To: Diamond Jim who wrote (48 ) 3/30/1999 8:05:00 PM From: Jim Bishop Read Replies (1) | Respond to of 199
<After all, why would the holder go through the paperwork of a Form 144 unless they were ready to pull the trigger?> Happens all the time. ----------------------- Tips For Using Insider Histories InsiderTrader's FAQ Insider Data Definitions Key To Insider Histories Disclaimer Insider data is an excellent first screen for selecting investments and a valuable piece of information to use when following investments you already own-but it is not a technical indicator. Here are some tips for properly using this important information flow. Insider buying is more significant than insider selling. There are numerous legitimate reasons for executives to sell shares. Buying a new house, sending kids to college, or simply diversifying assets are just a few. It is very common to see a lot of selling in a high-flying stock, and for that stock to keep rocketing. In contrast, there is generally only one reason executives buy their company's stock: they expect to make some money. Insiders tend to be early with their transactions. A multimillion dollar investment by several insiders in their beaten-down stock does not necessarily mean they expect it to recover next week. It is more an indicator of longer-term value. Insiders closest to day-to-day operations are the most important to watch. These include the chairman, president, CFO, vice presidents, and directors. Beneficial owners and large shareholders are generally codes for large entities or partnerships. These insiders can be responsible for the largest trades in terms of dollar values, but they are generally less significant because they are usually part of a corporate transaction where the individuals making the investment decision don't necessarily stand to suffer if the investment fails. It is always more significant when more than one insider trades. A "cluster" of activity gives a sense of unanimity of opinion regarding a company's prospects. Options-related trades are less significant than open-market transactions. It means a lot more when insiders invest their savings than when they simply reap the benefits of buying shares at below market prices and immediately selling them for a profit. This is why InsiderTrader's summaries only include open-market transactions. If you have other questions regarding the insider trading data filed with the SEC, ask us at insidertrader.com .