With all the gloomy Sales forecasts/news and falling consumer confidence, you would tend to feel that Recession is around. But hopefully this will bring some cheer to you all. Bloomberg has a piece on Retail industry executives buying their companies shares (Insider trading).
Limited Brands Inc. Chief Executive Officer Leslie Wexner and eight other executives bought a record amount of stock last month after prices fell to a four-year low. Dillard's Inc. director Warren Stephens made the biggest insider purchase ever as shares of the Little Rock, Arkansas-based department store chain headed for the steepest decline since at least 1980.
Cambiar Investors LLC, Royce & Associates LLC and Becker Capital Management Inc. say insider buying foreshadows a rebound. The last four times executives added to their holdings, the Standard & Poor's Supercomposite Retailing Index rose an average 9.9 percent in the next three months, topping a 6.2 percent average rise in the S&P 500 Index. Retail company officials increased their investments by $346.4 million since the start of November, according to data compiled by Bloomberg and InsiderScore.com.
"Our insider sentiment reading in retail is the most bullish we've seen,'' said Ben Silverman, 32, the Princeton, New Jersey-based director of research at InsiderScore, which tracks insider transactions for more than 350 institutional investors. ``The signal that we're seeing from retail insiders is that we're not on the brink of that recession and maybe they really believe that spending by consumers will pick up.''
My take, the retail stocks have taken some beating in recent time and with current low prices, there will be some upside to them. So, in a way, there is value to the Retail stocks.