Friday, July 4, 2008

Do insiders have advantages?

Sometimes you really wonder whether the insiders have more advantages compare to a know nothing investor like you and me. The management team of Parkson Holdings bought shares in January 2008 and still holding on to them faithfully. They lost almost 45 - 50% of their personal fortunes. Cheng Yong Kim and Cheng Yoong Choong could have easily lost 20 million plus Ringgits by now. They were either damned confidence about their company outlook or just another ignorant pundits.

PARKSON HOLDINGS reported that the following Principal Officers had acquired shares in the Company as follows:
1. CHENG YONG KIM - Jan 15 to 18, 2008 - acquired 5.42m shares at between RM8.40 and RM9.00 per share.
2. CHENG YOONG CHOONG - Jan 15 to 18, 2008 - acquired 4.63m shares at between RM8.40 and RM9.00 per share.
3. KOK WAI HUNG - Jan 7, 2008 - acquired 1,000 shares at RM9.20 per share.

Jeff Imelt, CEO and Chairman of General Electric bought quite a bit of shares in the beginning of this year and I think he is also suffers at least 25% personal loses.

Studies have shown that insiders typically have long time horizon in their investment. I hope they are right.

Change subject on timing the market and bargains. Kirk Kerkorian the seven richest man in American who started from nothing, bought almost 10% of General Motors thought they were a bargain at $ 30. He was shrewd enough to get out in time and now trading at 53 year low, selling for $ 11. 53 year low!

Buy low and sell high sound very simple but we won't know how difficult it is until we do it - even pros get it wrong. Just something to think about.

1 comment:

thebigbang said...

how wonderful if i can plant a spy camera into each Parkson store and link up to my computer and record the daily transaction everyday.

investor losing money because most of them groped in darkness.
if u want 1st hand info ,try talk to the account people,or befren them