Seeking Alpha

A WSJ analysis of 11,000 insider trades at 550 publicly traded companies has found that those...

A WSJ analysis of 11,000 insider trades at 550 publicly traded companies has found that those trades veer heavily towards the sale of stock in the year before a firm files for bankruptcy protection. At A123 Systems (AONEQ.PK), for example, six employees sold a combined 9.1M shares in the 12 months before the battery maker filed for Chapter 11. Other companies mentioned include Patriot Coal (PCXCQ.OB).
From other sites
Comments (3)
  • DAG1996
    , contributor
    Comments (3308) | Send Message
    That's not really news ... while I'm sure there is illegal insider trading going on in some cases, it's only logical that people who work at a company are the first to see the undeniable signs that failure of the company is imminent, even before bankruptcy is really on the table.
    11 Jul 2013, 05:25 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (2938) | Send Message
    It's rational behavior to sell something if you think the value will decrease.


    Instead,the article should focus on those who buy a stock before the company files for bankruptcy. that's not rational.
    11 Jul 2013, 07:46 AM Reply Like
  • samdehne
    , contributor
    Comments (103) | Send Message
    I year ago yesterday.. at almost this exact
    Not withstanding all the turmoil in coal industry,
    Patriot Coal should not be allowed decimate the
    True and Honest Patriot stock that so many
    American Patriots bought and paid for with hard
    earned money.
    AMAZINGLY the easiest thing to do is the
    honest thing to do. And safest.
    Just keep the PCX stock intact post-BK.
    That is all I am asking.
    I don't care if it is trading for .20 cents
    post-BK.. do not mutilate our stock!
    It's still gut-wrenching to read:
    "On July 9, 2012, Patriot Coal Corporation and substantially all of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Patriot is using the Chapter 11 reorganization process to make the changes necessary to survive and emerge as a long-term industry participant."
    "And to protect shareholders' interests" (from previous announcement)
    11 Jul 2013, 11:02 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector