This stock does not act well. All of its big public holdings were up nicely today and risk assets were up big. Commodities ran and LUK languished all day then finished on its lows. Is this problem with the beef company the reason or is there something else going on?
Another way to look at it, is there is no decade at which LUK did not end it with a gain exceeding the S&P500. So the last one was 2000-2010, for close to a 100% gain vs negative for the S&P500. Unfortunately, in this last period, most of the gain came in the first 5 years.
The current decade 2010-2020, it appears like most of the gain will come in the second 5 years as opposed to the first, but whichever way it's made up, this is a pretty amazing record by decade.
How many shares of LUK did Jeffries receive and subsequently sell in the open market?
According to current SEC Filings as of 09/30/2011 they held 56,506,024 shares of LUK and as of 02/14/2012 their holding had increased to 58,006,024.
If you own a great business, why would you want to sell it? Capital gains only apply if you are trying to sell your business. But if you are trying to buy a business, of course you prefer a lower price.
The problem here is people don't know if they are buyers or sellers. If you are a seller (and want capital gains), ask yourself why you got into a business you want to sell - especially when prices in the market are low. If you are a buyer, today's price is looking great!
The clue is the end of day trading volume.
Note the shares are being fed out in dribs and drabs until just before market close. Then the sell volume explodes as this graph shows;