March 3, 2008

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After a couple days of persistently collapsing stock prices, MF Global (remember them? They touted the wheat market on Tuesday and lost $141 million in the wheat market on Wedensday) has bounced back, up about 13% so far this morning.

And here's why: every conceivable insider has been buying shares in the mid teens. Their recent filings list shows no fewer than sixteen sets of transactions -- their CEO alone bought about $800,000 worth in a single day. Good news: the executives believe in the company. Bad news: 1) how did they have that much extra money lying around, and 2) a few days after the company lost more than 10% of its equity due to a single trader, did their CEO really have nothing better to do than make 30 separate trades in his company's stock?

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