Rosie On Who The Market Buyers Are
Courtesy Tyler Durden at Zero Hedge
From this morning’s Breakfast With Dave:
Is it the private client? Not really — stock funds actually had net outflows of $1.33 billion last week, while bond funds enjoyed an $8.2 billion net inflow.
Is it corporate insiders? Well, heck no — Robert Toll (CEO of Toll Brothers) just disclosed that he sold a total 1.6 million shares of his company’s stock yesterday.
Is it buybacks? Not at all — in fact, S&P 500 companies bought back a mere $24.4 billion on stock repurchases in 2Q, down 72% from a year ago and the lowest in recorded history, according to Howard Silverblatt of Standard & Poor’s.
So who’s doing the buying? Very likely it is still a combination of program trading, short coverings and portfolio managers desperately trying to make up for last year’s epic losses.
The permabid is the new riddle, wrapped in a mystery, inside an HFT market enema.
****
In case you’re wondering, does Robert Toll know something? Zero Hedge informs us on that too. Apparently, he’s out of the JP Morgan circle and is going to feel really silly if the stock hits $29 next year.
Bob Toll Does Not Front Run JP Morgan
Yesterday Bob Toll sells 1.6 million shares of TOL. Today JP Morgan upgrades the stock, raising its recommendation from Neutral to Overweight, and stock price from $17 to $29.
What are the possible conclusions:
- Bob Toll is a hopeless fool who knows nothing about his company’s business prospects (unlikely)
- Bob Toll does not have access to the JPM research reports "huddle" (likely)
- A Rorschach test of JP Morgan analyst Michael Rehaut using the picture below reveals an answer of "a diamond in the rough" (near certainty)
Top Photo: Buying a book (David Livingstone) by The London Missionary Society, at Wikimedia.
