Joe Orlando sells 48,000 shares at $25.54. I know, B-man, it doesn't mean anything. Except that it is almost all of his holdings, and the last time he sold any stock is in April of 2008 when the stock was at 50 bucks.
He must really have confidence that the stock is going significantly higher in the near future. NOT!
That is the Leucadia position. We went through this on the board a long time ago, shortly after the initial investment.
Note that the position represents 25% of ACF shares outstanding, exactly corresponding to the Leucadia position.
You don't really believe that LUK and Cumming each own 25% of the company separately do you?
May be insiders are selling now because they anticipate higher taxes in future. Taxes for "the rich" are going up next year and since most Dems are obsessed with preventing rich from getting richer it's only going to get worse.
As I mentioned before, nobody "knows" the future. The claim that the sales imply knowledge of the macroeconomic future is ridiculous.
Furthermore, if you owned 24 million shares acquired at effectively a zero cost basis, you might consider $25/share a reasonable price to take some cash off the table and they've been doing this for years. They owned like 40% of Leucadia, now they own just under 20%.
I wouldn't be surprised if in a decade they owned 10%. None of this, however, tells you what a small, independent investor's return in owning LUK will be over this next decade.
speculation about insider selling - pure gossip, but says very little about your investment.
I don't give a crap what anyone says, this is not a good development.
Just what the hell does this guy know that he's not telling us?
My largest position is JNJ, I have several thousand shares, I am not insider but have had shares for many years, If I sold all but say 200 shares, what would that tell what I think of the company.
We need more information.
Leucadia CFO's $1.2 Million Sale
INSIDERS TOGETHER OWN more than a 22% stake in diversified conglomerate Leucadia National (ticker: LUK), making their transactions all the more noteworthy. Recently the company's chief financial officer slashed his direct stake by 98%, selling $1.2 million in shares.
Joseph A. Orlando Jr., CFO and vice president of Leucadia, sold 47,749 shares at an average price of $25.54 each on March 22. After the sale, he held 1,680 shares and 38,000 exercisable options.
Orlando's stake represents less than 1% of Leucadia's outstanding shares.
A Leucadia spokeswoman declined to comment on the sale.
Leucadia shares have risen 80% over the past 12 months, nearly double the 43% gain for the Standard & Poor's 500 during the period.
Leucadia is often referred to as a "mini Berkshire Hathaway" (BRKA) because its diversified conglomerate structure is similar to that of billionaire Warren Buffett's firm. It is a $6.2 billion market-cap holding company with subsidiaries in mining, drilling, communications, health care, financial services and real estate.
In 2009, the company's largest segment by revenue was its telecommunications business ($426 million), which includes long-distance provider STi Prepaid. Leucadia's second-largest division is Idaho Timber ($142 million), its Boise, Idaho-based lumber business.
On Feb. 26, the company reported net income from operations of $550 million on revenue of $1.1 billion for 2009, compared with a whopping net loss of $2.5 billion on revenue of $1 billion in 2008.
Orlando has been Leucadia's CFO since 1996 and a vice president since 1994.
His most recent sale was only his third open-market transaction on record. Orlando sold 15,000 shares on April 2, 2008, at an average price of $50.36 each. On Sept. 24, 2007, he sold 120,500 shares for $46.79 each. In both cases, shares fell significantly in the months following Orlando's sales.
Sean MacNeal, a research analyst with InsiderScore.com, says all of these factors contribute to the peculiarity of Orlando's most recent transaction. In both of the previous cases, Orlando sold when Leucadia's share price was nearly double what it is now.
"We can never know why he's selling, but it certainly does raise an eyebrow," MacNeal says. "It's not the largest sale in terms of dollar size, but it's the percentage of his holdings he's selling that is the most concerning."