Eating Their Own Cooking
In a week when you needed a metal detector (specifically one for gold) to find any good news, Barron’s reported that executives are purchasing stock in their companies at a rate approaching March 2009, the bottom of the last big bear market. This was near the end of the Great Recession just as the market embarked on a ferocious rally. Company officers and directors purchased $681 million of their own stock in the first half of August, just 15 percent shy of the level in March 2009. A broad swath of the market participated in the trend including health care, energy, financials and industrials. According to Barron’s, the inside buyers either don’t expect a recession or they think their stock is already priced for one. A recent article posted on the Web site Seeking Alpha identified Molson Coors Brewing Company, Morgan Stanley, The Cheesecake Factory and Apollo Residential Management as a few of the companies where insiders were loading up.
Being a real estate company, Grubb & Ellis is not a purveyor of stock market advice. That said, robust insider buying can be taken as a sign of optimism about corporate earnings and, by extension, the economy.
Have a great weekend.
SVP, Chief Economist
Grubb & Ellis
To unsubscribe from this email select "Reply" and type "Unsubscribe me" in the subject field.
© 2011 Grubb & Ellis, all rights reserved.