I forget the name of the study but in the 90's some firm studied 20,000 U.S stocks over 30 years.
When the company has inside OWNERSHIP and THEN insider buying.
84% of said stocks outperform the market averages over the next 6-12 months.
Just remembered The firm's name....(https://williamoneil.com/data-services/quantitative.aspx#proprietaryRatingsRankings)
The research report cost about $3,000 (back then) but as I worked at the brokerage firm I got to read it for free and I've never forgotten what I saw. When I see insider buyer after all my other stuff...I just buy and buy. I can't ever remember having a lose.
Buying is way different than stock options that are free...the insiders are putting their own saving into the company. You better believe they've check everything out.
If anyone has ever used O'neil's charts...They show insider buying by putting a + at the bottom. When you get 2-5 buys over 1-2 months it means only 1 thing...
INSIDERS know the full story on everything that's going on (as it's their job)...They'll sell for many reasons. However...
Insiders ONLY BUY for 1 reason...because THEY KNOW the stock is going UP.
As you all know...Australian board directors will often not own any shares or if they do...a token 5k to 10k worth. Alex has only been with AGY a few days and he's buying like mad WITH HIS OWN MONEY. You can bet that after he's fully invested he'll bring his friends in and then the money houses he's worked with in the past.
It's the single strongest buying indicators there is.
I was very happy with AGY before. Now the story is perfect!
AGY Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
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