you aren't going to get in or out at the exact right time. By the time you have bad information, and get the chance to act, half the value of the stock might be gone.
To be clear, I'm not saying this will happen. All I am saying is that it can and does happen all the time.
If it were one or two people, I would tend to agree and we wouldn't be having this conversation but, it's not...
Charles LaRocca
SiriusBuzz Founder
I am starting to wonder if selling is in my immediate future?
Why now? Because Mel was on Mad Money? Last time he was on Mad Money didn't the stock drop like a rock?
Charles LaRocca
SiriusBuzz Founder
Why now? Well for one, it is near its 52 week high. P/E multiple is something like 34. Most analyst price targets are in the $2.50 range; in other words, it's there.
I'm not a buyer / seller type investor, but things are pretty damn good right now. Those 10 cent shares have done wonders for me. Should have bought more lol (to dollar average down the shares I bought at $3.25).
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