Insider Buys and Sells: Weekly Wrap-up
Monday, September 21, 2009 | Tycoon StaffRating:
For all the analysts and pundits in the financial media, there is still no better judge of a company's health and future prospects than the owners and executives of those companies themselves, along with major institutional shareholders.
That's why insider buying and selling is a critical piece of data that is monitored by people who invest for a living.
As part of our continuing efforts here at The Tycoon Report to level the playing field between individual investors and the fat cats on Wall Street, we're keeping you informed -- on a daily basis and at no cost whatsoever -- of the most significant insider buying and selling.
Below is a weekly re-cap of the past week's activity of important insider buys and sells. We aim to publish this re-cap every Monday, and it can be accessed in your e-mail issues or on the Tycoon Report Web site.
Very important note: While these re-caps are available on the Tycoon Report Web site, if you want the most timely information we provide on insider buying and selling, be sure to read the e-mail issues that we send each weekday morning.
BUYSThat's why insider buying and selling is a critical piece of data that is monitored by people who invest for a living.
As part of our continuing efforts here at The Tycoon Report to level the playing field between individual investors and the fat cats on Wall Street, we're keeping you informed -- on a daily basis and at no cost whatsoever -- of the most significant insider buying and selling.
Below is a weekly re-cap of the past week's activity of important insider buys and sells. We aim to publish this re-cap every Monday, and it can be accessed in your e-mail issues or on the Tycoon Report Web site.
Very important note: While these re-caps are available on the Tycoon Report Web site, if you want the most timely information we provide on insider buying and selling, be sure to read the e-mail issues that we send each weekday morning.
Eagle Bancorp (EGBN)
President and CEO Ronald D. Paul bought $2.5 million in shares. View details.
SELLS
Alliance Data Systems (ADS)
EVP, CAO, Gen. Counsel, Secy Alan M. Utay SOLD $1.25 million in shares. View details.
Anadarko Petroleum
Chairman, President & CEO James T. Hackett SOLD $2.3 million in shares and $15.9 million in options. View details.
Celgene (CELG)
Director Walter L. Robb SOLD $2 million in options. View details.
Director Gilla Kaplan SOLD $2 million in options. View details.
CEO Sol J. Barer SOLD $31 million in options. View details.
Commerce Bancshares (CBSH)
Chairman of the Board, CEO David W. Kemper SOLD $1.3 million in shares. View details.
Dril-Quip (DRQ)
Co-Chairman of the Board Gary D. Smith SOLD $1.5 million in options. View details.
Invitrogen (LIFE)
SVP, Chief Financial Officer David F. Hoffmeister SOLD $9.1 million in options. View details.
SVP, Global Ops & Services Mark Sean O'Donnell SOLD $1.1 million in options. View details.
Lazard (LAZ)
Director Vernon E. Jordan Jr. SOLD $1 million in shares. View details.
CEO Michael J. Castellano SOLD $3.8 million in shares. View details.
General Counsel Scott D. Hoffman SOLD $4.6 million in shares. View details.
Vice Chairman Steven J. Golub SOLD $9.6 million in shares. View details.
President Charles Ward SOLD $8.4 million in shares. View details.
COO Alexander F. Stern SOLD $1.2 million in shares. View details.
Southwestern Energy (SWN)
Executive Chairman Harold M. Korell SOLD $15.7 million in options. View details.
Director Lewis E. Epley Jr. SOLD $2.77 million in options. View details.
TJX Companies (TJX)
SEVP, Group President Jerome R. Rossi SOLD $1.5 million in options. View details.
President and CEO Carol Meyrowitz SOLD $1.5 million in shares. View details.
Toll Brothers (TOL)
Director Bruce E. Toll SOLD $4.2 million in shares. View details.
Urban Outfitters (URBN)
CEO Glen T. Senk SOLD $3.7 million in shares. View details.
Economic Calendar for the Week of Sept. 21-25
FRIDAY, SEPT. 25
8:30 a.m. Durable Goods Orders
* Importance (A-F): This release merits a B.
* Source: The Census Bureau of the Department of Commerce.
* Release Time: 8:30 a.m. Eastern around the 26th of the month (data for month prior).
* Raw Data Available At: http://www.census.gov/ftp/pub/indicator/www/m3/index.htm
The durable orders release measures the dollar volume of orders, shipments, and unfilled orders of durable goods (defined as goods whose intended lifespan is three years or more).
Orders are considered a leading indicator of manufacturing activity, and the market often moves on this report -- despite the volatility and large revisions that make it a less-than-perfect indicator.
These problems can be minimized by looking at the breakdown of orders. The total number is often skewed by huge increases in aircraft and defense orders. An increase based solely on strength in one sector tends to be discounted, while the market is more impressed with broadbased increases in orders.
Highlights
* Durable goods orders surged 4.9% in July, well above the 3.2% increase predicted by the Consensus. However the headline is very misleading.
* The Cash for Clunkers stimulus package was not a driver, as motor vehicles and parts orders grew 0.9% after declining 0.2% in June.
* Instead, the headline growth number was driven by a colossal increase in nondefense aircraft orders, which grew 107.2%. Aircraft orders are generally highly volatile and growth at this level is not sustainable.
* Non-residential investment is again trending down, as new orders for nondefense capital goods excluding aircraft fell 0.3%. A drop in machinery orders by 6.6% offset a gain in communications equipment orders.
* Excluding transportation, new orders increased a very modest 0.8%, slightly less than Consensus.
* Shipments, which factor into GDP growth, grew at a nice 2.0% pace and help get Q3 GDP growth off to a nice start. Excluding transportation, shipments grew 2.2%.
* The inventory contraction remains a problem as inventories fell 0.8% in July.
* The Cash for Clunkers stimulus again posted a mild surprise as auto inventories did not pick up. However, this could have resulted from demand for autos outperforming production. The cause of the inventory decline won't be fully known until the industrial production numbers are released next month.
Key Factors
* In all, the durable goods release was not as strong as the headline numbers suggest, and future growth still looks especially weak, given the volatility in the aircraft industry.
Big Picture
* Durable goods orders trends were very weak in late 2008 and early 2009. That reflected a collapse of confidence in the business sector and poor credit market conditions. The rate of decline has eased and there has been some intermittent increases of late that suggest the worst of the downturn is over. Still, the business investment outlook can be considered weak.
9:55 a.m. University of Michigan Consumer Sentiment Index
* Importance (A-F): This release merits a B-.
* Source: The University of Michigan.
* Release Time: Preliminary: 10 a.m. on the second Friday of the month (data for current month); Final: 10 a.m. on the fourth Friday of the month (data for current month).
The Michigan index is almost identical to the Conference Board Consumer Confidence index, though there are two monthly releases, a preliminary and final reading. Like the Conference Board index, it has two subindexes -- expectations and current conditions. The expectations index is a component of the Conference Board's Leading Indicators index.
Highlights
* The preliminary September reading of the Michigan Consumer Sentiment index came in well-above consensus (67.5) at 70.2. The reading in August was 65.7.
* The current conditions portion of the index rose to 71.8 from 66.6.
* The expected outlook increased to 69.2 from 65.0.
Key Factors
* The stronger-than-expected reading shouldn't be too much of a surprise to the market. The index is highly correlated with positive/negative news reports from the media, and all the talk of the end of the recession over the last few weeks gave the consumer a feeling of relief that the economy is doing better.
* Unfortunately, better consumer sentiment readings will probably not translate into increases in consumer spending. Income is the main driver for consumption expenditures and, as unemployment continues to creep higher, consumption growth is expected to remain low.
Big Picture
* Sentiment readings are a reflection of a variety of events rather than an accurate tool for forecasting consumer spending. Gas prices and political events can have an outsized impact on sentiment. In general, these data are of very little economic value.
Source: Briefing.com
