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Roadfly Magazine
Issue Eleven
Table of Contents

Past Issues Index
Roadfly Magazine
Aston Martin at Detroit Auto Show
Issue Eleven
March 30, 2004
Live, From Detroit, It's the 2004 NAIAS!
Detroit Auto Show Awards
Keeping things in Balance
60 Seconds with Henrik Fisker
Windshield Dyno: The Beltronics GX2
Nissan Altima Facelift
WORK Wheels Introduction
Cadillac Merchandise
Not The Record To Be Proud Of
Open Wheel Racing in the USA: Big Changes
Bear Market in the Auto Business?
Coming Next Issue
NYC Auto Show

Bear Market in the Auto Business?, continued.
In the last quarter of the year, which ended Dec. 15, there were 74 insider transactions - 67 sales and 7 buys, according to an article in Automotive News that cites Thompson Financial, a financial services information firm based in New York. Compare that with the same period last year when there were just 31 insider transactions, 17 of which were buys and 14 sells.

What is disturbing is that this kind of trading could indicate that insiders think the value of the stock is headed south. "The extent of insider selling suggests that we may be nearing the end game in the bull market for auto stocks," said industry analyst Rod Lache of Deutsche Bank in New York, in an article in the Dec. 29 article. Of course, it could also mean that those same insiders simply need money.

The majority of companies in the automotive sectors - retailers, suppliers and automakers - have been on the rise since the market recovery in March. However, "the market takes 12 to 18 months to . . . bid up the share prices," said Craig Fitzgerald, a consultant with Plante & Moran LLP of Southfield, Mich., in that same article.

The only exception to the massive sell-off among U.S. automakers was Bill Ford, Chief Executive Officer of Ford Motor Co., who bought more than 2,600 shares to increase his stake in the company that bears hi name to 9.9 million shares.
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