How to treat "private sale"?

**jeep** Sat Mar 12, 2005 1:40 pm

How to treat "private sale"?
blast,

In your recent insider buying report, AIZ has big chunk of "private sale". I know the buyer in this transaction has to obey certain restrictions since the stock was not sold in the open market. My question is when making an investment decision, how do you treat "private sale"? Same as open market sale? Or as if there were no such transactions?

**blast_investor** Sat Mar 12, 2005 7:41 pm

You can check SEC web site for full report of "private sale".

Private sale usually means sale not in the stock market. For example, selling and buying among institutions directly without going through stock market.

**afan** Thu Mar 17, 2005 9:35 pm

I am sorry I still don't know how to treat them. Say, the CEO in stock xyz has large insider purchase on the opern market. We might think the CEO is fully confident with his company. Now, suppose the CEO don't have such purchase, but have private purchases instead. Let's assume he bought those shares at prices similar to the market quote, which is quite common. Can we have the same feeling that the CEO is confident with his stock?

3x again

blast_investor wrote: You can check SEC web site for full report of "private sale".

Private sale usually means sale not in the stock market. For example, selling and buying among institutions directly without going through stock market.

**blast_investor** Fri Mar 18, 2005 1:14 am

I would not take insider selling (private or public) too seriously.

There are many reasons to sell: buy mansion, give money to sons and daughters, diversify wealth, etc.

Many times, insider selling is neutral, it does not mean anything.

However, there is only one reason of insider buying: insiders believe the stock price will go up.

**jeep** Fri Mar 18, 2005 1:26 am

Let's assume a situation where there are two parties: A and B, both insiders. Now that A sells 1 million shares to B through private transaction.

I suppose this is not negative, since insider selling doesn't matter that much any way. But is it neutral or positive?

blast_investor wrote: I would not take insider selling (private or public) too seriously.

There is many reasons to sell: buy masion, break money to sons and daughters, diversify wealth, etc.

Many times, insider selling is neutral, it does not mean anything. It is neutral.

However, there is only one reason of insider buying: insiders believe the stock price will go up.

**blast_investor** Fri Mar 18, 2005 1:30 am

If both are insiders for the transaction, then the transaction is pretty much neutral.

One insider sells, another insider buys.