Salesforce Insiders Dump $24M of Stock Ahead of Earnings

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Salesforce Insiders Dump $24M of Stock Ahead of Earnings
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Salesforce Insiders Dump $24M of Stock Ahead of Earnings

In the last 4 days salesforce.com, inc. (NYSE:CRM)  insiders have sold $24 million worth of stock, just before the company reports quarterly earnings on the 28th of February. What is even more curious, as if if dumping stock during earnings week is not curious enough is that most of the shares sold were RSU’s that did not expire in most cases for 2-3 years (here is a link to the page). Even worse is almost all of these shares are NOT indicated to be part of a 10b5-1 trading plans in which insiders buy/sell shares at predetermined intervals/dates/price targets. They are just deciding in the last week to sell these shares ahead of earnings.

I have long detailed the continued liquidation of insider holdings at salesforce.com, inc. (NYSE:CRM) ($89 million last two months, $268 million last two years, $572 million last three years) and am sad to say it continues unabated. What has changed though is the frequency that options and RSU’s are being exercised and sold two to four years ahead of their expiration. THAT has increased.

This Hedge Fund Believes The New Real Estate Cycle Is “Well Underway”

REITChilton Capital's REIT Composite was up 6.1% last month, compared to the MSCI U.S. REIT Index, which gained 4.4%. Year to date, Chilton is up 6.3% net and 6.5% gross, compared to the index's 8.8% return. The firm met virtually with almost 40 real estate investment trusts last month and released the highlights of those Read More


It is as if insiders are winking at you and letting you know the party in the share price is coming to an end (god knows the fundamentals don’t even support a $100 share price), they just are not going to say it out loud…….they still have plenty of shares to dump first.

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a RealMoney.com contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.

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