OT. FYI, from Dow Jones News, Tomorrow's News Today.
Insider Ownership Good, Up To A Point:
Not enough is bad, too much is probably worse.
There has been much debate in investment circles about
what impact “insider ownership” — that is, shares of a company
held by its officers and directors — has on stock performance.
In theory, if insiders own a large portion of a company
they would have a greater incentive to see the stock perform
well and continue to rise in value. But that may only be true to
a point. What’s more, there’s an important distinction between
shares obtained via options and those management bought.
Alan Lancz, director of research at LanczGlobal, an independent
investment research organization, said he believes that
over the longer term, companies with a heavy concentration of
insider ownership tend to perform better than companies with
relatively lower inside ownership because insiders have a longterm, personal stake in the company’s performance.
Milton Ezrati, senior economist and market strategist at
Lord Abbett & Co., said significant insider ownership is favorable as long as the interests of management and shareholders
coincide.
Good Trading,
Al