If insiders had expected the stock price to go up, wouldnn't they have waited to sell those shares? The disclosure about massive stock sales by the CEO and some other insiders suggests that those insiders expect the stock price to be lower after the quarterly report. They even had to sell in a way that evaded the quiet period rules of the SEC.
Should there be disclosure by a representative of a publicly traded company with a massive stake in the stock price? Is the representative paid (via bonus, for example) for this or does the representative's job title depend on such behavior?
Just before the prior quarterly report, CRM jumped to 67 and then sold off as far as sub 49 before bouncing back into the 50's. The quarter, CRM is around 55 before the report that's likely to still show no GAAP earnings, increasing expenses, and with no expectations of GAAP earnings next quarter either.
"Summary" article leads to video about CRM catching up to other stocks that are placed into a stock index. The message is by a man who I've seen in a Fidelity ad.
Yes, JCP is a competitor or Macy's in at least some key malls. There are other competitors, too. In the clothing area, The Gap stores is a competitor, for example. If Sears was the only or even main competitor of Macy's, Macy's wouldn't need to have as many discounts as they do. But, consider the source of the comments about Sears vs Macy and nobody else of note.
I agree. I read it yesterday. While the S & P 500 is up, CRM has turned down under resistance. If the S and P 500 index recedes from being up +8.7, CRM could go down more even today.
In the meantime the 200 day MA is likely to drop little by little. Recently it was around 56. Now it's under 55. After hours, the ask of 54.65 is slightly under the 200 day MA.
There may have been an attempt at pumping this afternoon. It appears to have been countered by posts (over the weekend) about the risks of buying and trying to grow via a bunch of risky start-ups.
An unbiased look at the technical layout shows strong resistance just above where CRM closed today after many failed attempts (on low volume) to go higher. Today resistance was prominenet above 55.50 and there is resistance above 54.30 after hours. On what technical data to you consider post the number you did. Volume is one of many factors that don't support what you posted.
So far today there's been the pump. Between now and Thursday will there be the dump which will be more of a dump after the report?
Thanks for posting. IMHO your post is a signal that the morning's bounce in CRM is about to turn down. Of course, with resistance just above, CRM would be getting ready to turn down without your post, IMHO.
Are they counting on avoiding quiet period rules about not selling shares by issuing to themselves the same number of shares they are selling? They pay massively discounted prices for new shares they expect to be sell later at market prices in a year. Even if they don't expect to profit from selling the new shares later, they need to buy those new heavily discounted shares because that's the only way they can complete the selling transaction Does that escape the quiet period rule? Are they getting around that SEC stipulation by buying the same number of shares as they are selling?
Would they hurriedly unload massive numbers of shares now if they expected a good report next week?
There's a difference between a closely held company and a company whose shares are publicly traded.
You've printed bullish and bearish comments. You looked for 87 on a prior Friday and recommended going short around the same time. In other words, it's time to put you on ignore.
The long side isn't winning now. With the exception of some very low volume retracing bounces, CRM has been going down since it topped out briefly at 67. Most of this downside has occurred in an up market. Now with disappointments from a variety of companies and with the continuation of the Fed's taper CRM won't have the bullish atmosphere that had pushed it up. This is when the accounting issues, etc. can make a difference.
Making recommendations as Cantor without actually buying the stock is not the same as Einhorn making a statement by actually shorting the stock.
The Cantor statement is a statement of their prior evaluation. It's not a repudiation of anything.
Did you consider that "cash flow" from insiders selling at market prices shares they've acquired for little or no cost requires issuing more shares. That creates dilution. While some companies balance that by buying back some company stock, some companies don't have the money to buy back shares.
Yesterday's move down was on higher than average volume. While the stock had some up days before that, they were on lower volume. That volume was low enough to drop the averages significantly. Yesterday, CRM dropped on over 6 million shares.
It's likely there would have been a much larger drop if there had been no short covering. While I didn't cover my shorted stock, I closed out options that I may replace.
I still of the question about insider selling during the quiet period (30 days ahead of the quarterly report). Why would someone monetize holdings and actually sell during an SEC designated quiet period?