Are UMS Holdings insiders sales a concern?

June 9, 2014 at 8:07 pm 2 comments

UMS CEO and it major customer Applied Materials has been unloading their shares substantially.UMS shares has enjoyed a good run since its announcement of bonus shares, so naturally profit-taking to lower risk is expected especially when the company is so dependent on 1 customer and a highly cyclical industry.

Normally,i will take it as a red flag if insiders sell but in this case, semiconductor industry is still doing well and expected to do well for the rest of the year. Unless the insiders know something that isn’t reflected in the news, insider sales, in this case, is purely de-risking and not running ahead of bad news.


Entry filed under: Watch your step.

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2 Comments Add your own

  • 1. Anonymous  |  June 10, 2014 at 9:47 pm

    Today drop $0.10, do you know?

    • 2. leechongmeng  |  June 12, 2014 at 11:34 am

      yes. most probably due to insider selling. as i stated it is a red flag for normal cases,but semiconductor industry is doing well and expected to do well for rest of year, unless insiders know something which they didn’t disclose to the public, the insider sales is just pure profit taking after the tremendous run up in price. alhtough,i must caution this is a company that is highly dependent on one product one customer one highly cyclical industry.


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