1.) The value of a stock's supposed to reflect its earnings over all future time, not just current earnings. That's why stocks don't instantly fall to 0 when a company has a bad quarter. Earnings are at a low point now; a P/E of 118 implies that investors think they will get better soon. Whether they're right remains to be seen.
2.) Insider selling itself doesn't mean much. Many directors and executives receive a large portion of their compensation in stock; they're always selling, because that's how they get cash to spend. I'm curious how it stacks up to pre-crisis ratios though.
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Couple comments on those metrics:
1.) The value of a stock's supposed to reflect its earnings over all future time, not just current earnings. That's why stocks don't instantly fall to 0 when a company has a bad quarter. Earnings are at a low point now; a P/E of 118 implies that investors think they will get better soon. Whether they're right remains to be seen.
2.) Insider selling itself doesn't mean much. Many directors and executives receive a large portion of their compensation in stock; they're always selling, because that's how they get cash to spend. I'm curious how it stacks up to pre-crisis ratios though.