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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jagernauth who wrote (11352)	6/1/2000 5:35:00 PM
From: OldAIMGuy	Respond to of 18928

Hi JJ, I like to see insiders owning significant amounts of the common stock of the company. Options are a good way to keep one's best employees and also is a source of deeper insider ownership over time. If the stock had been falling rapidly and there were no insider buys, that would be bearish. No insider buying is sort of neutral in a rising market. If insiders had been buying heavily during a rising market that would be very bullish. Insider selling is usually a bad thing as it relates to what the insiders feel is the relative value of their stock. However, if there's lots of options being handed out, then insider selling is pretty much a neutral event. If there were NO options being distributed to the employees/insiders and we saw selling going on that would be bearish. No selling with strong stock options would be bullish. Also remember that in Value Line, this data is always several months out of date. In this case it is only current through January. It would be best to check insider activity on the web as a final cross reference. Something that has occurred in the past is to have been performing my AIM buying and find out that the Insiders are also buying. It seems that when I'm performing my AIM selling near price tops I will also find out later that the Insiders have been selling at the same time. This single "coincidence" of AIM's activity gives me great pleasure (as well as profits!) and adds to my confidence in AIM. As an example, my ADCT AIM account was buying shares last August and so was an insider. Insiders were selling in December and so were AIM and I. (the Dec. selling was also related to options, so it's not as significant. This "coincidence" happens way to frequently to be random data. AIM is a good purchasing agent and happens to buy when company "insiders" feel it's a good idea to accumulate shares. AIM's happy to take profits and usually is selling when insiders feel the urge to sell off a few of their own shares. Nice to be in sync with the insiders. Best regards, Tom