Tiger Software Blog

           
    
INSIDER SELLING IS EASY TO SPOT WITH TIGERSOFT. 
                          DON'T INVEST WITHOUT IT. 
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                                                          Originally written August 3, 2007  

                
         The Shame of Insider Selling  
                                      
        RAMPANT INSIDER SELLING BEFORE
                                       BIG DECLINES IN THEIR STOCKS  PROVES THAT
                                       BANKING EXECS KNEW THAT THEY HAD BUILT
                                       OVER-LEVERAGED HOUSES OF CARDS TO SHORE
                                       UP THEIR BONUSES AT EXPENSE OF SHAREHOLDERS..
 
  
                                                     More materials added on 7/4/2009 

                                            
BANKING EXECS, LIKE RATS,
                          FLEE THEIR SINKING SHIPS.

        
                                         
THEIR PERSONAL GREED AND
                                                     FRAUD WAS NEVER CLEARER.

                                                     BANK EXECS ARE CERTAINLY NOT VALIANT
                                                     CAPTAINS WHO GO DOWN WITH THEIR SHIP.


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     AHM Files for Bankruptcy.    SEC Token Penalty on RYL Executive.  

                                  "Donald, You're Fired!"   Insider Trading at TRMP - Trump Casinos
                                               DONALD KNEW TRMP WOULD GO BANKRUPT!

                                 BAC Execs Sell Millions above $40 and Buy BAC Back under $5.


                                            
   By  William Schmidt, Ph.D.  - Tiger Software's Creator
                                                           (C) 2007,-20099 William Schmidt, Ph. D.  - All Rights Reserved. 

                        No reproductions of this blog or quoting from it without explicit written consent by its author is permitted.                                                                                       
Back to Home Page - www.tigersoft.com

________________________________

     
                                       
HALL OF INSIDER SHAME

     
             Insider Selling just before Their Stocks Crash

                             Unlike Captains of A Ship, These Companies Dumped Their Shares
                              onto The General Public At Top Prices.

                                                      (c) 2007 William Schmidt, Ph.D.

            The largely useless SEC prosecuted none of the insiders in the stocks below who sold
            shares to members of the public at the top.  The public thought they were getting a bargain!
            They were getting screwed!  Over and over, this is the way Distribution from Insiders to the
            public takes place.

            Just as Bush, Paulson, Obama and Geithner have stolen nearly a trillion dollars from American
            taz payers and given the money to monopoly mega banks on terms you and I would love to be able
            to borrow money at, so too, the transfer of wealth from the middle class to the very
            rich takes place because Wall Street goes almost totally unregulated. 

            Insider Selling at the top in 2007 and continuing throughout 2008 was rampant.  Insiders
            sold stocks to members of the public in collosal amounts.  They knew their shares were
            worthless and going to drop.  They knew the bursting of the housing bubble would bring
            down their over-leveraged shell companies.  These insiders wanted out while they still
            could sell.  This should be a high crime.  Instead,  in the US the millionaires and billionaires
            who did this are given a FREE PASS by Obama, who assures us without a thorough public
            investigation that these insiders committed no crimes.  These insiders are no different than
            Bernie Madoff, who got 150 years for his crime.  Why is this not a capital crime?  How
            many lives did they knowingly destroy by their fraud, lies and greed?  

            Yes, I rant and rave.   Americans should be furious.  But the cover-up by the corporate media
            and most politicians keeps them in the dark.  The public blame themselves, because they have
            lost money in the market or lost their jobs.  They are not at fault.  It is the super rich and
            their politcal cronies, like Obama who masquerades as a reformer.  At least, Bush never
            pretended to represent the average worker.

            The only chance a member of the public has in fighting these callous, selfish monsters is to
            use TigerSoft and Sell when the insiders do and Buy when they do.  Don't expect Obama to
            fix things.  His economic advisors are bought and paid for by the very crooks that have caused
            the current financial calamity.  His largest corporate campaign contributor was Goldman Sachs,
            the grand master of financial bubbles and insider influence.
         

       
Insider Selling before A Big Decline

        Recent Examples of Insider Inspired Big Money Selling, from a TigerSoft perspective.
    
                             
AHP  AHM   BAC (see below)    C     CC    COLY     CTX 
                     GM    HOV     IDIX      JRC   JRT     LEND 
  MTH 
                         PHM   RDN     RMBS   RYL (see below)   TRMP    WM         WMG


     .Many more will be added.  If you owned these shares, have your lawyer contact us.
                      858-273-5900.    We now offer expert witness services. 
     TigerSoft can show you whether your stocks are under heavy
      insider-informed selling. 


                  There are many, many cases.  RYL has a history of insider trading ahead of bad news.
              Note the very red reading from our Accumulation Index.  This shows big-money distribution.  
              Insiders are alledged to have informed the sellers of the troubles to come.

                 Insider trading in the narrowest, legal sense usually refers to what the company's directors
              and bosses are required to register.  But, the reality is that there are many insider-informed
              indivudals and funds that get to act on non-public information.  They learn that earnings will be
              declining months, very often, before the news actually comes out.  As Tiger users, we see this
              technically in the way the stock fails to go up in a rising market, shows steady and heavy red
              distributioon from our Tiger Accumulation Index (S12), forms top patterns (like head and shoulders
              tops), breaks support (S10) and then falls sharply as the bad news comes out.  See our book
              on Short Selling.

               AHM - American Home Financial is a stock to study. It just filed for bankruptcy.  See the
               red down days on its chart below This represents big-money dumping.  They got wind from insiders
               how bad thngs were with the company.  This was a very bullish market environment.   But they
               could not sell fast enough.  They dumped shares and then sold some more.

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                 We will start posting the charts of those companies that show such a pattern.  See the details
             of what we look for in the cases of RDN and LEND.  

                         "The Shame of Insider Selling"
                     Rampant Insider-Inspired Selling before a Big Decline:

                CC  COLY CTX  HOV  IDIX   JRC  JRT   LEND MTH  PHM  RDN  RMBS  TRMP (see below)
                WMG  Many more will be added.

                   wpe3.jpg (2978 bytes)               wpe2.jpg (2735 bytes)                  wpe4.jpg (2697 bytes)      

                                     "Donald, You're Fired"              
               TRMP.GIF (31264 bytes)

              
               .Many more will be added.  If you owned these shares, have your lawyer contact us. 858-273-5900
                TigerSoft can show you whether your stocks are under heavy insider-informed selling. 

                                           Insider Trading Is Rampant                            
                        Here are comments by David Weidner, MarketWatch, Apr 5, 2007
               "The share price of the regional bank at one point topped $66, more than $5 above its already record high.
                By the end of the day shares were up 7.4% to an adjusted close of $65.96. Compass CBSS
                volume of 3.9 million shares - eight times its recent daily volume.  Wire reports in the U.S. said money managers
                and traders were "hearing" that the company was about to be sold. Sure enough, the next day Compass
                announced it accepted a $9.6 billion buyout from Spain's Banco Bilbao Vizcaya Argentaria.
                The trading at Compass in mid February underscores an obvious truth on Wall Street. In the world
                 of mergers and acquisitions there are two kinds of people: Those who know and us.

                "The effectiveness of such measures is on par with our ability to keep investors from hedge funds,
                 John Thain from buying a stock market, Goldman Sachs out of a deal or putting Frank Quattrone
                 in jail. Insider trading is rampant on Wall Street -- either rampant or some people have an odds-defying
                 ability to guess when hidden deal talks will come to fruition.

                 "Christopher Cox now has an opportunity to silence some of the commission's critics and come down
                  hard on a practice that deserves the investing public's outrage. Last week the Securities and Exchange
                  Commission chairman told a congressional committee that such trading was an emerging threat to the
                  capital markets. He's wrong. It's more than a threat. It happens, deal after deal...

                 "Insider trades come in all forms. Former Quest Communications International Inc. Chief Executive
                  Joseph Nacchio is accused in federal court of using a pre-determined stock sale plan to forward an
                  insider-trading agenda. These seemingly immune-to- influence pre-determined plans have one catch:
                  executives have a say in how they are created.
   (Source: http://www.marketwatch.com/news/story/sec-must-crackdown-insider-trading/story.aspx?guid=%7BC001EE44-7C0C-4FC4-8B19-3F4FF618E223%7D )
                 
                      Spikes of Suspicious Volume Appear in 41% of Cases of Buy Outs
   (Source: http://www.professorbainbridge.com/2006/09/insider_trading_1.html      )        

    Brookings Institute looks at "Enronitis"
                   http://www.brookings.edu/printme.wbs?page=/comm/policybriefs/pb118.htm

Insider trading charges haunt Ryland

    wpe1.jpg (65428 bytes)   Early in 2005,the SEC did what it rarely does.
     It brought charges of insider trading against executoves at Ryland.  This
     was a token effort by the SEC's part.   A comparatively small fine was
     paid and no admission of guilt was required.   The stock quickly recovered

    Los Angeles Business Journal,  March 7, 2005  by Andy Fixmer,  Kate Berry
     "
Last week, a Ryland division president in Dallas, John Hutchinson, agreed to settle
      insider trading charges brought by the Securities and Exchange Commission, after
      he sold shares in January 2004--just days before Ryland announced a sharp decline
      in new home orders, with the biggest drop in Texas.  The SEC accused Hutchinson
      of using non-public information to avoid a $100,000 loss when the shares  subsequently
      dropped 12.2 percent. In the settlement, Hutchinson agreed to pay $205,000 without
      a dmitting or denying guilt."

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  INSIDER RUSH TO DUMP RYL IN 2007-2008
    The CEO of RYL was one of the highest compensated CEOs, receiving $56.47 million
over the 5-year period ending in 2007.
  Vastly over-paid, he lost his shareholders 70% of
the value of their stock, between 2005 amd 2009.  Not one to go down with his own ship,
RYL CEO, Dreier Chad, sold $13 million of RYL before the collaspe of his company's
stock..


RYL07.BMP (1092054 bytes)
                  Insiders DO Always Know First! 
     Look at the official record if insider selling in 2007 and 2008 before the
     stock really declined in earnest.  As might be expected, there was massive
     insider selling.   http://finance.yahoo.com/q/it?s=RYL    Data before July 2007
    was not quickly available on 7/4/2009.  The pattern of selling is clear.  The
    CEO, Dreier Chad sold $13 million worth of stock at prices far above where
    the stock is now.

27-Jul-07 DREIER R CHAD
Officer
80,000 Direct Sale at $33.47 - $33.47 per share. $2,678,0002
3-Aug-07 VARELLO PAUL J
Director
5,569 Indirect Sale at $34.79 - $34.79 per share. $194,0002
8-Aug-07 GENDELL JEFFREY L ET AL
Beneficial Owner (10% or more)
106,800 Indirect Sale at $38.98 - $38.98 per share. $4,163,000
8-Aug-07 GENDELL JEFFREY L ET AL
Beneficial Owner (10% or more)
5,000 Direct Sale at $38.97 - $38.97 per share. $195,000
9-Aug-07 GENDELL JEFFREY L ET AL
Beneficial Owner (10% or more)
61,362 Indirect Sale at $38.84 - $38.84 per share. $2,383,000
9-Aug-07 GECKLE TIMOTHY J
Officer
20,000 Direct Sale at $38.09 - $38.09 per share. $762,000
29-Aug-07 GENDELL JEFFREY L ET AL
Other
214,000 Indirect Sale at $28.68 - $28.68 per share. $6,138,000
29-Aug-07 GENDELL JEFFREY L ET AL
Other
50,000 Direct Sale at $28.68 - $28.68 per share. $1,434,000
30-Aug-07 GENDELL JEFFREY L ET AL
Other
43,000 Direct Sale at $28.08 - $28.08 per share. $1,207,000
26-Oct-07 DREIER R CHAD
Officer
80,000 Direct Sale at $28.01 per share. $2,240,800
15-Nov-07 GECKLE TIMOTHY J
Officer
25,000 Direct Sale at $26.47 per share. $661,750
15-Nov-07 GECKLE TIMOTHY J
Officer
25,000 Direct Option Exercise at $5.88 - $5.88 per share. $147,000
25-Jan-08 DREIER R CHAD
Officer
80,000 Direct Sale at $31.22 per share. $2,497,600
25-Apr-08 DREIER R CHAD
Officer
80,000 Direct Sale at $33.02 per share. $2,641,600
30-Apr-08 BANE DANIEL T
Director
3,000 Indirect Sale at $33.35 per share. $100,050
1-May-08 SCHREINER DANIEL G
Officer
20,000 Direct Sale at $33.50 per share. $670,000
1-May-08 FRISTOE DAVID L
Officer
3,667 Direct Disposition (Non Open Market) at $33.14 per share. $121,524
1-May-08 SCHREINER DANIEL G
Officer
3,667 Direct Disposition (Non Open Market) at $33.14 per share. $121,524
1-May-08 MILNE GORDON A
Officer
7,000 Direct Disposition (Non Open Market) at $33.14 per share. $231,980
1-May-08 CUNNION ROBERT J III
Officer
3,667 Direct Disposition (Non Open Market) at $33.14 per share. $121,524
1-May-08 GECKLE TIMOTHY J
Officer
3,667 Direct Disposition (Non Open Market) at $33.14 per share. $121,524
1-May-08 ELDER ERIC E
Officer
3,667 Direct Disposition (Non Open Market) at $33.14 per share. $121,524
1-May-08 NICHOLSON LARRY T
Officer
4,667 Direct Disposition (Non Open Market) at $33.14 per share. $154,664
2-May-08 GECKLE TIMOTHY J
Officer
20,400 Direct Sale at $33.50 per share. $683,400
25-Jul-08 DREIER R CHAD
Officer
80,000 Direct Sale at $20.79 per share. $1,663,200
8-Aug-08 GECKLE TIMOTHY J
Officer
30,000 Direct Sale at $22.79 per share. $683,700
24-Oct-08 DREIER R CHAD
Officer
80,000 Direct Sale at $15.24 per share. $1,219,200
19-Nov-08 GECKLE TIMOTHY J
Officer
30,000 Direct Sale at $13.12 per share. $393,600
25-Nov-08 METCALFE NORMAN J
Director
30,000 Direct Sale at $15.35 per share. $460,500
30-Jan-09 DREIER R CHAD
Officer
80,000 Direct Sale at $15.48 per share. $1,238,400
30-Jan-09 ELDER ERIC E
Officer
20,000 Direct Sale at $15.61 per share. $312,200
2-Feb-09 SCHREINER DANIEL G
Officer
10,300 Direct Sale at $16.14 per share. $166,242
1-May-09 CUNNION ROBERT J III
Officer
5,501 Direct Disposition (Non Open Market) at $19.80 per share. $108,919
1-May-09 GECKLE TIMOTHY J
Officer
5,501 Direct Disposition (Non Open Market) at $19.80 per share. $108,919
11-May-09 MILNE GORDON A
Officer
10,000 Direct Sale at $20.56 per share. $205,600

                BANK OF AMERICA

Massive insider selling by BAC board members belies their claim
that no one could have predicted their stocks' collapse.   They
knew perfectly well and clearly they had over-leveraged BAC
and it was going to collaspe.

                            
BANK OF AMERICA
                                 2007
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                    BANK OF AMERICA
                                 2008
wpe161.jpg (76446 bytes)

                        Insider Selling in BAC
                                                                     (Yahoo Finance)  Data starts in July 2007.

17-Aug-07 GIFFORD CHARLES K
Director
333,180 Indirect Sale at $51.30 - $51.41 per share. $17,110,0002
4-Sep-07 MCGEE LIAM E
Officer
97,500 Direct Automatic Sale at $50.62 - $51 per share. $4,954,0002
30-Nov-07 GIFFORD CHARLES K
Director
359,918 Indirect Sale at $46 - $46.06 per share. $16,567,0002
15-Feb-08 BRINKLEY AMY WOODS
Officer
28,775 Direct Disposition (Non Open Market) at $42.70 per share.
$1,228,69
 
15-Feb-08 DESOER BARBARA J
Officer
25,150 Direct Disposition (Non Open Market) at $42.70 per share. $1,073,905

                                CEO KEN LEWIS SOLD $4.5 Million of BA AT $42.70

15-Feb-08 LEWIS KENNETH D
Officer
106,828 Direct Disposition (Non Open Market) at $42.70 per share. $4,561,555
15-Feb-08 MCGEE LIAM E
Officer
28,503 Direct Disposition (Non Open Market) at $42.70 per share. $1,217,078

  

1-Oct-08 BRINKLEY AMY WOODS
Officer
25,000 Direct Automatic Sale at $38 per share. $950,000

                                CEO KEN LEWIS BOUGHT $2 Million of BA  AT $23.15

4-Nov-08 LEWIS KENNETH D
Officer
86,000 Direct Purchase at $23.06 - $23.15 per share. $1,987,000

  

1-Jan-09 THAIN JOHN A
Officer
93,374 Direct Disposition (Non Open Market) at $13.56 per share. $1,266,151

                              BAC EXECs START BUYING Under $6.00.
  Obama and Treas. Secty. Geitner guarantee that BAC will not be allowed to fail.

20-Jan-09 LEWIS KENNETH D
Officer
200,000 Direct Purchase at $5.98 - $6.06 per share. $1,204,000
20-Jan-09 TILLMAN ROBERT L
Director
200,000 Direct Purchase at $5.77 - $5.78 per share. $1,155,000
4-Feb-09 LEWIS KENNETH D
Officer
200,000 Direct Purchase at $4.78 - $4.81 per share. $959,000

                           

Want to do more research?

  Insider informed selling is rampant.  Here is a blog devoted to such cases.
         http://lawprofessors.typepad.com/whitecollarcrime_blog/insider_trading/index.html

 

           
    
        

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