Recently, I noted that Citigroup which is traded in the USA (symbol = C) has many insiders selling. One of the officer has just sold 100,000 shares worth $400,000. This insider still has another 2 Million shares remaining which is worth $8 Million at market price. Something in Peter Lynch book came to my mind. Peter mentioned that if you can’t imagine an officer being so rich, then most likely the share prices is unsustainable.
Since I cannot imagine an officer can be so rich, I suspect the share price is over-valued. As many insiders are selling almost at once, I suspect they know something that we don’t know. They are preparing to exit now. More bad news on the financial market may come. Please be prepared.
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