Uncategorized

NYTimes: Insider trading still good indicator for stocks

close

Email a Friend

As a follow-up to The Anti-Galleon Model: 4 resources to insider trade — legally, I just wanted to comment on a NY Times article today by Mark Hulbert called More often than not, the insiders get it right.  The article tracks how insider selling tracked during the downturn in late 2008 and how insider buying accompanied the pickup in 2009.

Couple of things here:

  • Insider selling abated somewhat during a tough January 2010, leading to what some auger as merely a small pullback in the market
  • While typically pretty accurate, insiders “failed to recognize the top of the bull market in October 2007, and didn’t anticipate the depth of the decline that followed.” (according to Hulbert)
  • According to Prof. Seyhun, the axe on insider trading, insiders have been correct far more often than they’ve been wrong, and this is still likely to be the case.

I like aggregate insider buying/selling activity to help forecast market movements but I think it’s even more useful when looking at individual securities.  My gut tells me that seeing the CFO buy shares hand over fist in a small-cap company is more useful that knowing the sell-buy ratio, as computed by Vickers, is 3.51.

0 comments on “NYTimes: Insider trading still good indicator for stocks”

Events, Uncategorized

New speakers announced for Tearsheet’s Resilience Conference

  • The Resilience Conference will celebrate the people, teams and companies successfully navigating through this crisis.
  • 3 new speakers have just been announced.
Tearsheet Editors | June 25, 2020
The Customer Effect, Uncategorized

Inside Yielders, the UK’s first regulatory compliant Islamic crowdfunding platform

  • Yielders, an equity-based crowdfunding platform for real estate, is the first Shariah-compliant financial technology company to get regulatory approval in the U.K.
  • The platform's user base is 35 percent non-Muslim, some of whom may be attracted to the ethical investing principles.
Suman Bhattacharyya | May 18, 2017
Sponsored, Uncategorized

FinTech is changing your life, and you don’t even know it

Brandeis University | May 01, 2017
Uncategorized

FinTech Week: By the numbers

  • Empire Startups' inaugural FinTech Week begins today in New York
  • In preparation for 25 forthcoming events over four days, here's a breakdown by the numbers.
Tanaya Macheel | April 24, 2017
Uncategorized

Hi 5! The top five fintech stories we’re following today

  • Retailers may be looking into the future as opposed to implementing for today.
  • Banks are working to get more people comfortable using mobile apps.
Zack Miller | February 06, 2017
More Articles