Skip to Content

Tag Archives: insider trading

October 2007 Issue

Five years later, it’s still a bull! Yes, Virginia, it was five long years ago, back in those dark, scandal-ridden days of October 2002, that the stock market launched its first major ascent of the new millennium. And today, even after several blue chip indexes have doubled off that historic low, the
beat goes on — thanks to a big (and very timely) Federal Reserve rate cut.

Incredibly, many investors continue to fret that the end is nigh. But you don’t have to be among them. My work indicates that the market blast-off on September 18 signals a new and exciting chapter in this aging bull’s long life. We’re now cruising on what may turn out to be the last, best moneymaking
streak of the next two or three years.

In this month’s visit, I’ll point you to a handful of stocks uniquely
positioned to lead the advance. (Hint: They’ve got nothing to do with
subprime mortgages, or any mortgages at all, for that matter!) My favorite, a technology titan, looks so cheap that I’m projecting a 25%�35% gain in the next 12 months alone.

WHAT DO THE INSIDERS KNOW?

Insiders — the officers and directors of America’s publicly traded corporations — understand far more about the workings of their businesses than you or I (or any outside observer). Over the years, research has also shown that insiders have a pretty good grasp of how their companies’ stocks should be valued. Individual insiders may blunder in their buying or selling decisions. As a group, though, they’re among the savviest investors.