Barron's: To catch Jabil Circuit shares near peaks, watch for stock sales by chairman
Wake up and good morning. Beware the sale of Jabil Circuit shares by company chairman Bill Morean. That's the point of a short Barron's magazine item about the latest transaction by Morean of 250,000 shares for $4.2 million, or about $16.72 each. He continues to hold about 15.9 million shares, or about 7.4 percent (roughly $270 million) of the company.
Morean had not sold shares in the company since July 2008.
Barron's points out that when Morean sells shares, Jabil's stock price often falls. Says Lon Juricic, president of StreetInsider.com:
"This guy has had some pretty impeccable timing. It seems like every time he's sold since 2006, the stock has had at least a 10% downside move. Any time he sells, whether it's a coincidence or not, he seems to pick the short-term top. When he sells, investors should be wary that the stock could drop 10% to 15%."
Here's the Barron's item.
All I want to know is: Who's his broker?
-- Robert Trigaux, Times Business Columnist