Monday, March 26, 2007

Insider Trading

I just wanted to let readers know about this resource that I came across:

The site allows you to see which corporate insiders are accumulating or selling shares. Personally I don’t put very much importance on insiders selling as they could be selling for a number of reasons unrelated to the future of the company (ie- purchasing a new yacht, divorce, etc...) However, I believe that insider buying can be a powerful indicator of insiders’ opinion on the future of the company. It’s reassuring as a small investor to see corporate big wigs put their money where their mouth is. They live and breathe the company and if they think the company is cheap enough to buy then I definitely think it’s worth a look.


Canadian Money said...

I have noticed with penny stocks, on a few occassions, a large increase in volume with no large price increase. It usually occurs several days prior to some info release that causes the price to surge upward. I always think of that as insiders and friends buying shares.


Excellent post