It always bothers me when company executives start to sell millions of dollars worth of stocks. They must know something that we don’t. Or maybe it is just a coincidence they all want to get that new $5,000,000 house and a new Porsche… at the same time. CNNMoney is reporting that insiders at Corning sold almost $28 million in company stock in early August. The reason? Because they were not allowed to sell shares in April.
Corning explained further that every quarter the company normally opens a window so insiders can sell their shares. Well, they didn’t do that in April because Corning knew that demand for optical fiber and glass used in LCDs was softening and the information was not disclosed to the open markets at the time. When Corning did disclose that information, Wall Street responded by pounding the stock 14%.
So in early August, the window was opened for the insiders. And the insiders took advantage and sold their shares… $28M worth. I’m still skeptical.
Although Corning has a very strong position in the glass for LCD market, maybe the fiber optics market wasn’t too congenial to Corning. Who knows.
[tags]Corning, LCD Glass[/tags]