Filed under: Insiders
MBIA (NYSE: MBI) executives recently slashed in half the price they will be paying for shares in the company’s recapitalization, but bullish observers are still pointing to their token investments as signs of confidence in the company’s future.
The Wall Street Journal’s Inside Track column (subscription required) gives investors good reason to be skeptical of these deals — which appear to me to be little more than publicity stunts where the investments made by executives represent a pittance compared to the compensation they have extracted from the company’s shareholders in spite of scandalously horrendous performance.
Here’s the thing: Jim Cramer has said frequently that insider selling happens all the time for many different reasons, but insiders buy for only one reason: they think their stock is going higher.
Continue reading Ignore insider buying at MBIA
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