FYI: From an email I received..............:
How To Make Fast Profits Following The
'Private Money Trail'
Of Corporate Insiders
(What Better Signal That A Stock Is About To Soar Than
Company Executives Buying Up Large Blocks Of Their
Own Shares For All The Right Reasons
See how a select number of stocks surged 62% to 639%
in the months following insider buying --
and how you can get in on the action.
Dear Fellow Investor,
A.L. Soave, a director at Titan International, recently purchased 130,700 shares of his company's stock at $8.11 a share.
Some would say Mr. Soave showed some pretty remarkable clairvoyance at the time. That's because...
One year later, Titan stock was trading above $60 a share - a 639% increase.
He's not the only one.
Laurence Hirsch, Chairman of the Board of Centex, bought 36,000 shares right at the market peak in March of 2000 at an average price of $17.75. By March of 2001, the Dow and the Nasdaq had both taken a whipping. But not Centex...
Hirsch's shares almost tripled to $45 over the same period - a 154% gain in about a year. While the market tanked.
Then there's O.S. Andras. He recently bought 100,000 shares of his company, Enterprise Products, at an average cost of $15.29 a share...
In just twenty months it rose to $48.35 a share - a whopping 216% profit.
It's no secret. Insiders have been profiting from their own company's shares for as long as stocks have been publicly traded.
Is it any wonder? Who better to know, after all, when to start buying up shares than someone with intimate knowledge of the goings on within that company? Someone who knows hundreds of details about its operation and future prospects...knowledge those of us on the outside could never hope to have.
But unless you know these people personally, there's absolutely no way for ordinary investors like you and me to get in on the action - right?
Wrong.
The fact is you can profit from insider buying simply by knowing when insiders are loading up on their own stock and why they're doing it...
You can cash in on the inside knowledge executives and directors have about their own companies - and make huge profits on their coattails...
And best of all, you can do it each and every time any insider of a publicly traded company is backing up the truck to load up on shares in anticipation of a substantial jump in the stock price.
And I'm going to tell you how you can do it in this letter - using the 'Form 4 Indicator,' an 'early warning system' based on insider buying.
It Sounds Illegal - But It's Not
Created by the U.S. government, the Form 4, in my view, is the ultimate leading indicator for future stock prices. In fact, when I tell people how it works, the idea is so immediately compelling that - almost invariably - their first reaction is 'that's illegal, isn't it?'
Absolutely not.
But when you see how quickly the short-term profits pile up, you'll understand their reaction. The secret is contained in the federal government's Form 4, which contains much of the information your need to legally capitalize on top-performing stocks before they make their big move up . . . regardless of what the broad market is doing.
Best of all - in these volatile times - this is an exceptionally low-risk way to invest. In my experience, there are lots of systems that work in a bull market. But they fall apart when the market turns treacherous, as it has recently. This indicator, however, is simply uncanny. As you'll soon see, it allows you to chalk up one winner after another...no matter what the market averages are doing.
And - most importantly - you're going to understand how it works just as soon as you hear about it. Because aside from the mountain of evidence I'm about to show you - showing short-term profit opportunities of 216%, 264% and even 737% -- your own common sense and everyday experience will confirm the validity of what I'm about to tell you.
Intrigued? I don't doubt it. But I invite you to be skeptical as well. Because when I get done telling you how to use this system, you'll have in your possession a very powerful investment advantage. Perhaps for the very first time in your life, the odds of investment success are going to be heavily stacked in your favor.
You can look forward to not only recovering what this bear market has taken away --but also to quickly achieving a level of financial independence so complete that money will no longer be a concern in your life.
I'll show you how in a moment. But first, let me begin by asking you a question.
What do you think of when you hear the term 'insider trading?'
Do you think of Ivan Boesky or Dennis Levine tottering off to their jail cells? Do you think of Michael Milken paying the biggest fine in SEC history? Do you think of company insiders profiting at the expense of other shareholders?
That's what most people think. Insider trading, after all, has quite a checkered reputation
But some people erroneously believe that if an insider makes money buying his own company's shares, it is - by definition - illegal.
Perhaps that's because, for years, corporate officers and directors have moved in and out of stocks ahead of the investing public...taking advantage of news and information that was unavailable to the investing public. And locking in enormous gains in the process.
The game was rigged because the insiders were privy to material, non-public information that other investors could never hope to access.
But I've got news for you.
I'm about to show you how you can use the Form 4 Indicator to lock in the same huge profits the insiders do. Safely. Simply. And, of course, legally.
Here's how.
Investment Intelligence So Valuable . . .
The U.S. Government Regulates It
By definition, an insider is an officer, director or more-than-10% shareholder of a publicly traded company. As I'm sure you're aware, these individuals tend to be very well compensated. But there is one perk you won't read about in the annual reports.
Listen to this:
On March 31, 1999, the Chairman of the Board of GlobalStar Telecom, B.L Schwartz, purchased 100,000 shares of his company's stock at $13.60 a share. In less than ten months it was selling for $49.50 a share. A 264% moon shot.
T.M. Harmon, an officer of Pacific Sunwear of California, is another prime example. He had the foresight to pick up 20,000 shares of his company's stock at $13.95 a share. And was rewarded with a 179% rise over the next five months.
Then there's J.R. Adams, chairman of Texas Instruments. He bought 3,000 shares of his company's stock, bringing his total to 136,000 shares, at $11.17 a share, split-adjusted. Just over two years later, the stock had risen an astounding 737.2% to $93.52 a share.
All jackpots. All legal.
In fact, the vast majority of insider trading is totally and completely legal. It simply must be fully disclosed publicly and meet other requirements set by the federal government.
Congress realized many years ago that insiders have an unfair advantage because of the breadth and depth of information they have about the companies they run.
How could it be otherwise? Anyone who has run a business knows hundreds of details about its operation and future prospects that those of us on the outside could never hope to know. And this confers an enormous advantage to insiders trading their own company's shares.
In addition to their inside knowledge, these folks' understanding of their industries allows them to interpret publicly available information that may be meaningless to outsiders. In short, they know virtually everything that can be known about their company's industry and business prospects. And while they are not supposed to buy shares based solely on insider information - let's face it - it's impossible for them to forget everything they know when they go into the market to trade.
As a result, insider buying is an exceptionally valuable leading indicator of a stock's potential. And there is more than just reams of anecdotal evidence to prove it. Even objective academic studies have reached the same conclusions.
For example, in 1998 H. Nejat Seyhun, The Jerome B. and Eilene M. York Professor of Business Administration, of the University of Michigan Business School published a comprehensive study of insider trading activity. The results confirmed what hedge fund managers and Wall Street insiders have known for years.
Here's what they found in this landmark study:
'Insider buying activity signals greater than average stock price increase.'
'Insider trading is profitable and insiders' current transactions do predict the future stock price movements up to a year ahead.'
'Insider-trading laws have shifted the rules of the game in favor of small, short-term traders against large, long-term investors. Hence a clear winner from insider-trading regulations is the small investor.'
But here's the good news. Now you can use this same information to lock in the same triple-digit profits the big-hitters do.
Let The Insiders Hand You An 'Unfair Advantage'
I'll explain the entire process, beginning with the basics.
How would you interpret a Chairman or CEO backing up the truck to buy thousands of shares of his own company's stock?
Could it mean the company plans to launch a new blockbuster product? Or perhaps those earnings are going to come in way ahead of the consensus? Or just maybe the board of directors has discussed the idea of putting the company up for sale?
It could be any of these reasons . . . or dozens more. But the bottom line is this. The right type of heavy insider buying can only really mean one thing. The shares are WAY undervalued.
Which is exactly why insider trading is regulated by the U.S. government.
Fortunately, Congress realized it couldn't simply ban insider transactions outright. After all, who would go to the trouble of starting a public company without the right to share in its success?
So in lieu of an outright ban on insider trading, Congress passed a law demanding full disclosure. Insiders are free to buy and sell shares of the companies they run, but they must meet certain requirements, including reporting their buying and selling of company shares to the Securities and Exchange Commission (SEC).
That's the law, plain and simple.
So while unreported insider trading still goes on occasionally, the penalties are stiff. In fact, the failure of insiders to report their transactions in a timely fashion is a violation of securities laws which currently involves -- not only the forfeiture of profits --but fines of up to $2.5 million as well as up to ten years in prison!
The reason the penalties are so severe is straightforward: corporate insiders have an unfair advantage. And - if you're like me - this realization is about to change your whole way of investing.
Let's face facts. You can't know everything the insiders know about their own company. It's simply not possible. But here's the important point. If you see officers and directors loading up on their own company's stock, you don't need to know all they know. If it's the right type of insider buying - and I'll show you how to tell if it is in a moment - the buying itself is the detail you need to know!
A Winning Low-Risk Strategy
In Good Markets And Bad . . .
It's surprising but most people I speak with have no idea whether the insiders are buying or selling the stock they own...or that they plan to own. Apparently, they don't appreciate that this is perhaps the single best indicator that their investment is going to turn out to be profitable.
Of course, not every insider purchase results in a grand slam.
For instance, A.R. McMullian, chairman, and G.E. Deese, president, of Flower Foods, were probably content with just a base hit. They bought a total of 50,000 shares of their company's stock between $29.95 and $31 a share in June of this year. Within two months the stock had already hit $41.75, a 36.9% increase in a falling market.
Similarly, five insiders at Cobalt Corp. bought a total of 23,285 shares of their company's stock in May of '01. In less than two months, it was 52% higher. Again, this all happened during the recent bear market.
W.P. Foley II, a director of CKE Restaurants, seems to know when to bait his hook as well. He purchased 99,000 shares of his company's stock at $3.86 a share and watched it just about double . . . in just 45 days.
Bruce Nelson, the CEO of Office Depot, had similar good luck. Between the end of May and mid-July 2000, he decided to pick up a few shares - roughly a million dollars worth - at an average cost of $7. It took less than 14 months for the shares to double . . . while the broad market was plummeting.
As you can clearly see, you don't need a bull market for this indicator to work. Quite the contrary. The market's behavior is completely irrelevant.
Using The Powerful 'Form 4 Indicator'
As a leading indictor, the 'Form 4' is simply the best I've ever seen. Yet the vast majority of investors I speak with don't even know what a Form 4 is (and there's a good reason for that, as you'll discover in a moment). Therefore they can't possibly realize that this little form is a dead give-away to the kind of explosive, short-term profits I've showed you so far...
Here's why.
Getting Rich From Government 'Red Tape'
The Securities and Exchange Commission requires all insiders to report their trading activity by the tenth day of the month following their purchase or sale. This is done on what the government refers to as a 'Form 4.'
Of course, most insiders don't wait until the tenth of the following month to report their buys and sells. With the heavy penalties levied for noncompliance, most insiders report their transactions almost immediately.
However, the average investor may never see this information. The reason is that the only comprehensive source of published insider transactions is a big, fat book published monthly by the SEC called 'The Official Summary of Security Transactions and Holdings.'
If that sounds like a cure for insomnia, it is...
But worse, it might as well be useless since the typical lag time between the reporting of the insider transactions and the publication of the SEC book is approximately three months! By then, it's usually too late. You've already missed the jump in the stock.
No question, if you're going to profit along side the insiders, you need to act immediately. But what most investors don't realize is that you can access this information immediately...and in just a moment I'll show you how you can capitalize on this crucial intelligence at warp speed.
The Difference Between Getting Insider Buying
Wrong . . . And Just Right
But first, I don't want to give you the impression that simply buying on the coattails of insiders is like hitting the bulls-eye every time. Like most things in life, it's not that simple.
There are dozens of variables that determine how valuable insider buying is. It may come as some surprise to find that not all insider trading activity is helpful. In fact, a lot of it is nothing more than distracting background noise that makes clear-headed analysis harder, not easier.
That's why I'd like to introduce you to the most capable interpreter of insider trading data I know . . . and your biggest ally in helping you reap a windfall based on these indicators, Alexander Green.
Alexander Green is the Investment Director of The Oxford Club. Before joining the club full-time, Mr. Green spent 16 successful years on Wall Street as a research analyst, an investment advisor and, most importantly, as a registered portfolio manager. In addition to his wealth of personal knowledge, he has contacts with top executives, researchers and advisors all over the world.
You may be aware that Mr. Green already runs two of the most successful trading services in the country, the Momentum Alert, dedicated to trading the market's fastest growing companies, and the Oxford Short Alert, a service strictly dedicated to selling short the market's most vulnerable companies.
One of the 'tools of research' Alex uses on a regular basis is the technology and connections that allow him to instantly access insider trading data electronically - the instant it's reported...not three months later.
For instance, he recently showed me the buying that insiders at Aeroflox were doing just before the stock shot up 200.7% in less than 3 months. I still wonder what they knew that the rest of us didn't. Of course, as Alex pointed out, sometimes it doesn't matter. When a company is trading below fair-market value, the most important factor often is the quantity and quality of insider trading.
Like the insider buying that took place with the SonoSite Corporation. The top executives here didn't miss a trick. Unless you want to believe it's a coincidence the shares rose 270.4% in less than seven months after they reported substantial insider buying!
124% Gains in 90 Days!
And shares of Concord Camera blasted 124.4% higher in the 90 days after the insiders' buying became public knowledge.
Likewise, shares of Lone Star Tech rose a nifty 69% in the seven months after the insiders lined up to buy shares of their stock.
But as I said, if it were as easy as simply watching the insiders and mimicking their trades --everybody would already be doing it.
But it's not that easy - not quite. In my experience, neither I nor most investors I know are qualified to interpret the nuances surrounding insider activity.
That's why you and I can rely on Alexander Green. He knows the difference between insiders who are buying to make a fortune... and insiders who are buying just to show that they're 'a member of the club.'
He knows how to take apart a company's records to see who is buying by exercising free or low-cost options... and who's really stepping up to the plate to buy with their own hard-earned money at current market prices.
He knows when some of the insiders are merely executing options they received as part of their compensation. That kind of insider buying, Alex tells me, doesn't count for much.
Or when an insider has bought so little that he doesn't have the strength of his convictions.
Or when an insider has an atrocious record based on his previous insider transactions. As a leading indicator, that means his purchases are essentially meaningless.
Alex also mentioned to me that there is a big difference between one insider's buying and another's. Top executives know more than junior executives do. And virtually all executives generally know more than the board members do, since they're usually one step removed from the day-to-day activities of the firm. And shareholders who own 10% or more of the company, who are also required to report as insiders, may be very astute or completely oblivious. It depends entirely on the individual.
Another bullish indicator that Alex zeroes in on is 'buying clusters.' That's when the insider buying is spread throughout the company. That means the top executives are buying, the mid-level officers are buying and even the low-level guys, who barely qualified as insiders, are buying. More often than not, that's a sure sign that there's good news in store - and that the stock price is about to move higher.
Alex also carefully analyzes the quantity of the insider buying. Certain sized transactions are more meaningful than others. While ordinarily the larger the transaction, the stronger the indicator, Alex explained how there are certain price volume levels you have to monitor more carefully. For instance, trades of $1 million or more are often useless as leading indicators.
I asked Alex why. He explained that transactions of this magnitude are bound to come under greater SEC scrutiny . . . and are therefore less likely to be based on material, non-public information. And, as a result, less likely to be a guide to explosive short-term trading profits.
A 'Foolproof' System For Generating
Short Term Gains From Insider Activity
1. As you can see, it takes a specialist to take apart and analyze insider trading...to be able to separate those purchases that are 'just for show' and those that are serious moneymaking transactions. And the direction of the broad market is largely irrelevant. In the first half of 2002, while the S&P 500 plunged 19%, Insider Alert subscribers made a killing, locking in double-digit profits in New York Community Bancorp, US Oncology, Bio-Reference Labs, Household International, Rite Aid, Omega Healthcare, Capital Bancorp and others. Alex Green has developed a system that aims to provide consistent short-term profits based on telltale insider trading.
He looks at both the quality and quantity of the insider buying. Who's doing the buying and in what quantities. He looks at each insider's historical batting average.
And as an added measure of safety, Alex doesn't base his recommendations on insider activity alone. Insiders are fallible human beings, just like the rest of us. So he backs up his research by zeroing in on the company's fundamentals. He tears the balance sheet apart. He throws out the goodwill write-offs, accounting tricks and other extraneous noise.
In fact, he applies the most stringent set of investment criteria in his investment selection process that I've ever seen. But then again, he's spent 16 successful years in the trenches on Wall Street. He knows what works and what doesn't.
Given the wealth of his insights and experience, his club asked him to create a trading service that is based primarily on his analysis of insider trading activity. And, perhaps most importantly, he will help you maximize your short-term profits by telling you exactly when to get out. Insiders sometimes buy and hold on for years. Our interest is different. We want to ride the stock up on news the insiders are piling in . . . hold on until the stock appears to have topped . . . and then move on to the next one. As in much of life, timing is everything.
And now we're making it available to a select group of Investors.
Here's how it works . . .
IntroducingThe Insider Alert . . .
The Insider Alert will feature precisely the kind of fast-moving recommendations based on insider trading that we've talked about in this letter.
Like other trading services that are based on timely information, this will be an 'instant alert' service. When insiders begin accumulating shares, there is no time to write, edit, layout, print, and mail a newsletter. Especially in volatile times like now. These trades move quickly - as do the profits - so the service will be provided by fax or e-mail. Bottom line: our goal is to move just as quickly as the insiders do.
So when Alex Green discovers an opportunity that meets all his criteria, including significant insider buying, he writes it up immediately. He then phones or e-mails it to our headquarters from wherever he happens to be at the moment. Within minutes, we'll blast it out to you by fax or e-mail (you tell us which you prefer). You then relay the recommendation to your broker and the trade gets executed. The whole process takes a matter of minutes.
Besides the 'arrive anytime' alerts, you'll get a summary (also by fax or e-mail - your choice) at least once a week updating you on the current status of each outstanding trade.
Plus, as an Insider Alert subscriber, you'll also get a direct access phone number to his VIP trading desk, headed by Alexander Green's research associate, Chris Matthai. Use it anytime you have a question or need more information about any stock that we're buying.
The cost is $1,250 for a year's subscription.
Before you subscribe, there's one more thing I want to tell you. Because we expect - and I'm sure we'll see - an over subscription and then a waiting list for this service, enrollment will be limited.
Let me assure you that Alex does not divulge the names of companies he's researching prior to recommending them. The effectiveness of this service is due in large part to the speed and confidentiality of the recommended trades. As editor of The Insider Alert, his loyalty is to his subscribers.
Join us today, and the next Insider Alert could be in your hands tomorrow. And the profits that go with it.
You can ensure a reserved spot in this elite trading service by clicking here.
Sincerely,
James Boxley Cooke
Chairman, The Oxford Club
P.S. If you're interested in profiting on the coattails of company insiders, I urge you not to delay. Alexander Green tells me that there is a great deal of insider activity these days - now that so many stocks have fallen to record low prices of late. It's during corrections like we've seen, says Alex, when insiders who are genuinely excited about their own company's prospects are most likely to load up on shares in anticipation of a substantial jump in price. Please don't miss out on the opportunity at hand!
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