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Insider Weekends – July 2, 2010

  • July 4, 2010

Happy 4th of July and welcome to the fourth edition of Insider Weekends. We saw a significant drop in insider selling last week while insider buying more than doubled even after removing Carl Icahn’s purchase of Lions Gate Entertainment (LGF) 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 was just 2.55 despite a large options related sale by Safra Catz, the President of Oracle Corp (ORCL), who sold 750,000 shares generating  $16.48 million. In other words, insiders sold less than 3 times as much stock as they purchased. This compares very favorably with the week prior when the ratio stood at 43.46. 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. Agilysys (AGYS) $7.29

Once again this week, the biggest insider purchase if you don’t take into account stock offerings and Carl Icahn increasing his stake in Lions Gate, was the acquisition of 188,790 shares of this IT services provider by its Director Andrew Cueva for $1.32 million. Mr. Cueva, Managing Director of New York based hedge fund MAK Capital has served on the Agilysys board since June 2008.

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