Recently, I took a look at Bank of America, Fifth Third Bank and found out that many directors are buying the shares. This usually means the bank is doing well. Until one look closer.
A closer look revealed many officers selling the shares. For the many directors buying, I noted that they are buying at zero cost a share. In short, the directors buying does not mean much as they pay nothing to get more shares. It is the many officers (insiders) selling that woke me up. How can the company be doing well if so many middle rank staff is selling the shares? Do they know something that we outsiders don’t?
Surely, we outsiders know less about the bank than the insiders. I suspect it is wise to follow the track of insiders to be careful of banks stocks such as Bank of America and Fifth Third Bank now.
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