Insider Activity – Does it matter?
TraderJoe posted about insider buying at eTrade group this morning. Apparently two insiders were responsible for the purchase of over $100,000,000 in stock. As the post said – that’s a lot of stock. Over the years I have tried to keep an eye on the insiders. There are many reasons why insiders sell stock – diversification, cash needs, children’s education, a home purchase etc. But there is only one reason why insiders buy stock in quantity – because they think it is going higher. On the heels of the introduction of the iPhone app the transaction makes sense.
Obviously, all of us at Financial Kudos embrace new apps like the new eTrade apps since they help in democratizing the markets and increase the need for more information, better information and information delivered quicker (like our Twitter alerts) to a larger audience.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
