all the mockery he is subjected to on a regular basis, both here
and elsewhere, Dennis
Gartman issued a very prescient and timely warning ahead of
Facebook's earnings. As we noted yesterday in our note
thinks that this is a "This Is A Dangerous Time", the
(formerly) regular CNBC guest pointed out the following troubling
note the chart this page, courtesy of RBMP Capital, of the huge
and increasing sales of Facebook by its founder, Mr. Mark
Zuckerberg, over the course of the past several years and most
notably over the course of the past several months. When
owners sell this aggressively… no matter what the excuse they
might give…only the foolhardy do not pay heed.
Gartman understandably takes a victory lap, and writes the
closed at 4:00 p.m. at a new all-time closing higher of
$217/share, but when the news came out if fell swiftly to
$173/share… a loss of just over 20%! This
is fascinating in light of the massive “insider selling” of
Facebook shares by non-other than Mr. Zuckerberg himself in
recent weeks and noted here yesterday.
has also picked up on this insider selling deluge, and writes that "nine
Facebook insiders combined to sell about $4.13 billion worth of
stock since the Cambridge Analytica data-mining scandal first
surfaced on March 17."
Executive Officer Mark Zuckerberg accounted for 85
percent of the total, according to data from
InsiderInsights.com, which analyzes such transactions. The
social media giant’s stock fell as much as 24 percent in late
trading Wednesday after second-quarter sales and user
growth disappointed investors.
acceleration in selling is notable because as Gartman, and we,
showed yesterday, that
compares with $4.31 billion in all of 2017. And
while the traditional excuse is that "the sales were part of
pre-determined trading plans" the sharp acceleration in 2018
selling, and especially in recent months, should raise some
eyebrows, perhaps those of the regulators, because as Gartman -
who will have the last words - writes:
selling was of such massive size and such recent hurried nature
that one had to take note of Zuckerberg’s liquidation as a clear
indication of future potential problems. Those
problems were made clear last evening. The SEC may want to
take a look!"
again, with everyone's pension invested in facebook in some
capacity, the last thing the SEC will dare to do is cause a market
"event" by taking a close look at the one company in which as of
last quarter seemingly everyone was invested...