The Explanatory Power of Insider Buying

Don’t forget to FOLLOW the MONEY.  What are insiders doing?  The video of Mark Hulbert on insider buying is interesting for two reasons:

Insider buying has more explanatory power on long-term (greater than one year) stock returns according to Professor Nejat Seyhun.   Also, note that when insiders do NOT sell when prices fall that is a bullish sign. Insiders seem bullish.

Video on Insider Buying!A8DB6956-E0A4-462E-AFD4-CB3B74106EEC

Bullish Insiders Point to One-Year Stock Gains Dec. 6, 2011
Market insiders (such as executives) and their activities may have greatest sway as an indicator at the one-year horizon, not the three-month or six-month time span, according to Mark Hulbert. Laura Mandaro reports.

Resources for Studying Insider Buying

A resource for tracking insiders and learning more:

Academic Research on insider buying. You can do a search yourself.

Keep learning/studying and having fun.

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