INTEL INSIDER BUYING
The semiconductor index (SOX) is up about 60% since last July. Intel (INTC) is flat. That is amazing under-performance. Just letting you know a director just bought about $500,000 worth of stock right around today’s prices on June 5th. Just because insiders buy does not mean a stock will go up but combined with the under-performance, thought it noteworthy to mention. We like leading stocks in leading groups…not lagging stocks. To be watched!
Was it a new director or an existing one? New directors often buy stock just to “join the club” . But existing directors only shell out $500,000 because they believe they know something the rest of us don’t appreciate.
Robert Holmes got this job about a year ago. Other than a small 1100 share trade a month ago this is his first real purchase. He now has a little over 15,000 shares so my guess is this was the price of admission to the club and being CFO. I am not diminishing its possible performance but most CFO’s have to show they have some skin in the game. This ain’t much skin for these guys.