What to Read from Insider Selling?
By stlplace on Jan 22, 2007 in Stocks
Not too much. From time to time, the insiders of the company, a.k.a, the founders, the senior management, or even the venture capital, decided to sell their stocks in the public market. As ordinary investors I used to be worried about those kinds of events. Until I read Peter Lynch’s book One Up On Wall Street
Last Friday New Oriental revealed that its CEO Yu Minghong and another director will sell a large amount of stocks. It’s no surprise the market reacted negatively. But I am not worried. I bought some more EDU stocks instead. At 33.00 (note its fiscal 2007 first 6 months earning $0.68, and its first quarter is the strongest traditionally), I believe it’s fair priced.
This morning the news came another company Mindray will sell more stocks. I am not worried either. Because in all these cases, the fundamentals of company are intact.
Oceanid | Jan 22, 2007 | Reply
One up on Wall Street? That was a really good book.