Although both stocks posted decent highs inside May of +8.45% and +19.35% respectively, June was really where the action was about to happen. Let’s take another look at Limelight Networks (LLNW) and Geron Corporation (GERN) to make clear what insider buying activity is all about. Stock prices do not really care about dates as much as people do as you can see below.
BOOM! +41% on LLNW and +69% on GERN! See what I mean here? This is the kind of information you miss when only looking at snapshots. +41% and +69% from the time of our alerts looks completely different figures than what we saw in May alone, of course.
So what happened here? Well in short LLNW won an 8-year old patent infringement court case in early June, and the FDA removed the hold on GERN’s cancer research clinical trial in the middle of June. We first alerted LLNW on May 22nd and GERN on May 12th in real-time at $2.13 and $1.86 respectively when significant insider buying had just taken place in both companies.
For new readers: this is the kind of price action you get when following insider buying activity. So many statistical studies have proven the edge insiders have and, as a consequence, investors who follow them closely (that is why we do it in real-time) and on top of that there are plenty of anecdotal stories like the above that underline that insiders do know more.
Because this is not the millionth profitable coincidence, of course, and you can bet your pinky that these things will keep happening with a lot of stocks spiking as a result. From our perspective we just let it all happen and we are going to keep profiting from this happily and safely. Sign up for a Free Trial by clicking the button below if you have not already!