Wednesday, April 04, 2007

Boeing's Conflicted Future Insider Executives Sell

Boeing (NYSE:BA) announced that they have 514 orders for the 787 Dreamliner the next generation passenger aircraft. Airbus is in a shambles and will not present a credible threat for quite some time. Nothing but blue sky and smooth flying one would think.

The stock has rewarded investors very well. In early 03 you could have acquired shares in the mid $20's. Now the stock trades around the $90 level. Thats quite the run and some investors could not be blamed for wondering about the future and what is truely left.

Institutions have been lightening their loads with a mild net distribution effect. At the $90 level institutional interest would trump retail activity. But check out senior insider trading. There has been a very distinct sales process as options are exercised and the famous non open market sale kicks in. The senior guys do not need the cash. But it seems that almost every transaction is a disposition.

James McNerney Jr., Laurette Koellner and James Albaugh have all consistently and exclusively exercised and disposed of very large blocks of stock since the new year. This trio are the three top executives of course and their insights have to be the best there is. If they and other executives are personally arriving at the financial departure lounge with this magnitude of disposition then you should assume guidance has been given.