A corporation has many officers, but when it comes to insider patterns, there is but one position which is key to gaining insight into a company's current, and future performance: the Chief Financial Officer.
On 5 August, 2011, Abbott CFO Tom Freyman sold 20,000 shares of the company's stock at a price over 5% LOWER than the current quotation. This was a direct market sale, no options exercise-related sell. Bad timing ? IMO, hardly. Trading based upon having knowledge of material insider information is a felony, but observing the insider pattern of the single individual who knows a company's financials inside and out, is as close to [ legal ] insider info as any investor -- individual or institutional -- will get.
Freyman is selling, and did at much lower levels. He has not purchased a single share over the past six months.
Today's abyssmal action in ABT ( on a session where the DJIA has rallied solidly into the green, as of this writing ) is also a clear warning that tomorrow's EPS and/or revenue numbers will be a considerable disappointment. JNJ is holding up after a mediocre ( at best ) quarter -- and JNJ is the AAA-rated darling of the institutional universe. ABT has tepid support at best...
I exited these shares this morning at 51.95 ( higher than Tom Freyman did ! ). I do not expect a good report, and would actually short these shares on any suckers' uptick tomorrow. Several here have commented on the channel ABT moves in -- this is the upper bound of said channel. Look to re-test the 45-change 52 wk low. If you wish to cover then or outright buy, then dip a toe in the water. Heatlhcare, as a group, is going to be a material loser going forward. Avoid the entire group, but for a trade here and there.
Hilarious. The CFO just walked away from an additional 120k based on where the stock looks to open this morning on absolutely stellar earnings and the split of the company. And you...well, looks like you missed a 10% move. You so called traders are a joke. Nice call.
It really gets me how people like to trade stocks. I have owned this one many years and have collected a lot of dividends. It is a quality hold. Clinton owned a lot of ABT before he became president and the stock had to go into a blind trust. I don't know if he still owns it or not. But it never hurts to hold the great companies for long term. Traders have to be right twice---on the buy and on the sell. Investors only have to be right once. I am an investor in the great companies of this country.
I sold shares a few days ago ~52.5, but when Abbott falls again I might buy back. I am expected a ho-hum report that will not impact Abbott price, but I do agree with you about the state of health care stocks. Whatever the congressional super committee decides there will be significant pressure on US health care spending. Abbott's pipeline is mediocre at best. The future of the company will be dependent on how well it can break into emerging markets (e.g. China and India). If Abbott executes this successfully it will grow.