Recently I have been asked more and more about what Stockspikes.com really brings to the table. About what our mission and our vision is. About how we are different or how we can make a difference in a world filled to the rim with gurus, “professionals”, advisers, consultants, websites, etc. Private equity firms and angel investors have taken notice of Stockspikes.com and our approach and wanted to talk shop. Needless to say, we are not interested in creating a Fortune 500 company or taking money from wolves who will then tell us how to run our business. Nevertheless, the story I tell them is borrowed from a book or movie you will all recognize.
Stockspikes.com and Moneyball
A few weeks ago I watched one of my favorite movies again: Moneyball (2011). If you have not seen it yet, it is an unbelievable film adapted from an even better book published in 2003. ‘Moneyball: The Art of Winning an Unfair Game’ is a book by Michael Lewis about the Oakland Athletics baseball team. It walks you through how the team overcame adversity and its disadvantaged revenue situation (vs. the New York Yankees for example) by analytically selecting players for their baseball team based on specific statistics. Although he seriously stepped on the fragile toes of conventional baseball wisdom in the process, the Oakland A’s general manager, Billy Beane, managed to put together a competitive team in comparison to much wealthier teams. Well, Stockspikes.com plays stock market Moneyball by following Legal Insider Buying Activity.
Stockspikes in the Major League Stock Market
There are many ‘teams’ out there who play traditional ball on the stock market. All the investment banks like Goldman Sachs, JP Morgan, Morgan Stanley, etc. and traditional investors like Warren Buffet, George Soros, etc. They are the rich teams. One of the quotes of the movie that always stuck with me was: “If we play like the Yankees in here (referring to the scouting team’s meeting), we will lose to the Yankees out there (referring to future match-ups with rich teams).” Many of the investment banks and gurus have what you do not have yet: millions or never mind billions. Because of that huge pile of cash they have, they can play the stock market game in a traditional way. With big ticket slow moving stocks and lots of time/patience.
5% in a big stock can often take a while, but if you put in 100 million dollars you get 5 million dollars profit. Nice. Do you have 100 million dollars? The Oakland Athletics did not either. The baseball team also needed to get ready, they could not wait 30 years to become competitive. So how do you play the game with 50K, 10K, 1K? You play stock market moneyball. You find cheap stocks with key statistics that predict theoretical performance. Why would you not? The information is available out there and like Jonah Hill’s character in Moneyball, Stockspikes wrote an algorithm to automate the scouting process. We find relevant, high potential insider buys and take action in the same stocks. It’s safe, reliable, and fast.
At the end of the movie after the play-offs, Billy Beane gets a call from the Boston Red Sox. They offer him an extremely attractive job offer, but he declined and stayed with the Oakland Athletics. I have no interest in becoming affiliated with any huge investment bank. Stockspikes.com will always remain independent. Although I will never be nominated for an Academy Award as Best Actor in a Leading Role, I hope you understand now why Stockspikes.com does what it does. If you want to get the same alerts that land in our mailbox and the one from our premium subscribers automatically, subscribe for a Free Trial.
- Published in General
February was a big month for the stock market as a whole, but BIGGER for us.
Although the S&P 500 index is setting a new all-time high record and the Nasdaq keeps pushing higher and higher, legal insider buying transactions are pushing the limits of what is possible.
Here is a quick overview of what some of our recent alerts did in one daytoday:
Unfortunately not too many people have profited from this amazing rally … Even with the markets going up, most of the investors are still losing money.
The NUMBER ONE REASON for this is the lack of time to research the market and pick the right stocks. That we can solve, however!
As you probably know, our way of investing is very simple. Whenever an insider buys a significant amount of shares of its own company, we buy as well. We usually sell within the following month, making quick, juicy returns.
Do we follow all insider buying activity? No, definitely not, only the ones that meet all of our criteria. Since we have started trading insider buys many years ago, we have a hit rate of 80%.
Does this mean that 80% of our picks are winners? Yes it certainly does!
And it gets even better, a lot of our picks gain more than 10% within one month after the alert. Double your portfolio in 2014 like we do every year since we started.
It is impossible for us to lie about the performance of our alerts, as we report insider buying activity as it is legally filed.
So what are you waiting for? Just sign up for a 14 day free trial and check it out. It is a regular Credit Card subscription for 0 dollars for the first 14 days and you can cancel any time!
- Published in General
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!
- Published in General
Boom!! As the whole market was enveloped in a pathetic week, insiders brought their game again. Another +10% jump on the books and congrats to our Premium Subscribers once again! This is The Definition of Insider Trading.
The Definition of Insider Trading
In short, we had a repeat of Week #4 in the world of insiders. If you follow insider buying behavior, you know that since the beginning of time, insider buying is correlated with jumps in the stock price. CEOs know more about their company than any other person and when they buy stock of their own company (legally), the market at least assumes something is up, and if it is, the stock spikes. Simple as that. It has been proven time and time again in statistical studies that our strategy works.
As most of our subscribers know, we actually love this strategy mostly because it is safe as you are protected to the downside because of market expectations. Next to that, you get a lot of short term jumps to profit from! This week we had two alerts displaying just that with $SANW and $UTSI popping up in our and our premium subscriber’s inboxes on Tuesday and Wednesday. For people who want to get these alerts, you have access to a 14 day free trial and you can cancel any time.
$UTSI did not move around much and we signed off with a 0.5% loss there. For new people reading this, this is great news. No stock market strategy gets a winner every time. Not a single one. The difference is that we barely lose any money on the non-performers. You will notice that the stock did not tank. It just did not move around much as we are protected by the expectations of the market. Then we had $SANW, which booked us a +10% jump in a few days! This is the definition of what we do: statistically proven, protected by market expectations, quick in and out, high percentage of winners. Once again, I am not claiming that we are better than anybody else. But we do have the key to regularly participating in strong short-term gains safely and reliably.