Nortel Insider – by Desk Jockey

The view from one Desk Jockey

Look who’s selling NT…

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Speaking of actual insider trading, check out who’s been selling NT.  With the drastic drop in price over the past few days to a week-end close of $0.56 (Mkt Cap: $278.60 Million), you might think that it was haters shorting and institutions jumping ship that were the only ones thinking the price would go down.  But it turns out that almost every single insider trade in the past two years has been a sell! (Thank God for SEC Form 4, or else we would potentially not know about this ugly two-faced behavior)

In fact, the only inside buys were from directors, who likely wanted the shares for the extra votes they’d bring in the next upcoming BoD elections.  Perhaps this is how Mike Z. justified his now-infamous statement of NT being a “bargain at $20”.  The whole affair makes you sick.

In fact, according to analysis by BusinessWeek, the fact that insiders own only 0.22% of NT stock (433,722 shares – worth less than an average house today) suggests that “insiders goals could be less aligned with those of shareholders”.  Gee, who would have thought?

The same BusinessWeek link also highlights the fact that every insider trade for the past 3 months has been a sell.  How these corporate officers can continue to stand up and tell us that things will be okay and that the sky isn’t falling while at the same time dumping NT stock like it is disease is beyond me.  Their capacity to lie through their teeth astounds me. 

I mean, it’s not as if the executive team is in need of cash and thus has to sell their NT holdings, judging by the compensation they received last year – no, it is plainly obvious that they themselves do not believe in the viability of the company or their ability to lead it.  Judge a person by their actions and remember – money talks.

Another note of interest – if the GEnius executive team receives the same compensation again this year, they will earn about 7% of the total current market valuation of Nortel! Great job guys, looking out for #1.

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Written by Desk Jockey

November 15, 2008 at 12:36 am

Posted in Uncategorized

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