Insider Action Alerts

Want to know where the Insider action is?

Here's the place to find out!

Before using our Insider Action Alerts, please read the Important Disclaimer at the bottom of this page.

We also strongly recommend that you read the article "Insiders Today," just below. It will give you important tips on understanding Insider transactions, and our presentation of Insider data.

Sorry, but due to Jack's heavy workload these alerts are not currently available.

INSIDERS TODAY

As the availability of information on Insider transactions has increased, the interpretation of it has become significantly more difficult. This is mainly for two reasons.

First, since Insider buying is reported widely in the media, companies now use Insider buying as a source of publicity. Often, when the company hits a rough patch, Insiders buy stock to put up a front that executives are optimistic. Unmasking these, and the other false signals presented by Insiders, is something that requires a good deal of experience and analytical ability.

The other primary reason for the difficulty of interpreting Insider transactions today is that companies use stock options extensively as part of their executive compensation packages. This often results in executives having large amounts of stock that they can sell to augment their salaries. These options usually become exercisable for many executives at the same time, precipitating heavy Insider selling that does not necessarily indicate the company is in trouble.

The interpretation of Insider selling is even more difficult than Insider buying. Never buy, sell, or short-sell a stock based solely on raw Insider data.

Some of the many other factors that might influence Insider transactions:

  • Buying may be required or "strongly encouraged" by company policy. Requirements are usually, but not always, disclosed in the proxy.
  • Buying may be made with money borrowed from the company.
  • Buying may be subsidized so that stock is bought at below market prices.
  • Selling may be for many reasons, such as asset diversification, that do not indicate any pessimism about a company's outlook.

The information presented in the 4 Insider Action Alerts featured at this site is "raw." It has not been scrutinized to uncover factors that might mitigate, strengthen, or change the significance of it. This information should be considered only a preliminary step in the process of analyzing a company.

For stock recommendations based on fully analyzed and expertly interpreted Insider data, we recommend a subscription to Insiders PLUS. For more information on Insiders PLUS, or to subscribe, click here.

DISCLAIMER

The owners of this web site obtain information from sources that transcribe data from SEC filings on a daily basis. The owners believe the sources are accurate, but cannot guarantee the accuracy of the data. No warranty regarding the accuracy or usefulness of the data presented on this web site is expressed or implied.

Some Insider filings are subject to interpretation, and occasionally, some are filed erroneously. The owners of this web site make efforts that, in their judgment, are appropriate to clean and correct data which appears ambiguous or wrong. The owners cannot guarantee and do not warrant that their interpretation or change of any filing is correct.

The information appearing on this web site is processed and selected with the aid of computers. Computational errors could occur as a result of faults within the programs managing this data, or through the inability of the computer operator to monitor all functions and output, or for other reasons which the owners could not foresee or could not prevent by economical means even if foreseen.

The user of this site and the information contained on it assumes all liability for the consequences of any action taken as a result of his use of the information provided on this site.

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Copyright 2008 by Jack Adamo. All rights reserved.