Head Lie: CNN Says Insiders On Stock Buying Spree

by | Aug 12, 2011 | Headline News | 73 comments

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    CNN suggests that Insiders (corporate CEOs, officers, and board members) have gone on a stock market shopping spree:

    “Insiders go on buying spree”

    Corporate insiders are rushing to buy shares in their companies, suggesting that they think the recent sell-off in their stocks is overdone.

    “There’s a lot of buying and it’s widespread across all market cap groups and all sectors,” said Ben Silverman, director of research at InsiderScore.com.

    Research firm TrimTabs calculates that insiders have already bought $861 million so far in August, the most since just over $1 billion of insider purchases back in March 2009. That’s significant since it’s the month in which stocks hit their lows during the last recession and started two years of steady gains.

    Source: CNN Money

    It’s not only CNN, but all of the mainstream financial news channels and web sites that are reporting the sudden jump in insider buying. Curiously, none of the reports we read had any data whatsoever on the other side of the story –  “insider selling.” They were touting only the buy side of the data and pointing to this data as a sign that the stock market has bottomed.

    In reality, however, insiders are still selling more than they are buying, as evidenced by the insider seller/buyer ratio below:

    According to the chart above, insiders are still selling at a rate of 4.85 sellers to 1 buyer.

    While we may have reached the lowest buyer/seller ratio of the last two years, the data does not necessarily imply we’ve reached a market bottom, as some analysts would have us believe. Insiders may be buying up their company stock at a faster pace, but looking at the last 12 – 24 months of insider data suggests that insiders have had serious misgivings about the health of their companies, financial markets, and the economy as a whole.

    We’d be curious to know what, if anything, has changed in terms of underlying fundamentals since July (or any month depicted in the chart above) that has changed the overall outlook for our economy and financial markets.

    As tumultuous, volatile and unpredictable as the financial markets are, we would strongly suggest to those of our readers that are considering purchasing stocks to, well, reconsider.

    There’s a reason stocks have collapsed around the world and it has to do with a serious loss of confidence in the strength of the so-called economic “recovery” and governments’ ability to manage this crisis going forward.

    What, exactly, is it that insiders are seeing here, other than short-term profits if the markets bounce?

    We’ve got rising unemployment, record-levels of national debt, and consumer confidence has, by all accounts, completely crashed in the latest report.

    CNN et. al. failed to mention those tidbits in their story, and it makes us wonder why.

    Main Street buyer beware. We might be getting played (again).

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      73 Comments

      1. Bloodyfellow

        Get ready for the big stock market liftoff!

        • Magnix

          Beautiful!

          • Anonymous

            Looks like a CG load shift aft after rotate with ball out of center hammer head stall with too much right foot push followed by compaction into stationary mass followed by lights out and excess fuel burned.

      2. crash and burn

        The U.S. Govt. is proping up the market.If they didnt it would have went into a free fall. Some one once told me not to look at the stock market as an indicator of economic health.

      3. mushroom

        Repeat after me!
        #10 cans, crisp $10 bills
        #10 cans, crisp $10 bills

        If you are putting your
        money into the stock market
        you deserve to loose it.
        Aren’t you following the plan
        yet? The entire country will
        soon having a fire sale, then
        you will be able to buy what
        ever you need!

        Lemmeeseenow, where was I?

        Oh, yea

        #10 cans, crisp $10 bills
        #10 cans, crisp $10 bills

        mushroom

        • Plain Old American

          Hey Mushroom,

          Had a thought all by myself today. Though I’d run it by you for your profound, professional opinion:

          What do you think of adding lottery scratchers in with the crisp $10 bills?

        • eaglescoutprepper

          why $10’s?

          • JustMe

            Because you can get twice as many as you would if you got crisp new $20 bills

        • Apache kid

          mushroom lives up to his name he has been kept in the dark and fed on bullshit.

          • Humpty Dumpty

            A useful idiot!

        • EAGLEDOVE

          Hey MUSHROOM…!!! , should the #10 cans be lined with lead for protection for those valuable $10.00 bills?

      4. VRF

        like i said just the other day

        VRF says:
        August 12, 2011 at 7:16 am There will be another market crash

        thats when it will get ugly real fast

        there are too many players looking for that trillion dollar score

        hackers looking for a quick score or a way to extort or exploit the system

        they look for weakness and go for the throat even for short term gain

        they produce nothing, but can drain an economy in the split second of a bell ring

        • VRF

          Im acctually thinking that when the market crashes..this government and the “Teleprompter in Cheif” will cover it up and prop it up in an effort to “make it all go away”

          wont work

          • Bloodyfellow

            Hey, there sheeple you like rice??? well…none for you!

            • VRF

              lol,rice nazi

              (seinfield..soup nazi)

              No Rice for you!

          • Bloodyfellow

            VRF: man I’m laughing so hard it hurts!!! (seinfield…soup nazi) LMAO 🙂

            • Sam

              sum ting wong ?

          • c

            They have been covering it up and propping it up, since the houseing market dropped back in 2008. That is how this administration operates. Hey it worked to get him elected. Smoke and mirrors and pretty words. It is like a weight loss product commercial. “Buy our product and you will immediately lose weight.” What they don’t tell you is that the weight loss will come from the wallet. And even though everyone knows that you must eat less and move more to lose weight, they still buy the miracle products. This nation bought the “miracle product” that Obama was selling. Now will they do it again?!!?

      5. Bloodyfellow

        It would be a huge understatement to say that there is a little blood in the shark tank! When Shark tank is (FUHK-EN RED!!!)

      6. crash and burn

        how are the unemployment numbers going to look when they lay off 120,000 post office workers or any of the other companies saying that they are letting 1000’s of people go?? its all smoke and mirrors.
        I think mushroom is on to something
        #10 cans,$10.00 bills
        #10 cans,$10.00 bills
        #10 cans,$10.00 bills

        • Bloodyfellow

          I wander how many $10 bills I can stuff up my ass in a cigar tube, so if I end up in a FEMA camp I cay buy some fuhk-en Beer???

          • VRF

            wow dude..bad mental picture..lol

            shitty part of this..No beer in FEMA camp

            • Bloodyfellow

              Guess I’ll just have to opt out then! lol

            • Murt

              No worries… Sniffing cigar tubes will get you the same outcome.

          • Copout

            Check with Bill cocaine snorting Clinton, he is familiar with cigar tubes, I mean that what I’ve heard!

            • Bloodyfellow

              Bill says: (Copout), “You’er right, I used to give ol Monica Cigar tube 101.”

            • Ben Dover

              I heard he kept Castro waiting in the rose garden while “busy’. I wonder if there is any footage of Castro smoking a cigar later that day.

          • Dave

            @Bloodyfellow, does your nickname represent your method of money storage???

            • Bloodyfellow

              Dave: it was all in theory I sure the hell hope not! You can call it a demo to the the sheeple. lol

          • MountainPrepper

            Bad thought, bad thought, bad thought, need to get this image out of my mindless mind! Bad thought, bad thought!

          • Bloodyfellow

            Damn! A strait man makes a butt joke on here and …all of the freaks come out looking to party!!!

            Sorry dudes, you can wipe all that baby gravy off your chins… slip your Birkenstock’s back on, cause I don’t swing that way. Sorry if you all thought that I was leading you on. lol

        • texas Grasshopper

          they are quite a few jobs here in texas for $7:00 – 8:00 dollars per hour …..what ecomony ?

          • JJ

            At least you have those—Ky?? Not so much.

        • Plain Old American

          crisp bills

          Also, your wise advice re: lottery tickets is likwise solicited.

          • Plain Old American

            likewise

        • Warchilds mom

          The unemployment numbers only reflect the number of people recieving unemployment, not the number of people out of work.

      7. Possum

        The MSM is your enemy. The government is your enemy. They are not your political adversary. They are your mortal enemy. They list you as potential terrorists based on misinformation supplied by the SPLC. You need to treat the MSM and the feds accordingly. In case you didn’t know, the entire Black Congressional Congress are members of the Democratic Socialists of America (Marxist). You won’t see that in the MSM. That’s major info. They intentionally hid it from you.

      8. Mr. Blutarsky

        What happens to the stock market if hyper-inflation kicks in? Do stocks keep up with it? If so, it would be prudent to buy right now.

        • Sam

          purely a guess.. but I would “expect” that stocks would tank. People would be pulling money from anywhere they can get it just to buy beans. That said, I don’t think we’re looking at hyper inflation anytime soon. Hyper inflation is a currency crisis and a perception crisis; but I only recall seeing it happen to limited liquidity currencies. When the pound lost reserve status; it did not result in hyper inflation in Britain.. I think because so many other people, businesses and countries had and were still using the pound. I would expect the same thing with the dollar; unless is it supplanted quickly.. then it would cause a perception crisis coupled with a currency crisis. As to the question of buying stocks, I am doing so very carefully.. I started Monday near the end of the day of the 600 point drop.

        • teed off

          The reason MSM is telling you to “insiders” are buying now, is so that you will foolishly throw your money in. I pulled my entire 401k and put it in dollar denominiated “safe” mutual fund. As soon as QE3 kicks off the stock values will drop initially, hit a bottom, then rise. The bottom may be well below the 6,000 we saw a couple of years ago. After the economy is completely destroyed and your dollars are worthless, banks and wealthy people will start investing again buting everything for pennies on the dollar. I mean everything.

      9. Anonymous

        Buffet is buying and his digits are burning a hole in his pocket.

      10. TnAndy

        Insiders have to file reports with the SEC when they buy or sell stock, but those reports aren’t compiled and available for weeks and months. By the time it’s public knowledge, it’s also out of date.

        No way “Insider.com” knows the true story as of this month, at best they only informal polling. I call BS.

      11. egore

        They must have heard that QE 3 is kicking in soon.

        • Plain Old American

          Hopefully they will print enough crisp $10 bills.

          • JustMe

            When QE3 hits you will have to switch to crisp new $20 bills.

        • Gods Creation

          It is now called “reinvestment”. Same song, different title. Watch for the word to become frequently used.

          • Plain Old American

            How stimulating !

      12. grayfoxgreen

        Greetings Everyone!!
        This is little more than a more gruesome(if that possible)replay of the 1929-1930’s stock markets.same volatility,same “insider” trading,same “Goldie Sakeses” manipulations of prices to their customers detriment and the the companies’ profit.The biggest change is the sheer speed that these things are done.Been noted by the SEC that some traders are placing “orders” to inflate and MILLISECONDS later using their computers to cancel said orders which takes the market far longer to respond to.Meanwhile,even with the fastest home system with great algorithms,your hopelessly behind the gun.Add to that when things get “running hot” the smaller orders will be executed last if at all.It happened back in the Seventies,and after all the outcries and SEC “investigations” nothing was done(It didn’t help that the Private Investment Bankers and large Brokerage Houses(See G.S. above)Spent multi-millions to “convince” Congress to tell the keystone cops(read SEC) to back off.”Men of high education and good moral character” were taking care of how the markets were being “handled”,they said.Same was said during the first few months and years of the crash back in 1929-1930.We all know how true those statements were…..
        Best to All
        Stay Low and care for your friends and Family
        GFG

      13. Gods Creation

        The most likely reason is that the insiders have nothing left to sell because they have already dumped everything they can

      14. Dr. Prepper sez

        I thought these Wall Street games were cyclical and have been played for over a century….after all, to these blue-blooded sociopaths the average man’s lifes’ work is but a child’s piggy bank to be looted for a day’s commissions.

        • Lohkai

          True. They only get paid when things “move”. They’re generally making so many “moves” that it doesn’t really effect them if any tank or not. They get theirs regardless.

      15. CCX

        The ONLY speech we should be hearing now !!!
        ‘My Fellow Americans: As you all know, the defeat of the Iraq regime has been completed.
        This morning I gave the order for a complete removal of all American forces from Iraq. This action will be complete within 30 days. It is now time to begin the reckoning.

        Before me, I have two lists. One list contains the names of countries which have stood by our side during the Iraq conflict. This list is short. The United Kingdom, Spain, Bulgaria, Australia, Poland and a few others are listed there.

        The other list contains every one not on the first list. Most of the world’s nations are on that list. My press secretary will be distributing copies of both lists later this evening.

        Let me start by saying that effective immediately, foreign aid to those nations on List 2 ceases indefinitely. The money saved during the first year alone will pretty much pay for the costs of the Iraqi war.
        THEN EVERY YEAR THEREAFTER IT WILL GO TO OUR SOCIAL SECURITY SYSTEM TO BENEFIT AMERICAN CITIZENS –note ‘CITIZENS’ – not ILLEGALS!!.

        The American people are no longer going to pour money into third world Hell holes and watch those government leaders grow fat on corruption.
        Need help with a famine ? Wrestling with an epidemic? Call List 2…

        In the future, together with Congress, I will work to redirect this money toward solving the vexing social problems we still have at home. On that note, a word to terrorist organizations. Screw with us and we will hunt you down and eliminate you and all your friends from the face of the earth.

        I am ordering the immediate severing of diplomatic relations with List 2.. Thanks for all your help, comrades. We are retiring from NATO as well.

        A special note to our neighbors: Canada is on List 2. Since we are likely to be seeing a lot more of each other, you folks might want to try not pissing us off for a change.

        Mexico is also on List 2. Its president and his entire corrupt government really need an attitude adjustment. I will have a couple thousand extra tanks and infantry divisions sitting around. Guess where I am going to put ’em? Yep, border security.

        Immediately, we’ll be drilling for oil in Alaska -which will take care of this country’s oil needs for decades to come. If you’re an environmentalist who opposes this decision, I refer you to List 2 above: pick a country and move there. It is time for America to focus on its own welfare and its own citizens. Some will accuse us of isolationism. I answer them by saying, ‘darn tootin.’

        Nearly a century of trying to help folks live a decent life around the world has only earned us the undying enmity of just about everyone on the planet. It is time to eliminate hunger in America. It is time to eliminate homelessness in America. To the nations on List 1, a final thought. Thank you guys. We owe you and we won’t forget.

        God bless America! Thank you and good night.’

        If you can read this in English, thank a soldier.

        • Eagle eye

          And in that one rant is one half of the reason the rest of the world think it would be a good thing if Amerika disappeared up its own dung funnel and vanished forever. The ignorance of your own countries history and the motivation for its hegemonic ramapge across the planet is truly imbecilic.
          The other half of the reason? All the shit done in your name you do not know about.
          And, CCX, I live in one of the countries on list one, and by my estimate around 85% of my fellow Aussies agree, based on enough survey results to have statistical validity.

      16. Durango Kidd

        MAC: What the pigs are seeing and the reason the pigs went to the trough, is because Uncle Ben promised low rates until 2013. It gives them a long time to ride them up and dump them at their particular tops; whatever that may be.

        So even if the economy and these businesses are shedding jobs, it still increases the bottom line by decreasing expenses. Then apply the applicable multiple. The bottom line then is higher stock prices.

        Get ’em while they’re cheap! 🙂 Gold may be flat without more “news”.

      17. Possum

        This is going to be worse than any depression, ever. During the depression, the currency was still good. Our currency will eventually go the way of the Weimar Mark. Keep in mind that when the dollar finally won’t buy anything, the food stores won’t be open, because they are not set up for barter. The stores will be closed for a period of time. So will the drug stores, etc. You must be prepared. The stores won’t have anything on the shelves to loot. They’ll be empty. Check out pictures of the stores in Zimbabwe when their currency went belly up. Empty shelves. Then they started accepting foreign currency (Euro) and food appeared on the shelves miraculously.

      18. Patriot One

        This is propaganda to sucker the little guy back into the market or to prevent them from cashing out.

        Marc Faber said we would get a bounce last week. I think the bounce is over. The fact remains that countries all over the globe are printing money.

        This is nothing more then a suckers rally. The talking heads are even saying the markets are moving on feelings not fundamentals.

        The French are Fried and next week the numbers will show it. I think we will see more 600 to 800 point swings next week.

        Will we be bailing out Europe via the IMF next week? The signs say we will.

        Move to cash or hard assets folks we are in for more of a wild ride.

      19. Jack C

        I agree with Patriot One. I think the next two weeks are going to be very bad. Most intelligent people know that governments all over the world are printing money to keep the party going. Soon the party will be over and many will have a hangover. Though the focus has been on Europe lately, the US is a millisecond away from the same problems. The only saving grace we have is that China and Japan are reliant on our economy succeeding, unlike Europe. I would not want to be thirty again; the future is not too bright.

      20. Falling-Knife

        The problem is simple, the U S A is over populated. Low I Q’s have the same voting power as intelligent. Poor health care provided to the lower income/welfare citizens will resolve this problem in another generation. Until then, entitlement programs will drain whatever profits are made in Amerika. Now, it is time to arm yourself, keep supplies and medical equipment stored up. Move out to the rural area’s, and remove yourself from the radar, no credit, no income (visible) and no ISP #. When the SHTF, have your cellars safe and supplied, keep Pit Bulls and lot’s of ammo…you will survive to fight another day.

      21. grayfoxgreen

        Greeting Everyone!
        I absolutely agree with Patriot One on this one.I spotted a video about a Congressman grilling the women who had “oversight” at the Fed.Totally clueless on every item he asked her about.Especially the billions in “off the books”loans being made to European Banking centers.She admitted the these existed,but had no clue as to how much or to whom it loaned to.Or where the money loaned out came from.And this is the person charged with keeping track to prevent fraud and corruption out of the Fed.What Chutzpa!!! On a lighter note,a retired trader from ENRON(just before they collapsed) who made a cool BILLION or two,started a “NON-PROFIT”(read pays no taxes of any kind)
        Foundation to “assist and encourage” States and the federal government to force employees to switch over to IRAs.He can’t contact them directly(lose his tax exempt status,he would) so he holds “seminars and think-tank symposiums” to encourage lawmakers to learn how to enact(with the aid of his blueprint law change paper work) changes to the retirements of state and federal employees everywhere.We all know how that idea is working at the moment.He calls himself a Libertarian(what ever that’s suppose to define) and dislikes(he says) both parties.With people like his ILK running around,no wonder the Government does what it does.
        Best to All
        GFG

      22. That Guy

        rule 1- What EVERYBODY on Wallstreet knows is not worth a cent.

        Buy low….sell high
        or
        Sell high..buy low

        Bulls and Bears make money, pigs get slaughtered

        a penny saved is a penny earned

        One makes money when one buys, buy right

        To make money in stock take 2, properly timed, correct decsions, the correctd ecsions on when to buy…and then the correct descion on when to sell.

        Buy stock in dollar position (not number of shares).
        Figure out what you position amount is, a dollar ammount.
        Whne you are thinking of buying, and not sure, but 1/2 a position… if the stock declines for there, buy another 1/4 posioton…and if it falls dirther pick up the last 1/4….this way you are happily buying more shares each time……… of course if you buy and it skyrockets, fine…. makes money. bulls and bears make money, pigs get slaughtered.

        Sometimes it is appropriate, with great quality stock, to budget to buy a double positions in total…. and conversely… for risky quality stocks…. only budget to buy a 1/2 position total.

        Be a contrarian…. but you all know about that part.

        NEVER BUY STOCKS(or ANY freekin investmetn) if you heard the advice originated from a celebrity, they are the worst invsetors in the universe…..

        Never buy/sell based on the cover of a magazine
        Never buy/sell based on the nightly news… see rule 1

      23. cry wolf

        another civil war is coming,GOD help us all!

      24. AZ Ready

        And here I always thought insider trading was illegal!

      25. Possum

        When you think all is lost, look in the mirror. Your ancestors are looking back at you. They survived much, much worse. That’s why we exist. We will survive the globalist, marxist crap and eventually prosper. “Lo there do I see the line of my ancestors”…..”back to the beginning, beckoning me”…..

        • Bloodyfellow

          Well spoken there is a lot of wisdom in what you just said.

      26. Bloodyfellow

        We live in a time where the walls have ears and many are blind.

        Bloodyfellow-

        • Bloodyfellow

          I was (almost!!!)carded today at Walmart when I tried to pay cash for some crossbow arrows. “ID for some arrows …are you kidding me?” (Cashier says) “No it’s store policy to get ID for sporting good equipment now.” (Bloodyfellow said) Well screw that you can freeking keep them!!!… and tell your store manager that I said SO…would you. Have a nice day mam’.

          (ID) for Arrows……WTF!!!!!!!!!!!!!!!!!!!!!!!!!!!!

          • Warchilds mom

            You look like a terrorist to me! Shoot that tank! Lol!

      27. tonyb

        Looks like a “leak” to get all the suckers in before a crash. I can’t imagine why anyone would buy stock unless they’re an insider. Buy silver.

      28. Dave

        I do the exact opposite of what CNN,FOX,NPR & the white attempt to get me to do with their transparent suggestions.

      29. geobro

        follow the gold trail all the gold vanished from the vaults under the twin towers on 9/11. america using fake bars of gold ? all the countries joining the euro had to hand over gold held for bits of paper called euro .brit goverment raiding bank vaults mushrooms selling jewllery 28gs to an ounce when trogen 14gs used .french bloke from IMF being accused by maid when he turned up asking for 192 tonns of gold due beware of shipping containers with nukes folks

      30. Oregon Waves

        I don’t see how “Insiders” could have been driving the turn-around in stock buying last Thursday and Friday. Insiders can’t jump into the market except during brief open trading windows following quarterly earnings releases and SEC filings. For corporate officers who have the big bucks to move the market like that, the company must file an SEC F4.

        I think what really happened last week is that Obama and Geithner pulled together the President’s Working Group On Capital Markets (aka the “Plunge Protection Team” that was formed after the 1987 crash) to prevent a massive sell-off.

        • Plain Old American

          OW
          Just curious. You anywhere near Salem?

      31. Refugee

        Stock values don’t drive trading any more. Over 70% of trades are made by computer algorithms. It’s not investing any more. It’s speed trading and gambling.

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