Wednesday, September 24, 2008

Caterpillar Insider Stock Sales

On 9/19/08, Caterpillar insider and General Counsel James B. Buda sold 57,750 shares of Cat stock for $74.50 per share. At the time of his sale, Cat stock was trading on the open market in the $63 range. Mr. Buda also exercise 57,750 shares on 9/19/08 for $26.06. Mr. Buda has 34,572 remaining shares of Cat stock.

I don't know Mr. Buda but I'm asking him as a friendly gesture to contribute my wife's and my portion of the Downtown Museum fund raising drives. I'm glad for his lucky fortune.

My wife and I are both holding our Cat stock trading today at $62. Three years ago Cat stock was trading at $58.

We will not be contributing anything to the Caterpillar promoted museum. Instead, I ask Caterpillar to take the $79 or so million they are planning to spend downtown and invest it in something that will grow the value of their stock to their stockholders. Stock that has only an %8 increase in value or approximately 2+% a year..

Caterpillars first obligation is always to increase the value of investors stock to their stockholders. They have done so in the past, but very little lately.
When anyone sells at $82 there also has to be a buyer at $82. This buyers stock is today worth only $62 a share. Those who bought Mr. Buda's 57,000 shares and held them have a paper loss of approximately $1.4 million.

Another insider trading in May, is former Bradley University President John Brazil. He sold 8,000 shares at $82.47 after exercise of $29.43 leaving him with a remaining 8803 shares.

More good fortune to possibly help Bradley with their $100 million fund drive.

As Kenny Rogers, (sorry, I originally posted Glen Campbell) sang "You got to know when to hold to 'em, know when to fold 'em", but with the lack of transparency in the marlet, insiders have the best chance to know when to fold them.

I shouldn't leave our neighbor 80 miles up the road off the hook. John Deere CEO, picked an insider time to exercse an option on 703,256 shares of DE stock at $25.99 and sold 1/4 of it the same day for $82.58, the same day the stock peakeds

All insiders can't sell at the same time or they would be subject to an SEC inquiry. Some insider people just have good luck.

1 comment:

not an insider said...

Merle: Don't be jealous, ESPECIALLY of Buda. It's like karma...granted, these men cashed have a lot of money. But they are miserable SOBs in their personal life. Trust me...