Chanos is a stunningly smart hedge fund manager who is famous for shouting out Enron first. His specialty is short selling and I really enjoyed this interview on an otherwise extremely boring TV segment with failed CEO Nardelli plugging Trump. Chants to my surprise is very interested in insider selling. Most stock pros dismiss insider selling as people sell for a lot of reasons but buy for only one. Chanos refines the approach to looking for groups of insiders selling. I would add to that look at insiders selling at lows or substantial portions of their holdings. Its a first screen of course.
Kynikos Associates Founder Jim Chanos on Valeant, SolarCity, Tesla and Sotheby’s.
Source: Jim Chanos: Be wary of companies with lots of executive turnover | Fox Business Video