re: Redback Boosted by TCV, Verizon Talk"A large insider buying more stock like that is a loud and clear 'Buy' signal," says Herb Chen, principal at Chen Capital. "That's as loud and clear a message as you get in the stock market." Chen disloses that he's an owner of Redback shares. -----------------------------------------------
Now THAT'S neutral and un-biased advice!
Yet another Wall Street stock whore shows his colors.
re: Redback Boosted by TCV, Verizon Talkwho writes this crap? Anyone with a clue (or at least an attempt to research the story) would know that VZ has been a RBAK customer for about 7 years. Even rbaks's senior management's incompetence couldnt change that.
re: Redback Boosted by TCV, Verizon TalkSo how exactly would you interpret the open market purchase of 1mm shares of RBAK at the year's high by a financially savvy insider?
re: Redback Boosted by TCV, Verizon TalkClearly, it is a positive signal when an astute investor adds to an already winning position.
That said, LR should have looked for an analyst who doesn't own a piece of RBAK to comment of the significance of the purchase as Mr Chen clearly has an interest in RBAK's shares going up! I believe that was TMC's point.
re: Redback Boosted by TCV, Verizon TalkClearly, it is a positive signal when an astute investor adds to an already winning position.
That said, LR should have looked for an analyst who doesn't own a piece of RBAK to comment of the significance of the purchase as Mr Chen clearly has an interest in RBAK's shares going up! I believe that was TMC's point. ---------------------------------------------
It could also mean other things such as an investor that want's more control, it could also be an attempt to try to influence a relatively small and lightly traded stock in favor of their holdings - since they got cheap stock in the restructuring their average cost is better than someone buying now. It could be a number of different, complicated things. Wall Street (like Vegas) tries to play a game with odds heavily in their favor so listening to someone with skin in the game is meaningless. All of Mr. Chen's interest is involved in the stock going up so...
re: Redback Boosted by TCV, Verizon TalkThere are few truly neutral and unbiased sources of information. Those who have skin in the game have typically done a greater level of homework than those who don't have any skin in the game. Yes, Chen is talking his book, but so is pretty much anyone in the investment game. Personally, I am most suspicious of those who have no skin in the game. If they like a stock so much, how come they don't own it?
Indeed, TCV's purchase could relate to any of a number of reasons, but the simplest and most likely reason is that they probably think the stock is attractive at this price.
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Now THAT'S neutral and un-biased advice!
Yet another Wall Street stock whore shows his colors.