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Re: Mygolfballs post# 13834

Monday, 01/19/2009 9:07:55 PM

Monday, January 19, 2009 9:07:55 PM

Post# of 47790
FWIW

When Insiders Buy, Should Investors Join Them?
http://www.investopedia.com/articles/02/121002.asp
by Ben McClure, Contributor - Investopedia Advisor
Tips for beating the market tend to come and go quickly, but one has held up extremely well: if executives, directors or others with inside knowledge of a public company are buying or selling shares, investors should consider doing the same thing. Indeed, much research shows that insider trading activity is a valuable barometer of broad shifts in market and sector sentiment. But, before chasing each insider move, outsiders need to consider the factors that dictate the timing of trades and the factors that conceal the motivations.

Reasons to Follow
The argument for shadowing insiders makes a lot of sense. Executives and directors have the most up-to-date information on their company's prospects. Intimately acquainted with cyclical trends, order flow, supply and production bottlenecks, costs and other key ingredients of business success, these insiders are way ahead of analysts and portfolio managers,bnot to mention individual investors. Insiders' decisions - legal or not - to trade in their own company's stock are certainly worth examining.