Tuesday, February 14, 2006

Stock Buybacks

This is particularly for Ron who has been doing some short-term trading based on announced stock buy-backs. Victor Niederhoffer had done some longer-term studies that show a statistical edge to buying stocks that are subject to company buybacks. His findings, are that "Buybacks Are Good."

While you're looking around Niederhoffer's blog, be sure to read his Valentine special:

Thought for the Day: 10 Things Happy Couples Do, by Mark Goulston

Back to trading,

A

4 comments:

Ronny said...

Allan,thanks for posting the article.This confirms another study I read on-line where they looked at buybacks up to 4 years after the fact.The stocks on average beat the market.I will go back and look at smaller time frames to see if a short term trader can exploit this strategy.
Ron

curt504 said...

Ronny and Allan, I'm slowly piecing together what I'm hoping will be a high probability trading strategy based on daily pulls from sec insider buy events.

I'd like to dialogue with anyone on this subject and hear your tips, URLs inputs?

FYI, I'm not currently using such a trading machine but would like to move 1/2 my trades into such. Perhaps use in the money calls to add leverage assuming Ronnys back testing finds that there are ways to filter the insider buy daily events?

Allan once posted 'tips': low price stocks (<$5) and only principal officers [president, vp].

Any other thoughts?

Thanks, curt

Allan said...

Curt, there is a lot in my early blogs about how I trade insider filings. Also, there is a lot of good information (for free) at sites like Insider Cow, Insider Scoop and Form4 Oracle. There is a learning curve, but its easily mastered adn you can start making money right away whiel you are learning. For a B&H type Insider service, I like http://www.insiderbuying.com/

Good luck...Insider buying is the closest strategy I've found to a sure thing in this business.

A

Ronny said...

Curt,feel free to e-mail me at:met61@aol.com.
Ron