Thursday, March 16, 2006

Insider Buying

The table below shows the results of five independent studies on insider buying. It shows the investment returns generated from stocks showing significant insider buying compared to the general market. The only criteria in these studies was that two or more insiders bought company stock and that generally more insiders were buying then selling. I don't know what the hold period was in these studies, but I can safely guess were talking about months or years, instead of my favorite, minutes.

In any case, the edge that insider buying gives to stocks is what is important, and it's clearly set out below:


5 comments:

Ronny said...

Allan,thanks for posting this.If I had to choose one event or indicator to predict the future price of a stock,this would be it.I am still trying to determine the optimum holding period.
Ron

Anonymous said...

Allan,

This is so true. Which service do you recommend for insider buying alerts? Thank you. Holly

curt504 said...

Coincidentally my IRA brokerage Fidelity mailed a write up to this point and gave a screen URL. Some playing and these stocks are the result. Their charts look interesting and going the right direction. LOL more than I can say for XDSL and PTSC. But all will come out in the wash I feel.

Good luck. curt

MEMY ALAN EMA ZHNE NOVT

Anonymous said...

DIGL up 30% yesterday, should go up friday with AVNX, FNSR down as a result of options trading.

I have been tracking the stock for the past 2 weeks, since AVNX and the others started to climb.

Made a bunch with NVAX, there's still room for that one IMHO, the govt. has not announced the new Bird Flu research grants.

J.

Allan said...

Holly, I've listed several in my archived blogs, circa last fall. But the best service for getting easy picks for a reasonable subscription fee and the best bang for the buck for holding over a few months is:

http://www.insiderbuying.com/

A