Would someone please explain insider transactions to me. It looks like over 2 billion dollars of insider transactions were sold so far in 2011. Where did that money come from and where did it go? To me, a 66 year old retired middle school teacher, it looks like it came from investor money and went into private income pockets. If so, why would anyone buy this stock? I used to be interested in purchasing this stock but I just can't get past this. I am not a basher. Someone pleae explain.
it's important to note that MCP insiders observe a "blackout" period
which runs from approximately mid September through mid November.
a blackout is observed to prevent the appearance of insider trading,
as an earnings quarterly period closes, is collated, then released.
this means NONE of the selling since the 09/20/11 JPM downgrade is
coming from insiders paid with shares who are now entitled to sell them.
Wait, first you are interested in buying MCP, and now you want to travel to NYC to protest? Hmm.
As for purchases, the explanation is a simple as could be: I think it may have been the most successfull IPO of 2010. Stock rose a lot, so holders sold and made a lot of money. The real earnings won't start till end of 2012, so it makes sense they'd want to cash out some early. Still, it's a stock with plenty of unsold insider stock.
. I became interested in Molycore when I invested in A-123 batteries. Someone on this board said there was a huge insider buy in Molycorp so I went to look. What I saw was one buy and billions of dollars of sells.
I thought I was misinterpreting what I was seeing…Hence my question. Now my questions have been answered and these answers have led me to to the conclusion that I should support Wall Street reform in every legitimate way possible. This is not”earned money” unless you consider it was earned by doctors, construction workers, people who made things, etc.
I really hoped I was wrong about where the money came from and where it went. I had so many outstanding students with social conscience and intelligence - I really believed we had a bright future.
Ron, here is my take.
Each individual has their own unique level of risk tolerance. The bottom line is the stock market is just another form of gambling.
When you make a purchase of any security on any exchange, there is a probability that you could lose your entire investment. So the first question any investor should ask, is how much can I invest with the possibility of losing it all and not have it adversely affect the financial well being of myself and those that I love. If the answer is -0-, you should not invest in the stock market.
If you do have risk capital available, and Molycorp stock is a company that you are interested purchasing some of their stock , I suggest that you call their investment relations department and request a copy of their last annual report. Go to the section of the report entitled "risk factors".
This should provide you with an excellent snapshot of the who what where why of the company the industry, and governmental involvement/interest in the markets that the company operates. I believe this will help you decide just how much if any of your dollars you want to put into play towards the purchase of this or any other stock you might have under consideration.
I know I haven't addressed your concern about insider stock transactions. Personally, I pay no attention to it, because there are millions of reasons why officers and directors buy and sell that have absolutely no correlation with the business taken as a whole.
Hope this helps.
Actually my name is Carol. Ron is my other half. I grew up watching "Leave it to Beaver" in a Republican family. Been conflicted until lately. Even if I thought I'd make a boatload of money I can't make myself buy into something that takes money from working people and dumps it on unfortunate billionaires. I guess I got my answer about where the money went and where it came from.
Need to go shopping now to prop up the economy.
Yes insiders and pre IPO investors grabbed allot of cash, They took some real big risks investing when REO prices were very low as well. I have seen worse but have to go back to .COM bubble a dozen years ago to find many examples. I have made very good money shorting MCP stock. Right now the fundamentals look good. Cash is good, Profits are increasing nicely. Insider trading has stopped. I am long on MCP now. IF past management behavior is important to you, do not invest here. There are a few things that still bother me but selling stock in the past is not one of them.
Unfortunately,this was done in 2011 Not so very long ago.
Even more was taken before then. see below.
As a side note - Yes, they did invest at IPO price but the risk is relative to what you already have.