Insiders are dumping stocks.
Moody’s finally fesses up to the fact that they received a Well’s notice from the SEC; this time, things could be different as Moody’s might officially be out of business. It could lose the right to be a rating agency, which would be a magnificent move.
Moody’s Corp has disclosed that its credit rating unit could face enforcement action from the US Securities and Exchange Commission for allegedly misleading regulators in a 2007 application to remain a nationally recognized rating agency. Moody’s filed late on Friday that the SEC is mulling starting an administrative case and “cease-and-desist” proceedings and that a so-called “Wells Notice” was received from the SEC on March 18. In the filing, Moody’s said it disagrees with the SEC and said it had sent a response explaining why its application was accurate and why it believes enforcement is uncalled for. Full Story
Of course, Moody will disagree with the SEC’s finding; those who make a living by sucking blood from others try to deny it until the very end. This same punishment should be levied against all the rating agencies that failed to do their job; rating agencies that mislead should be banned forever so that the message is clear, do your job or die. Of more importance, though, is that insiders appeared to have acted on this information to enable them to get the best price before this knowledge became public.
Large insider transactions: A Signal that All Is Not Well
Moody’s CEO Dumped 100,000 shares of stock the day the Well’s notice arrived. The well’s information came on the 18th of March; this clearly illustrates how corporate America is all about making money at the expense of its shareholders.
However, sales by Buffets Company make CEO Raymond McDaniel’s sales seem very small; they unloaded a boatload of shares, and the largest block was sold on the exact day that MCO received the notice.
The timing of these transactions and the size leave one wondering if Berkshire Hathaway might have been privy to some inside info; look at the trades. We are not stating that Buffet’s company did anything wrong, but the timing of these transactions does make one wonder.
18th of March, 678,962 shares at 29.98 a share
19th of March, 136,943 shares at 29.81 a share
23 march 148,054 shares at 30.22 a share
24th march 54,574 shares at 30.37 a share
26th march 3,000 shares at 30.56 a share
Other articles of interest:
Why Mechanical and Technical Analysis Systems Fail
The Limitations of Trend Lines
Portfolio Management Suggestions
The Good And The Ugly On Trading Futures
Mass Psychology or Contrarian Investing(Aug 12, 2015)
