Big Insider Selling At First Solar (FSLR) & Cree Inc (CREE)

First Solar (FSLR) and Cree Inc (CREE) are two stocks moving in opposite directions, but they have one thing in common -  the Chairman of both companies, Michael Ahearn at FSLR and Chuck Swoboda at CREEl, have been dumping stock.  According to Street Insider, Ahearn has sold off 43% of his holdings or nearly $150 million just days after the company reported earnings.  A move like that doesn’t exactly exude confidence and the stock is suffering some more as a result today.  The stock did take out the $100 level at the open but has since recovered and is now trading closer to $102.

Mr Ahearn isn’t the only green energy company CEO to make a big sale.  Chuck Swoboda of Cree Inc began cashing out on Feb 19th following a  torrid run of his company’s stock.  This selling isn’t as alarming as the FSLR sale because it’s come after such a big run. Hey, I’d be cashing out too.  The roughly $4.5 million sale represents about 25% of his holdings.  It should also be noted that two directors and the COO have also sold several million dollars in shares over the past month.

For me, insider selling just raises the red flag.  I always base my buy and sell decisions on what the price and volume action in the chart reveal.  For FSLR, the chart has been weak for several months and that downtrend continues, but has support around 100.  If it can’t hold there, expect a test of $90.  As for CREE, it looks mighty toppy up here with a significant day of distribution on Feb 23rd.  This is still a great company, but in need of a decent correction.  For the aggressive trader, it’s probably a great spot to scale into a short up here.

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