Insider Seling IS Pervasive. It is Virtually Unpoliced.
And with TigerSoft YOU Can
Profit from it!
Case Study: Newmont Mining 2006
|| Insider Selling
Insider Selling at NEM - Newmont
On Oct 2, 2006 -
after NEM'S stock had already dropped 15%-20%, Newmont's management announced
what they knew in June, namely that their operations in
Uzbekhistan were being nationalized. And only in early
October did they warn that their production of gold would likely
drop. Tiger's chart of NEM (shown below) easily
lets us see that the stock was under big-money insider selling
pressure in June.
We see this in two ways: the Tiger Accumulation Index was in red
terroritory and the OBV Line showed
aggressive selling. In fact, the OBV Line was making new
12 month lows a week before the stock's support
at 47-48 was broken.
October 2, 2006: headline:
"Uzbek court declares Newmont gold venture bankrupt"
" Newmont, the world's second-largest gold
miner, has run into difficulties in the former Soviet republic
at a time of worsening diplomatic relations
prompted by U.S. condemnation of a government crackdown
on a rebellion in Andizhan a year ago.... In
July, Uzbek authorities seized gold and some of the assets
belonging to Zarafshan-Newmont, the other 50
percent of which is owned by the government of Uzbekistan,
and launched two tax claims for payments it
said were due between 2002 and 2005......NEM CEO said
that they would write off its operations in
Uzbekistan, where the joint venture ran for more than a decade.
"We are finished there. When
I left Uzbekistan in June, I took the last two expatriates with me,"
Murdy told Reuters in an interview last
week.... Newmont's 50 percent share of gold sold by the Uzbek
joint venture last year was 122,700 ounces.
($73 million) ...The company expects equity gold sales between
5.6 million and 5.8 million ounces worldwide in
2006, dropping to between 5.2 million and 5.6 million
ounces next year before recovering in 2008 and
2009 when projects in the United States, Ghana and
Australia reach full
production." This bearish news was
known to the company and insiders in June.
Insiders sold when the
public was buying! NEM's CEO said they had closed the Uzbbek
operations in June!
That was not released to the public broadly
until the stock was near 40! Similarly, the news that production would
be down until 2008.