January! A time when I always get giddy about the coming year, although market analysts are wetting their panties for what is to come. Supposedly, it will be a very volatile year and indices will not end up much higher. Who cares :). Volatility is a good thing for insider buying and we do not really care about the overall market anyway. We like inside buying!
January is a slow month. Not only traditionally, but we think the big investment banks might have scared some of the insiders off too. Every year it is the same story: market this, market that, bla bla bla. Did you know that almost every investment bank said that the market would go up by 10 percent last year? Well, it didn’t. It went up a lot higher. It could have tanked for all we know. No one can predict the future. We can’t either!
The difference however, is that we are not actively trying to bite of more than we can chew. We are not out there analyzing the effects of the Fed’s tapering on the overall market or China’s impact on the gold price and how everything ties together. Even when your analysis makes sense, it has no predictive power. None. Whatsoever. Statistically proven.
What we did do, is look at what statistics did prove. The fact that legal insider buying activity is often associated with a stock price increase for example. If there are people with some predictive power in our opinion, they are the people leading the individual companies on the stock market. Does the stock price always go up after an insider buy takes place? No. Does it often go up? Yes. Especially with some of the criteria that we add to the mix. Every day a lot of insider buying activity happens, but that event might not have an impact on a stock like IBM for example. So we do not report it in our Premium E-mail Alerts.
This week Seacoast Banking Corp ($SBCF) provided us with another nice bump to add to the mix!
Will every month be a killer month? No. Will over time, the returns of this strategy outperform the returns of the market and reliably get me to move the needle for your capital. Yes. Very much so! For newcomers to our community, check out our monthly reports, check out our blog posts. This is all verifiable information. We hide nothing, because there is nothing to hide. If an insider buys and the stock fits our criteria, it lands in our Premium Alerts Subscriber’s inbox. Boom. Done. Next!
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