Yes, I said steals! This is of course legalized stealing.
Here are a couple of examples how corporate executives, who are given (free lunch) huge amounts of stock, cash out. Sometimes their own company helps to boost the stock price by announcing a stock buyback.
Basically, it is the "Robinhood" theory in reverse. Rob from the poor, and give to the rich. Wall Street gets the little guy to buy while the insiders sell. What a racket!
AIG- American International Group
Stock Buyback Announcement: 3/1/07- $8 Billion- Expanded
Insider Selling:
Insiders Who Sold
SCHREIBER BRIAN T/ 3-7-07 3,500 shares@ $69.45
GREENBERG MAURICE R/ 3-6-07 400,000 shares@ $69.86
STARR INTERNATIONAL CO INC/GREENBERG MAURICE/ 1-4-07 to 3-6-07/ 4,221,710 shares @$69.68-$72.13
This one really makes me sick. Look at the huge amount of stock that these insiders received for practically zero, and look at the huge amounts of money they are making by cashing out. This is legalized stealing.
Even Goldman Sachs is involved in this one.
Insiders get rich by selling stock that the small investor owns individually, or through a mutual fund. This is one of the reasons I like to hold cash and buy big during periods of market termoil.
During a big decline in the markets, you will see insiders opening up their wallets and buy. For the past 9 months, insiders have been selling at a rate of 7 to 1. Until I see termoil, or insider buying, my wallet is sealed shut.
I realize my approach to the markets do not jive with the average investor, but thats okay. The average consumer is also deeply in debt. I have no debt, but that's okay too.
BKC- Burger King Holdings
Insider Selling
PAGLIUCA STEPHEN G (Director) 2-27-2007/ 5,610,168 shares@21.06= $118,178,188/ shares remaining 25,581,677
BCIP TCV, LLC (10% Owner) 2-27-07/5,610,168 shares @21.06 =$118,178,188/ shares remaining 25,581,677
BALSON ANDREW (Director) 2007-02-27/ 5,610,168 shares@ 21.06= $118,178,188 shares remaining 25,581,677
Jones Adrian M (Director) 2007-02-27/ 6,720,000 shares@22.00= $147,840,000 shares remaining 25,601,219
MEHRA SANJEEV K (Director) 2007-02-27/ 6,720,000 shares@22.00= $147,840,000 shares remaining 25,601,219
STONE STREET 2000 LLC/ GOLDMAN SACHS (10% Owner) 2007-02-27/ 6,720,000 shares@ 22.00= $147,840,000 shares remaining 25,601,219
I don't get it, exactly what did these people do to earn these huge amounts of money?
