FAT CATS

[serfdom]

*Insider Buying Reports*

These make for some great plays - the ones at infinitistocks are published within hours of the Form 4 filings. So you get the advance word, generally about a week before Yahoo! gets them.

Usually, there is an initial surge as soon after the paid services publish them; then the price often drifts down a bit. That's where you load, if you like the stock.

When the peeps a Yahoo! see them, often the price moves up again. Be careful here though - insiders buy stock for many reasons, not all of them good. If you spot a large insider buy, go back and read the news for that stock. Try to get a picture of what's going on in their heads. Sometimes, extremely large purchases will not move the price becasue the company in undergoing a previoulsy announced buyout. Avoid those.

Companies will often make buys when their price is so low they are in danger of being delisted. This is NOT a good reason to buy the stock!! If you see a previous PR about a compliance warning from NASDAQ or AMEX, check into that stock carefully before investing.

Private placements (non-open market purchases) are usually hard to call. I avoid most of those. But in certain cases you'll see insiders and institutions pouring money into a stock that has previous news about a new drug/product that's being developed, or some other big plans. Those are choice plays. If insiders are investing in their own company to finance growth, chances are you'll do very well.