This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mozilo Cashed Out at Top of Market

Fair enough.

But isn't it remarkable how insiders always seem to choose the perfect moment to do this? I've already written about this phenomenon at other big housing-related companies like the homebuilder Toll Brothers (TOL - Get Report).

After you deduct his stock option costs, Mozilo pocketed $338 million in profits from selling shares while times were good.

Meanwhile, the investors who bought those shares have already lost $200 million.

That's 47 cents on the dollar.

This wasn't wealth creation. This was just a wealth ... transfer.

Mozilo's personal sales continue. He sold more stock just two weeks ago.

He's certainly not doing anything illegal. His trades are made through an executive "10b5-1" stock selling program. For the uninitiated, that means he decides many months in advance to sell the stock.

The sales are then carried out independently by a broker, over a period of time, and without any further input by Mozilo.

It's a common and sensible system that is supposed to let executives sell shares without running afoul of insider-trading laws.

Yet Mozilo's most recent sales were part of a program he set up as recently as last December, and amended in February. By that time, of course, the mortgage market was already falling apart.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $15.75 0.00%
TOL $36.89 0.88%
AAPL $109.50 -1.16%
FB $92.47 0.08%
GOOG $639.16 -0.50%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs