Insider selling on the way down
April 28th, 2008Sell! Sell! That is the signal being given by the executives of AMR, the parent of American Airlines. Despite the stock being down 71% from its 52 week high, executives including three VPs, the Chairman of the Board and the CFO sold more than $3.3 million worth of stock.
I generally don’t pay too much attention to insider selling, because insiders sell for various reasons, but insider selling on a stock that has plunged is an ominous sign and most often means that worse news is coming.
To buy AMR right now is potentially buying a bankrupt company. Why on earth would I be buying from the top executives of AMR in such a tricky financial state.