OK---did a little research on that.......
my results re tutes selling out
Ok, I have done a cursory research on WHY tutes would be selling, and some thngs were just plain commons sense...but some things I found were a bit of a surprise...and I will share what I discovered with y'all.
1. Sometimes not apparent because of the 'iceberg' method...selling a small amount of shares each day, under the radar of the retailers, if you will.
2. Tutes are 'voting with their feet' when they do not like the management performance of a company.
3. When they see abnormal negative returns on investment--like no profit, dilution of shares, heavy heavy ownership shares compared to retail shares, or shares like the google thing, where management has shares with extra weight given mgmt **,during voting times, or mgmt has too many shares and can over-ride everyone else--like during an annual meeting.
**each mgmt share is worth, say 10 votes, while all others are worth 1 vote.
4. When they see decreased R & D
5.. When they feel the Corporate Governance Structures make direct actions by the company, too costly to carry out.
6. A clear signal that 'something is wrong' in the company
7. OR, it could be that the tutes are repositioning theirstocks and has nothing to do with the company at all --BUT, if there is a dcrease in tute ownership of 12% or more (on average) then the following ususally happens.
What was found in a study, in 2001 &2002, and published in 2002 was rather interesting:
1. Tutes start selling about 4 quarters before a CEO is fired.
2. Tutes selling more likely than not--forces the BOD ti make a decision to change CEO's.
And then there is one more reason, tI wrote down on my little piece of paper...the company is for sale, and the tutes believe they will not get much of a return after that happens.
