Insider Info from Peloton, Netflix and the Bank of Turkey

21 ene 2022

Not so long ago, we wrote about insider sales, which in 2021 significantly exceeded the figures of the previous year. There was some more information yesterday. Total insider selling hit a record $170 billion last year, up from $94 billion in 2020, according to SmartInsider.

Indicative in this regard is the example of Peloton. According to SEC filings, Peloton executives and insiders sold almost $500 million worth of their shares, and did so before the company's capitalization fell by more than 80% in 2021. So the old adage “corporate leaders and insiders sell their stocks near the highs” has been confirmed once again.

The main question that is now tormenting everyone is whether the stock markets will get off with a slight fright or whether the bubble will burst. In this light, there is a number of positive news for buyers from the Bank of Japan and the ECB, which have unequivocally spoken out in favor of maintaining ultra-soft monetary policies.

But the rest of the support is not very good. Reporting season is not yet able to extinguish the fears of the markets. Yesterday, for example, Netflix lost 11% after publishing quarterly reports. Profits are better than forecasts, revenues are within forecasts.
It would seem, for which the streaming giant was beaten. The answer, as usual, lies in the dynamics of the number of subscribers. And not even according to the results of the 4th quarter, but the company's expectations from the 1st quarter of 2022, which the markets did not like (2.5 million against last year's value of 3.98 million). In general, the reporting was not bad, but the markets were looking for a reason to sell and found it. So far, there is nothing to catch buyers with such moods.

In general, the month of January is quite interesting in terms of the local price pattern: sales in the last hour of trading became more frequent. So you can keep this in mind when making trading decisions, especially intraday trading.

Common sense seems to be returning to the Turkish Central Bank. Apparently, they have finally moved to the stage of accepting the fact of the existence of economic laws and the inexorability of their action, which even applies to Turkey. So the Bank of Turkey did not dare to lower the rate again, leaving it unchanged at around 14%. Not that this is a reason for buying the Turkish lira, but it is probably worth fixing part of the profits in its sales.