For the uninitiated, Sally is our Lady of the I-buy, our near real time alert service that calls attention to insider buying on the open market, which itself is often a harbinger of higher stock prices. You can read more about Sally here.
Last week Sally pointed out that Insiders were all over NR - Newpark Resources. This is not a typical series of I-Buys, where Insiders try to scoop up a severely undervalued stock that has gotten unjustly whacked in the marketplace. Here, Insiders have been buying what they consider a severely undervalued stock as it is racing to new highs....every day last week. In the past five trading days NR has risen from $6.50, to $7.68 this morning, or about 20%.
NR started 2006 at about $9.50 a share. Is it headed back that high, or higher? NR's Insiders seem to be weighing in on this question with their wallets. As for me, 4 out of 5 I-buys are day-trades for me, trading the pop that usually follows the public dissemination of Insider-Buys.
But about one of the five, I hang onto longer term, and that is the case here. As long as NR is headed up, up toward double figures, I'm along for the ride.