Thought this article interesting--any thoughts?
http://www.marketwatch.com/news/sto...54D-63DA-43BA-B12A-B4F61040F53A}&siteid=yhoof
http://www.marketwatch.com/news/sto...54D-63DA-43BA-B12A-B4F61040F53A}&siteid=yhoof
insider buying
- Thread starter DOGS THAT BARK
- Start date
DTB insider trading can be an interesting indicator, though as with many items sometimes more details are needed.
for example some insiders are granted options, to buy the stock much cheaper levels, not a bullish sign. also some companies have or put in rules that an insider (ie. board member has to hold a certain amount of stock.) the most bullish signal is probably when an insider buys a large amount (far more than usual ) at market prices (without any options such as stocks granted or prices they can sell at).....
do not pay much attention to the insider reports (probably a mistake) because some large insiders have been wrong and have had a large positon when the company tanks....
one time in the 90s an officer with Nortel, actually shorted the stock, (allowed in cdn. do not believe it is in US, though there are ways they can get around this), NT it was explained away that this way the officer was going to get options in the next few months (less than six months) so the short was covered (going to be from the stock granted)... still was shocked that the insider could not (did) have enough faith just to wait the few months....
was bearish on Nortel until it started going on a run, bought in, made a good return, however sold quickly when the news hit.....should have known just from that,...when an insider shorts his own stock....SELL
thanks
selkirk
for example some insiders are granted options, to buy the stock much cheaper levels, not a bullish sign. also some companies have or put in rules that an insider (ie. board member has to hold a certain amount of stock.) the most bullish signal is probably when an insider buys a large amount (far more than usual ) at market prices (without any options such as stocks granted or prices they can sell at).....
do not pay much attention to the insider reports (probably a mistake) because some large insiders have been wrong and have had a large positon when the company tanks....
one time in the 90s an officer with Nortel, actually shorted the stock, (allowed in cdn. do not believe it is in US, though there are ways they can get around this), NT it was explained away that this way the officer was going to get options in the next few months (less than six months) so the short was covered (going to be from the stock granted)... still was shocked that the insider could not (did) have enough faith just to wait the few months....
was bearish on Nortel until it started going on a run, bought in, made a good return, however sold quickly when the news hit.....should have known just from that,...when an insider shorts his own stock....SELL
thanks
selkirk
Agree 100% on all counts--sometimes will look at insider trading but look more to insider ownership--the bigger % -the better in most cases IMO.
In article I thought it strange that insiders appeared to be optimistic with a corporate unfriendly gov possibly taking over in Nov.
Trying to stay out of U.S. market despite what appears to be some bargins--did buy some BAC yesterday however--which I'll prob regret
In article I thought it strange that insiders appeared to be optimistic with a corporate unfriendly gov possibly taking over in Nov.
Trying to stay out of U.S. market despite what appears to be some bargins--did buy some BAC yesterday however--which I'll prob regret
DTB another way to play the financials would be the index XLF, probably XLF will do roughly what BAC will do on the upside and there is less company specific risk...they will probably move as a group.
only own WFC common shares small play, in US, financials, will sometimes look as GS.
have a large play on WFC 25puts (1.50) hope that works out.
also started to buy a few bank preferreds, most of these large US banks and brokerages have issued preferreds on some very good terms....though still a risk getting over 7.5% sometimes closer to 8% and with a convertible option into common shares.
if there is a sharp rally probably better off in the common shares, however a little more downside protection on the preferred if things go bad...own a JPM preferred.
BAC will trade on how great or poor the Washington Mutual acquistion is....
as for politics believe most of the election talk is just that, talk. tiime will tell.
was a news story in Canada when there was a note from the dem candidate (that was sent to the cdn. government) just saying this re-opening nafta is not serious.
not sure why the US would open Nafta is working well, for Canada and the US.... and pointed out often the US may have some demands however Canada would make new ones to..... would be just a mess. also the US companies, are treated like CDn. companies,...this may change if it was re-opened, sometimes have to be carefull what they wish for, they just might get it.....
the main risk to the market is the resources going higher and even out of control if the US fed stops cutting and oil,ect, eases, the market can rally from here..... if oil shoots higher then probably the bear stays much longer.
thanks
selkirk
only own WFC common shares small play, in US, financials, will sometimes look as GS.
have a large play on WFC 25puts (1.50) hope that works out.
also started to buy a few bank preferreds, most of these large US banks and brokerages have issued preferreds on some very good terms....though still a risk getting over 7.5% sometimes closer to 8% and with a convertible option into common shares.
if there is a sharp rally probably better off in the common shares, however a little more downside protection on the preferred if things go bad...own a JPM preferred.
BAC will trade on how great or poor the Washington Mutual acquistion is....
as for politics believe most of the election talk is just that, talk. tiime will tell.
was a news story in Canada when there was a note from the dem candidate (that was sent to the cdn. government) just saying this re-opening nafta is not serious.
not sure why the US would open Nafta is working well, for Canada and the US.... and pointed out often the US may have some demands however Canada would make new ones to..... would be just a mess. also the US companies, are treated like CDn. companies,...this may change if it was re-opened, sometimes have to be carefull what they wish for, they just might get it.....
the main risk to the market is the resources going higher and even out of control if the US fed stops cutting and oil,ect, eases, the market can rally from here..... if oil shoots higher then probably the bear stays much longer.
thanks
selkirk
