Not only have investors drifted further and further from out of favor stocks, but they are holding tight and even averaging up their positions in an ever-narrowing list of richly valued, momentum plays. Until this past Tuesday, that is. But if there's one thing we've learned it's that these things run in cycles. And remember, this is where insiders typically shine. Insiders, however, appear to find value, as in November, five purchased a combined 46,838 shares into generally firming prices.
Insiders seem to be placing their bets with the company as well.
Mr. Marsden sold shares in February '98 near to the stock's all time highs, and then exercised options and held on to the shares in September of that same year after the stock price had dropped in half. Also that the insider interest seems to reinforce the notion that the company's stock repurchase plan should benefit shareholders. Insiders are apparently not giving up. While gross and operation margins are down due to increased costs, the company has not fallen into the trap of allowing other key expenses to rise. In fact, despite business difficulties, general and administrative expenses are down.