What's The Deal With Insider Trading?

Isn't It Illegal?

Glenn H. Epstein is the CEO at Intermagnetics General Corporation.

Leo Blecher is an officer also at Intermagnetics General Corporation.

Epstein, Blecher, and some of the company's officers just recently bought over 140,000 shares of their company stock at $11.78. 

Just fourth months later, Intermagnetics General's stock was trading at $22 - 86.7% return and against a falling market!

This regulation created the ultimate stock indicator that works regardless of rising or falling market -- treat it as a blessing from the government

Or you could look at it this way...

It is so predictive that the government has to regulate it.

Some would say they are bold headed because Intermagnetics General was trading at its 52 week low.  However, once you look at their past records, you would say different.

"9 out of the 9 past insider buys by Mr. Blecher, stocks were higher afterwards with a 3 month average return of 125.83%!!!  And 8 out of the 8 past insider buys by Mr. Epstein, stocks were higher with a 3 month average of 138.51%!!!"

Quite an impressive record.  But they are not the only ones.

The chairman of Select Comfort, Patrick A Hopf, bought 48,500 shares of its company stock at the market price of $1.50. 

Two years later, Select Comfort almost multiplied eight fold trading at $12.13 - a 708.66% return!  That's $8,086.60 for every $1,000 invested!

Then there's Myron W Wentz, the President of Usana

"Two years later, Select Comfort almost multiplied eight fold trading at $12.13 -- a 708.66% return!  That's $8086.60 for every $1,000 invested.

 Health Science, who bought 30,100 shares at $2.447.

Just ten months after, its stock price soared to over $16 per share - a  whopping 577% gain!

Would you want to put your money against investors who are always right?  I didn't think so.  You and I would probably rush to invest our money along with theirs.


Where Does The Insider Trading Data Come From

According To Forbes: "One of our favorite bullish indicators is insider buying"  

According To SmartMoney: "... portfolios based on insider activity have impressive results. And money managers pay hefty fees to firms that track insider buying and selling."

U.S. Securities and Exchange Commission

According to U.S. Securities and Exchange Commission: "Many investors believe that reports of directors' and executive officers' transactions in company equity securities provide useful information as to management's views of the performance or prospects of the company"

 These eye-popping investments by those executives are called "insider trading."  But you are probably going to say you know about insider trading already, right? 

It's probably not what you're thinking about.

When people hear the term "insider trading", most think about the recent criminal charges against Martha Stewart.  They think about the huge fines and jail times that have been charged upon the rich company executives....

Well, that is when they don't "play-by-the-rules."  Let's clear things up a bit by stating the official rules.

Insiders are required to report any changes in beneficial ownership of shares in a public company to the Securities and Exchange Commission.  Moreover, The Sarbanes-Oxley Act of 2002 shortened the reporting period to 2 business days and that all reports must be filed electronically.

Failure to do so in a timely fashion will result in fines up to $2.5 million dollars and up to ten years in prison. 

So, you see.  It is perfectly legal for insiders to buy their own company stock and profit from it as long as the forms are filled out and filed. While form 4 means trouble and hassle for those insiders, it spells wonder for you, the individual investor. 

Form 4 contains the most accurate of all stock indicators if deciphered correctly.

According to the SEC: "Many investors believe that reports of directors' and executive

 officers' transactions in company equity securities provide useful information as to management's views of the performance or prospects of the company."

 

There is really no better buying signal than company insiders buying loads of their own company shares.  After all, who knows the company's inside workings better than insiders.

 

This is probably the best stock indicator to individual investors, compliments from the government.

This regulation created the ultimate stock indicator for you that works regardless of a rising or falling market -- treat it as a blessing from the government.  Or you could look at it this way...

It is so predictive that the government has to regulate it.


If It Got Any Easier, They Might As Well Hand You The Money

The executives at Autozone suddenly started buying large blocks of its company shares at around $22. 

Specifically, it started with Timothy D. Vargo, President; Charles M. Elson, Director; and a few other executives.   They snatched up half a million dollars worth of company stocks just before it started to take off.

Some would say these insiders are bold headed because their stock was trading at its 52 week low.  However, once you look at their past records, you would say different.

"9 out of the 9 past insider buys by this COO, stocks were higher afterwards with a 3 month average return of 125.83%!!!  And 8 out of the 8 past insider buys by this CEO, stocks were higher with a 3 month average of 138.51%!!!"

Eighteen months later, Autozone was trading at $80 a share.  That's a 263% return -- while the market tanked!

During that time, Autozone had aggressively opened new stores across the nation. 

The company insiders know about the plans within the company that the outsiders, especially the individual investors, could never know until it is too late.

But let me tell you this, it doesn't matter to you!

You don't have to know about the actual events that will take place within the company.  You just need to deduce from the insider trading activities whether the particular stock will skyrocket or not. 


The 'Real' Insider Trading That Matters ... To You

Now.  This doesn't mean you should buy a company whenever insider trading activity is detected.  In the real world, things are never that simple.

There are insiders who are buying to make money.  There are insiders who are buying to show colleagues they are really part of the team.  Then there are insiders who are buying to cheat the record.  Finally, there are everybody else.  Since most insider trading activities are really just fakes, Global Investor Alert is put in place for you to consistently pick out the real ones.

It reveals to you the real insider trading activities ... The real opportunities from which you will make boatloads of profit along with the insiders.

  • Autozone -- 263% Profit

  • Usana Health Science -- 577% Profit

  • Select Comfort -- 708.66% Profit

  • Intermagnetics General -- 86.7% Profit


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