CEO sells Novartis Stock

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Anonymous

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EPSTEIN DAVID R, Chief Executive Officer Planned Sale — $7.86 M 122,777 shares.

So Epstein is selling a boat load of shares as of 6-1-2011. Over 122K shares valued at 7.86 million. Was RT Right?
 

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Anonymous said:
Wow! How did you get this info?
Click to expand...

Go to any stock page such as the AOL financial page. Put NVS in the quote line and look for insider transactions. At the top of the page you will see Epstein's transaction. Lot of directors and others also unloading stock. Would like to know what percentage of his holdings this transaction was but I watch this stuff and rarely see such a big move by a CEO.
 








RT told me a while back that some other fat cat direcrtor or something unloaded like 30 million dollars worth of stock. I think it was in April or thereabouts. Yes i know the real one.
 




Here is the guy RT commented on to me some time back.

04/25/11 RAYMENT CARY R, Director Planned Sale — $34.86 M 612,695 shares.

dumped 35 million bucks worth of Novartis stock end of april.
 








HISTORY REPEATS ITSELF (just substitute NVS for Enron):


The theory behind granting stock options is that it aligns executive interests with shareholder interests. The theory holds so long as the executives hold on to the shares. Once they have sold them, there is no longer a commonality of interests. In Enron's case it seems the executives were too interested in boosting the share price, at least for a while--hence the use of off-balance-sheet partnerships and other practices to hide debt and give needed jolts to quarterly earnings.

But at the end of the day, many executives at Enron had become so rich so fast that there was no reason to stick around once the ship started to take on water. Skilling quit abruptly when the stock dived. So did Rice, Clifford Baxter (Enron's vice chairman and an apparent suicide) and Lou Pai (chairman of Enron Accelerator). Several other top executives quit in 2000. Their interests were by then completely divorced from those of the shareholders and the employees. Unlike ordinary shareholders, they have no risk nor do they suffer when the share price falls; they simply gain more when it goes up.

Even if Enron had never collapsed, the compensation plan was disconnected from reality in so many ways. It was, as can be said about so many things regarding Enron, a foolish thing well done.
 




The reason that the CEO or Directors are selling their stock now is because they can not trade shares within a cetain number of days before the end of the quarter. June 31 will be the end of the quarter and the end of the first half of the year. Traditionally the half year point is really hard on companies when they miss the analyst expectations in earnings, so it make sense to trade shares if the share price is relatively high because with the soft market we are seeing even very good companies are taking a beating when they miss earning expecations by even a few points. If I were the CEO I would be doing the same thing. 122K shares at any price plus or minus $10 is a lot of money, so the safe bet is to sell before the EOQ and EOH Year.
 




Anonymous said:
The reason that the CEO or Directors are selling their stock ......................
Click to expand...

Blah Blah Blah, hey jerkoff, Google & Apple execs aren't dumping theirs . Wonder why ?
Cuz those companies aren't falling off the patent cliff like Diovan , Gleevex , Exoforge laden( to name a few) aka Nofartus Fartmaceuticals

Rats always abandon sinking ships !
 




All public companies post the sell of sold stock by their "c-Level" people. And to say this is a big amount of stock- would depend on how much he has to start with. In fact you can even have the company website notify when a transaction like this happens - its not hidden info.
 




Also tax in switzerland works so that when you get granted shares or options you are taxed at that point and not when you exercise them. So, if David got granted a bunch of shares back in feb or march then he will have an instant tax liability which he may want to settle by selling some other shares.....

....just sayin.
 








Anonymous said:
Blah Blah Blah, hey jerkoff, Google & Apple execs aren't dumping theirs . Wonder why ?
Cuz those companies aren't falling off the patent cliff like Diovan , Gleevex , Exoforge laden( to name a few) aka Nofartus Fartmaceuticals

Rats always abandon sinking ships ![/QUOTE


those companies made thier employees millionaires with stock grants.....only the top executives hold that distinction at Novartis. Heck, as a field rep you can work here for 25 years and not even make the $$$ ol David has paid in this one transaction in taxes. Yep, we work for a $60 billion company.
Click to expand...
 




everyone should be selling NVS stock. If you hold Novartis stock fund in your 401k you should be out of it. If you hold stock options sell.

do some basic math on the debt of the US, Greece and Japan. Look into which banks are at risk. No one has paid taxes in the world for years and now there is no middle class to buy the goods a company makes. No way to pay the debt back.

People in brazil and russia cant pay $90 a month for diovan like they do in the US. This is were novartis thinks its growth will come from. I dont think so

Sell your stock.
 












  • RTBKPL   Jun 19, 2011 at 10:38: AM
Mr. Rayment came from Alcon and obviously scored some major stock as a result of the Novartis involvement. As previously stated In the issue of employee stock options in Switzerland, they are immediately taxed. Many other countries tax these options later, when the options are sold which then include the capital gains. It may have been that Mr Rayment needed to unload some stock to pay his taxes, it would be interesting to know just how much he profited form the Novartis/Alcon deal. He has made other planned sales since the largest of his transactions. Insiders are required to follow certain guidelines in the sale of stock which would preclude acting on inside/confidential information.

What I find interesting about the sale by Mr. Epstein is the timing. He sold on 6-1-2011. Note if you will that the stock peaked on 5-31-2011. This was a planned sale though and a good question would be what percentage of his stock was sold? For insiders to sell stock, they must follow certain guidelines.

Mr Epstein and Mr Rayment are insiders. They would have confidential information not available to the general public. The SEC states that an employee may not trade stock if they posses confidential information. So for an insider to trade stock they must comply with certain guidelines.

They can create a 10b5-1 trading plan in which they tell a broker to buy or sell stock based on preset dates or conditions. Once the plan is established they cannot change it. Typically a new plan is established yearly which means that even if the insider gains information that could impact the stock price the plan prevents them from acting on it.

Another way an insider can trade stock is during an open trading period. The company can declare an open trading period and all employees are allowed to trade stock. The limitation again is that if you have confidential information, you are still prevented from trading.

It would seem that Mr. Epstein “planned” in advance to sell these shares on 6-1. How fortunate to have done so the day after the peak. am NOT inferring anything here other than I would like to have his intuitive sense of timing in the sale of stock.

If I had stock on 5-31, I would have sold it too. I am still surprised that stock analysts are touting Novartis stock as a Strong buy. There is one analyst who sees it as a strong sell. It would be interesting to have a debate between the two extremes but that will not happen. While these sites show the planned sales, I would be more interested in their planned BUYS. This does not appear to be made available to the general public. I suspect that buys might be rare among the insiders considering the number of shares they acquire thru options.

Never let the bastards get you down.

RTBKPL
 








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