RE:"And if insiders are not buying at these levels, business must suck pretty badly."
I've read an article long ago about the poor performance of insider trading. Maybe ERON or Bush or Cheney are exceptions.<gggg>
Gottfried, you make a good point.......as an indicator, inside trading is only as good as the people who are doing the trading. However, in addition to specific company buys, I look at insider trading to see what the overall trend in particular industries......are insiders mostly buying or mostly selling.
For an example, during late spring and early summer, insider trading in general dropped to some of its lowest levels in years. People were not buying nor selling. Then, starting in July, insider buying picked up dramatically in most industries with the notable exception of technology. With technology, the buying was more hit and miss, and was particularly a miss when it came to the chip companies.
Unfortunately, by the end of August, this spat of insider buying had dried up dramatically, suggesting that insiders are not as optimistic as they were earlier in the summer.
ted |
