Posts filed under “Investing”

Google Sellers Aplenty

In this weekend’s Linkfest, I referenced a Bloomberg article which looked at all the insider selling at Google and saw a total of $7.4 billion dollars. 

While I thought it was a lot of "diversification," I didn’t bother to line up all the numbers. However, John at GMSV did — and let me tell you, seeing the list in black and white was a shocker:

Senior Management Insider Sells (since *Feb. 14, 2005)

Larry Page: $2 billion
Sergey Brin: $1.9 billion
Omid Kordestani: $1.1 billion
Eric Schmidt: $650 million
Ram Shriram: $650 million (Director, Investor)
David Drummond: $200 million
George Reyes: $200 million
Jonathan Rosenberg: $200 million

To put that into context, insiders sold enough to buy almost half of Sun Microsystems (SUNW). Or, they could have bought all of contract mfr Flextronics . . .  and or 3/4s of on line broker E*Trade — together. Or, they could have simply purchased ~ 3/4s of Amazon.com — and still had $6 billion left over.   

Also noteworthy — despite Google’s stock price retracing about 25% from a high of $475 down to this past Spring’s low under $350, not one of these execs has re-purchased a Google share in 18 months.

GMSV ponder’s the question "Why not? Why are Google insiders scaling back their investments in a company that’s going great guns?"

“Any time you see insiders who are strictly selling, the market has to evaluate that," Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware, told the Financial Times. "If insiders are selling and not buying, it suggests they have found a place where their assets will appreciate somewhere else.”

 

Goog

UPDATE August 22, 2006 8:07 am

David Singer points out the Technicals of this:  this is a triangle formation that has been resolved to the downside (which according to the book, is not good) . . .

click for larger chart
Goog_tri_1

>

* 2/14/05 was the expiration date of the last restriction on insider sales
following Google’s IPO.

Sources:
Google’s Own Executives Rate the Shares `Sell’
Mark Gilbert
Bloomberg, Aug. 18 2006
http://tinyurl.com/of2qg

Don’t call it a selloff — we’re just making more Google shares available to small investors
John Paczkowski
GMSV, August 21, 2006
http://blogs.siliconvalley.com/gmsv/2006/08/in_the_past_yea.html

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