Microsoft CEO sells $1.3bn stake as insiders head for the exit
Posted on 07 November 2010 with no comments from readers
Microsoft chief executive officer Steve Ballmer is the latest senior executive to cash out last week selling a $1.3 billion stake. The rush to the exit by senior US executives is gathering pace with thirty stock sellers to every one buyer in the past month.
Rats leaving the sinking ship, or just a few wealthy men adjusting their personal portfolios? Only a fool would believe the latter statement. These guys love to bet on a rising tide, and would almost all be buying shares if they thought the market was going up. They are selling instead.
Ballmer cashes out
Besides remember these are the ultimate insiders. They know the reality of the outlook for corporate America. In Ballmer’s case his views are widely known and a matter of public record.
Microsoft sensibly decided to downsize to a smaller tech market two years ago. It got that right. Now if it still sees a depressed or even falling market going forward then Balmer is only being prudent if he sells his stock while the Nasdaq is back to levels seen two years ago.
You can dress this up in whatever PR speak that you like. But to see this as anything else but the ultimate insider sale by the ultimate insider is to be an ignorant idiot.
Ballmer is still keeping a large stake in Microsoft but he is cashing in as much as he can without causing a panic over the stock, and issued a PR statement about the move to try to quash any speculation that he was doing it because the stock market outlook is awful.
The only question then is whether he was the last insider to get his stake sold before the market reverses?
