Welcome to the fifth edition of Insider Weekends. We saw a reversal of roles last week with insider buying dropping precipitously from $59 million to just $6.6 million last week even as the Dow posted its best week in a year with a gain of 5.3%. One could attribute this drop to the short four day week. However insider selling picked up in pace with insiders selling $217.5 million worth of stock.
Sell/Buy Ratio:
The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider buying in that week. The adjusted ratio for last week jumped up to 32.90. In other words, insiders sold almost 33 times as much stock as they purchased. This compares unfavorably with the week prior when the ratio stood at just 2.55. We are calculating an adjusted ratio by removing transactions by funds and trying as best as possible only to retain information about insiders and 10% owners who are not funds.
Notable Insider Buys Last Week:
1. China Marine Food Group Ltd. (CMFO) $4.74
For the second week in a row, CMFO made it into the top 5 insider purchases of the week. CEO Pengfei Liu acquired 110,000 shares of this food processing and packaging company paying an average of $4.34 per share for a total amount of $477,400. 10% holder Kent C McCarthy also acquired 65,000 shares paying an average of $4.15 per share for a total amount of $269,830. These purchases are perplexing in light of the critical articles that have been written an anonymous short seller called “Chinese Company Analyst”. Check out his recent article titled “China Marine Food Group: Auditor’s Role in Another Alleged Fraud“.