Friday, August 26, 2005

IMNY

Very late on Friday afternoon it was disclosed the the CEO of I-Many Inc (IMNY) purchased $112K worth of IMNY shares on the open market on Thursday. He paid $1.55/share. This was the 9th purchase of IMNY shares by insiders since August 17th. These insider purchases were made between a low of $1.38 and as high as $1.55.

I bought a decent size chunk of IMNY just before the close, paying $1.49 and $1.50. The stock is trading in the after-market now at bid $1.52, ask $1.57. Last trade was $1.54 and 145K shares have traded on Friday.

I could have banked an easy 3%, but instead am holding over the weekend. The stock traded as high as $1.87 earlier this summer.

A

8 comments:

Anonymous said...

Allan,

Just curious, did you get out of this position this a.m. or are you still holding?

Steve

Allan said...

Still holding, Steve. Our research suggests that intital rallies off SEC postings peak on day #4(see NVAX!); nonetheless, I usually take most off the table on day #1. Since this came so late on Friday, I'm giving it a little more room then usual.

A

Greg Reiman said...

Hi Allan:

Do you count Thur 8/24 as day 1? Does it matter what time of day your service provides the alert in terms of counting the days? While your research suggests the pop will generally peak on day four, how do you determine your exit points? Or do you just let the market tell you when to exit as the chart flattens or falls? Can you tell me a bit more about your research regarding the timing of the tape's reaction to the significant insider buys? You have previously mentioned some research that suggests making these insider buys in the last hour of trading while the "day traders" are going flat for the day. Do you factor this into your entry points?

Questions, Questions; and I don't know if I am asking the right questions. Care to shed a bit more insight?

Thanks Allan

Greg

Greg Reiman said...

Oppps........ I meant to post the above comment under the NVAX thread.

Greg

Allan said...

Do you count Thur 8/24 as day 1?

Yes.

Does it matter what time of day your service provides the alert in terms of counting the days?

No.

While your research suggests the pop will generally peak on day four, how do you determine your exit points?

Very subjective, how much money have I made, if any, in what amount of time; general market conditions; boredom; fear; risk; uncertanty and greed.

Can you tell me a bit more about your research regarding the timing of the tape's reaction to the significant insider buys?

Yes......but then I would have to kill you.

You have previously mentioned some research that suggests making these insider buys in the last hour of trading while the "day traders" are going flat for the day. Do you factor this into your entry points?,

Can you repeat the question?

Questions, Questions; and I don't know if I am asking the right questions. Care to shed a bit more insight?,

Patience, grasshopper. All in due time. It's been a long (and profitable) day.

A

Greg Reiman said...

Hi Allan:

Here is a potential insider trade that might make some sense to you.

PWER was the topic of Gilders most recent newsletter and he provides a very good rational for investing long term in this company.

What he didn't mention is that the Stephens family of Little Rock, Arkansas are one of the major shareholders in this company. These people are smart money, real smart money.

If one could identify through an insider buying notification service like you use, when the Stephens family makes significant new purchases of PWER, either through Stephens Investments or their many family trusts, then I think that would be a good indicator of when to follow their lead and buy some too.

What do you think?

Greg Reiman

Allan said...

Greg, the Stephens family are "10% owners" and are readily identified by most i-buy services when they enter a transaction for PWER stock. My personal filters for daytrading will filter these 10% trades out, unless they are also an officer or director, but other services pick them up, so I still am made aware of them. ( I use more then one source for this information). Nonetheless, a good idea to keep an eye out for them, although they appear to have been Sellers this summer.

A

Greg Reiman said...

Hi Allan:

I traded in and out of this company in the Jun/July timeframe, making a modest profit and exiting just below $6/share.

Now I am looking for an indicator, beyond Gilder's enthusiatic words, something like a significant insider buying surge, to get back in. I looks to be moving back in the right direction, but I am hesitant and waiting for some insiders to lead the way. If not, I think I will stay out for now.

If you monitor this, please let me know if the Stephens family or other insiders start to buy again.

Thanks.

Greg