Thursday, October 23, 2008

Insider Buys as an Indicator

I believe that insider buying, as well as institutional buying, is as good of an indicator as many technical ones. Setting aside stock repurchase plans often used to reassure investors and support stock pricing, one can see the purchase of an equity by the owners of that equity as a very bullish act since those on the inside often have privy to information that may lead them to think the stock is headed higher. Also bullish are mutual funds accumulating a position in a particular stock. Fund managers definitely buy what they think is going higher. You can see insider purchases on several websites including Yahoo Finance, and institutional buying can be seen at www.thebuylist.com.

Have a good one,
Roger

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