Insider trading — particularly when clusters of executives are buying their own small-mid cap stocks — can be useful in forecasting future stock movement (in this case, up).
The Motley Fool ran a really good article detailing all the insider purchases occurring in the housing sector (or ancillary sectors that might rise in sympathy with a rebound in housing).
| Company | Industry | Insider Trend |
|---|---|---|
| Cousins Properties ($CUZ) | Real Estate Investment Trust | Insiders like Lawrence Gellerstedt (CEO) and Taylor Glover (Chairman) bought $709,733 worth of stock between 8/12-8/24 |
| Winthrop Realty Trust ($FUR) | Real Estate Investment Trust | Insiders like Michael Ashner (CEO) and Lee Seidler (Director) collectively bought about $2.46M worth of stock between 8/13-9/27 |
| Gordmans Stores ($GMAN) | Home Furnishing Stores | Insiders like Debra Kouba (Officer), Richard Heyman (CTO), Jeffrey Gordman (CEO), Johanna Lewis (Officer), Michael James (CFO), and Michael Morand (Officer) collectively bought $532,221 worth of stock between 8/11-9/27. |
| Lennar ($LEN) | Residential Construction | Sidney Lapidus (Director) bought $97,500 worth of stock on 8/19 |
| La-Z-Boy ($LZB) | Home Furnishings & Fixtures | Edwin Holman (Director) bought $20,568 worth of stock on 8/31 |
| MFA Financial ($MFA) | Real Estate Investment Trust | Insiders like William Steven Gorin (President), Robin Josephs (Director), and Timothy Korth (General Counsel) collectively bought $136,778 worth of stock between 8/5-8/26 |
| Select Comfort ($SCSS) | Home Furnishings & Fixtures | Jean Michel Valette (Director) bought $130,000 worth of stock on 8/27 |
Source: 7 Insider Executives Betting on a Housing Recovery (Motley Fool)
photo courtesy familymwr