HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Insider buying and effect on the stock valuation ... A Lesson for Newbies

Insider buying and effect on the stock valuation ... A Lesson for Newbies

posted on Feb 27, 2009 02:28AM

I've seen many times (however I can't remember them now...brain not working this early) where insider purchases of their stock has a positive rift effect on others wanting to get in on the action. Buying by means of options isn't what I mean. Many of you have seen it before, but for those who are new to investing or never noticed before try looking at companies that have had solid upticks in their prices then look at the insider trading to see who was purchasing outside the realm of normal option purchasing just before the stock price increased. I think you'll discover that the major upswings in price invariable roll off the insider buying. Of course the insider trading can not be announced for a month (I think this is right) after the trade has taken place and it normally seems to affect the stock price before that 30 days is up so you can only really see how the insider buying affects the price by doing a historical overview of this or other stocks.

Now, that said, I haven't personally checked the ROF stocks out to see how much insider purchases, by means other than options, have affected the companies valuations. I would be interested to know if anyone else has. Also if anyone has a good example of where the insider purchases has come just before the stock valuation increased I would appreciate it if you could share it with us.

This is all another learning experience for those unaware of how much management purchasing into the company affect the overall investor sentiment relative to the company.

Of course insider selling (not be means of options) can have the same effect on the stock valuation moving downward.

All the best of the day to everyone,

Mustangman



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