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Replying to TMF Tribe (message #5595):

My original post here had to do with analyzing VISX according to RM criteria to see how it's current situation might have been foreseeable. So far I don't see that anyone's pointed out how it might have been, however justified their criticisms of VISX may be.

Actually, none of what I've written here was intended as a defense of VISX -- I really don't know that story -- and yes, I agree it looks better if management owns a sizeable stake in the company it runs, but . . . etc. etc.

The problem here as I see it is that a number of replies in this thread have dealt only with VISX's insider trading as if to say: "There's the clear proof that VISX is no good." If VISX's stock was doing well -- which as far as I can tell was the case when prior insider trading also was occurring -- people would presumably not be making an issue of it. Moreover, since recognition of insider trading tends to occur 'after the fact' -- i.e., after the stock has already dropped -- it's not clear to me how it can be used as an investment criterion.

If the insider trading that's been mentioned here was accompanied by a poor earnings situation, that would make the picture -- and management's alleged bad faith -- much clearer. But from the figures I posted in a previous message, I don't see how that connection can be made.

If investment decisions could be made based on insider trading activity we could all just monitor insider trading reports and buy the most closely-held stocks. That's a screen I haven't seen yet at TMF.
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