Take It From the Top Insiders
One of my favorite new searches is looking for companies that have significant open-market buying by one of the two top executives. I stumbled across this market anomaly while playing around with Jon Moreland's Insider Insights database product, and I have done a lot of research on the idea.
As I discussed in a recent article, when the CEO or CFO of a company opens his or her checkbook and buys more than $50,000 worth of stock, it is a significant event. The majority of the time, the stock goes higher by the end of the year. More than 70% of the time, it tends to go up far more than the overall market, with an average gain of well over 50%. I have spent a lot of time on this concept recently, and I believe it not only makes a solid trading system but provides a catalyst for purchasing safe and cheap stocks....542 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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