From Businessweek:
"How should you follow Seyhun's findings? Under SEC rules, several classes
of insiders, including company executives, outside directors, and large
shareholders who own at least 10% of the stock, must disclose trades.
Seyhun found that trades made by top executives with companywide
responsibilities, such as chief executive or chief financial officers,
outperformed the broad market by the widest margin, 5% over a 12-month
span. Lower-level executives and directors did somewhat worse, while big
stockholders' moves beat the market by just 0.7%. So if you care to mimic
insiders' trades, focus on those of top executives. Among them, ''cfos are
best,'' says Robert Gabele, research director at CDA/Investnet, a major
supplier of insider-trading data. ''They know the numbers,'' he adds, and are
less publicity conscious than chairmen and ceos about their trading."
Joy Covey are you listening????
Glenn |
