Rocky, in my experience, the insider buy alone does not warrant an investment. When I'm decideing whether to alert readers, I go back and look over all pressreleases and scan the filings. Usually you can see why they bought it - because the law says an insider may not buy the stock if he has exclusive information.
LIPD was a penny stock that was trading around a buck in early August. I spotted an insider buy made by the CEO for $6,000,000. It was a private placement - but even then, I was curious.
So, after reading through the public info, it turned out they had some exciting new drugs in the pipeline - and the CEO was so convinced of their potential that he financed clinical trials with his own money. Even though it was not an open market purchase, it was a very bullish situation.
Sure enough, the stock ran from $1.35 to over $2.50 in under a month. There are always shades of gray - but with practice, insider buying and selling can earn you a pile of loot.