As the "news" on Cisco (CSCO) begins to get more encouraging, I find it interesting (typical) that the insiders are selling into the news.
In recent weeks, Cisco put on a dog and pony show for Wall Street unveiled a new logo and marketing strategy in hopes to get customers to buy. Since January, six analysts have upgraded the stock to either "Buy" or "Outperform". Only one investment firm, Robert W. Baird, downgraded the stock from "Outperform" to "Neutral".
Since I happen to know the Chief Market Strategist at Baird, I would have to agree with their assessment after seeing the recent insider selling at the company.
Even Jim Cramer has gotten into the act as he recommended Cisco on one of his recent Mad Money programs.
My question is simple. If the company is just starting to turn the corner, and analysts (including Cramer) believe the stock is going higher, why are the insiders selling? Why don't they wait a few months after the shares gain 20 or 30 percent ? Could it be that they don't believe it will ?
You be the judge;
CISCO SYSTEMS (CSCO)
CARTER LARRY R (SVP, Office of the President) S 300,000 @21.98= $6,595,500
JUSTICE RICHARD J (SVP, WW Field Operations) S 200,000 @22.00 = $4,400,000
RICHARDSON JAMES (SVP, Commercial Business) S 177,700 @22.00= $3,909,400
JUSTICE RICHARD J (SVP, WW Field Operations) S 300,000 @21.00 = $6,301,500
CHAMBERS JOHN T (President/ CEO) S 906,300 @20.68 = $18,742,284
Oh, by the way, Google insiders must hate their company because the insider selling is outrageous . I would post the trades but I do not think their is enough space on the internet to hold the volume.
CHAMBERS JOHN T (President/ CEO) S 383,276 @20.42 = $7,827,408
Comments (1)
Dear John,
As always thanks for your blog. I'm learning.
In regards to your newsletter, when do you think it will be coming out and what price do you think you'll associate with it?
Thanks again for all your help.
Bill
Posted by bill_s | September 7, 2006 5:41 PM
Posted on September 7, 2006 17:41