Is Bigger Better?

While suffering through a relatively quiet market day Monday, I decided to test an idea. I wrote in Columnist Conversation about what happens when large beneficial owners of a company increase their stake. I found that 75% of the time, the stocks rose by an average of 37% between the purchase date and last Friday's close. The losers averaged a loss of 17% for a net gain of more than 23% per target company. This test needs more work, but the initial results are interesting.

The list of companies meeting the conditions interests me. Some are being accumulated by activist funds or potential strategic partners and they could see deals or a restructure in the future. It's an interesting list of potential trading or investing ideas that could outperform, regardless of market direction....539 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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