Rich Get Richer

Do you want to see just how it works? Look below the fold:

This is a post and chart are from a market blog I frequent. The chart is Beazer homes which, with the housing slowdown is not doing too well. In fact, rumors are of a bankruptcy. Not pretty eh? Not pretty unless you're a member of the club (Click to enlarge):

Timing Award

I do not know whether the chapter 11 story is a rumor or a fact as BZH is now down a mere 20%. What I do know is that congratulations are in order to BZH insider Ian J. McCarthy who on November 14, 2006 exercised an option to buy 179,535 shares at $8.02 and on the same day unloaded all 179,535 shares for $43.07.

On April 17,2006 Ian J. McCarthy did the same thing with 13,149 shares. Ian J. McCarthy is the president and CEO of Beazer Homes. No doubt this was all part of a broader diversification strategy.

When the suckers buy, the insiders sell. Guess who's get's left holding the bag?