SwingTrade Member Forum

[Jagman]

RMKR, Peter Lynch mentioned:

Don't trust the hype
A while back, Rainmaker Systems (Nasdaq: RMKR) appeared on the main page of Form 4 Oracle because of a spate of insider buying at the sales and marketing outsourcing firm. A check of the press release archive showed this to be the result of a $2.7 million stock placement with private investors and management that was completed in June. But investing is never that simple. So I dug deeper.

I soon found that three months prior, legendary investor Peter Lynch snapped up roughly 7% of the company for somewhere between $0.54 and $0.70 per stub. You could have done the same. How? You could have dug into the filings available through EDGAR. On March 15, Mr. Lynch filed a statement with the SEC revealing the purchase. One month later, Rainmaker issued a proxy statement showing all holders of at least 5% of the company's stock as of Feb. 28. And as one might expect, Mr. Lynch wasn't on that list, as the proxy statement showed material owners as of Feb. 28. Yep, it pays to do homework.

http://www.fool.com/news/commentary/2005/commentary05081209.htm?source=eptyholnk303100&logvisit=...