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To: Jeffrey L. Henken who wrote (108)	7/27/1998 12:44:00 AM
From: Druss	Respond to of 253

Jeff--Insider buying is normally a bullish sign. The only real reason for an insider to buy is greed. In theory an insider should know the company well enough to know that buying is a good idea. Insider selling is more difficult to read. Insiders often sell for personal reasons that have no bearing on the companies potential. However wholesale insider dumping is something to be aware of. In particular look for a large number of insiders filing to sell a large number of shares in a short time span. All the Best Druss

To: Jeffrey L. Henken who wrote (108)	7/27/1998 1:22:00 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 253

Jeff, Re: Insider buying As Druss pointed out in his response, there are many reasons for an insider to sell, but only one reason for him/her to buy. I also look for insider buying. But there are a few caveats to watch for. 1) Insiders are notoriously early in their buy decisions. They usually buy at the first sign of something good happening, even though that event may be six or nine months away. So when you see insider buying, you don't have to run out and mortgage the farm. You can take your time, do your proper DD and WHEN THE TIME IS RIGHT, make a purchase if you so desire. Yes, doing it slowly you may miss an opportunity or two, but the ones you catch with little "dead money" time involved will more than make up for the ones that got away. 2) Insiders most definitely do not want to appear as trading on insider info, so they tend to buy early and perhaps (shall we say) "procrastinate" a bit on the good press release, thusly putting some time between their purchase and the good news. The same principal works in reverse. When they sell, the news is held back as long as is feasible. 3) The insider who is buying also makes a difference. If you're looking at the CEO or the CFO, that's great news. No other people in a company know better than those two how the company's prospects look. If you're talking a Director or a private investor or an institution, still a good sign, but not as good as the CFO or CEO. Lesser officers, such as the COO or an array of VPs is only a great sign when they do it in large numbers. That is, a large number of VPs buying a larger than expected number of shares. KJC