Today in the early morning at 9.56am our system alerted us of a large insider buy in FORM Holdings Corp. Their director Richard Abbe picked up 39,670 shares on Friday, May 19th. He paid an average of 1.54 per share, making a total investment of $61,139. The stock jumped up today and we could have grabbed a quick and easy profit, but did we?
As you can see on the screenshot below, the insider buy of today is not the only insider trade over the last days. However, our system did not alert us of the other buys due to the small value size. The stock had gone up already a little bit on the news of the multiple smaller insider buys and therefore we did not pick up any shares this time. Learning of the day: Once again it shows us that we should keep emotions out of the game and just trust our system. More than 80% of our alerts make us quick and easy profits so we should just stick with playing the numbers game.
More information about FORM Holdings Corp.
FORM Holdings Corp., together with its subsidiaries, develops, acquires, and monetizes intellectual property worldwide. It operates through three segments: Intellectual Property, Fli Charge, and Group Mobile. The company’s intellectual property portfolio consists of approximately 600 patents and patent applications covering telecom infrastructure, Internet search, ad-insertion, and mobile technologies. It also designs, develops, licenses, manufactures, and markets wire-free conductive power and charging solutions, such as conductive charging pads and associated cases for phones, tablets, and laptops. In addition, the company operates as a full service reseller of rugged computers, rugged tablets, rugged mobile devices, rugged mobile printers, vehicle computer docking and mounting gears, power accessories, wireless communication products, antennas, carrying cases, peripherals, and accessories, and other related products to emergency first responders, municipalities, and corporations. The company was formerly known as Vringo, Inc. and changed its name to FORM Holdings Corp. in May 2016. FORM Holdings Corp. is based in New York, New York.
- Published in Technology
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!
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.