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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.