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Message: insiders: damn the torpedoes: buy, buy, buy!

insiders: damn the torpedoes: buy, buy, buy!

posted on Dec 02, 2008 08:39PM

there is at least one group of investors who think junior mining stocks are cheap, and are buying aggressively: company insiders. this report by gene arensberg says the ratio of insider buying to selling has hit an all-time high. i hope they know what they're doing.



Insiders: “Damn the torpedoes, buy, buy, buy”

Officers, directors and employees of companies can be the smartest money to watch. They are obviously in position to know whether or not their company has been mistreated by the market, whether or not their company has "things about to happen," whether or not their company is "onto something big," and, of course, whether or not their company is about to close their doors and pack it in.

In Canada, insiders are required to report all changes in their ownership positions in a timely manner. INK Research tracks those changes in insider ownership.

Nothing says "I think my company is cheap," louder and more believably than when the insiders are buying the common stock that management has already given them many options on for free. Nothing says more about what the expectations of a company's prospects are than when insiders are buying in large numbers of shares and in multiple transactions when the stock is down big (very good), or, conversely, when the insiders are selling in large numbers and often once the stock has been pummeled (very bad).

http://www.resourceinvestor.com/pebb...

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