Wednesday, July 13, 2005

Scorecard

Earlier this year I posted a series of Insider Buys, stocks that were being accumulated by company insiders. Although my preference is to be in and out of these in 1-4 days, they also may represent a nice longer term B&H strategy. Quickly navigating through my archives and bringing prices current, this is what the results look like if one were to have bought and held these picks.

Date Stock Price Current Return

1/10 PANL 8.03 12.18 52%
1/12 WIND 11.55 16.95 47%
2/4 CRUS 5.10 6.03 18%
2/11 EDGR 1.33 2.34 76%
3/2 MCDT 3.60 4.51 25%
3/2 CTLM 2.00 2.40 20%
3/4 TELK 18.10 16.39 - 9%
3/23 DNDN 5.70 6.05 6%


AVG = +29.37%
NASDAQ YTD = + 3.8%

7 comments:

Ronny said...

Allan,thanks for the update on these stocks.This strategy combined with a little fundamental analysis,can be a profitable intermediate term trading opportunity.
Thanks,Ronny

Anonymous said...

Allan,

I disagree. I think the risk you took to get a great intermediate return was well in excess of the profits made.

Ross

Allan said...

Ross, all other things being equal, between one stock with significant insider buying and one stock without, which one carries less risk?

A

Ronny said...

Allan,if you pro rate these returns on an annual basis,the results are even more impressive.
Ronny

Anonymous said...

Allan,

All things are not equal in the market.

Take CRUS for example, after you suggest a buy at $5.10, the price tanks to aroud $3.80 over the next several months, before recovering. Way too much risk. The "buy" was triggered by significant insider activity. From my view, one VP at the company buys about $97k of stock does not constitute a significant buy, especially with a market cap of a half a billion dollars. Why aren't other insiders buying as well?

I believe you take on too much risk for possible reward.


R

Allan said...

Risk?

What's that?

A

Ronny said...

Ross,if you have at least 5 stocks in your trading account in all different industry groups, you can control the risk.
Ronny