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
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:
http://www.insider-monitor.com/resource.html
Academic Research on insider buying. You can do a search yourself.
http://deepblue.lib.umich.edu/bitstream/2027.42/79151/1/j.1755-053X.2010.01074.x.pdf
http://69.175.2.130/~finman/Orlando/Papers/AggregateInsiderTrading.pdf
Keep learning/studying and having fun.