1. What patterns of inside trading is really a basis for serious consideration of a specific stock?
Insiders may file SEC Form 4 for stock purchase because of reasons other than they think their stock may go up: they may have company stock compensation, or they may have to excises their stock options that are expiring soon. Generally, we should look for stocks that have several insiders, better if CEO or CFO is included, buy the stock at the market price within a short period of time, say 3 days. Each transaction should have a meaningful amount of shares and total proceeds, e.g., more than 500 shares and $1000. Further, check how many stocks the insiders have already own. If the transaction is the insider's first purchase, that may be because he/she just joined the company and is required to acquire some stock. Other than the transaction itself, investors should also check if the price has already moved a lot after the insider buy and if the stock itself is liquid so that a big transaction won't move the market badly.
An example is CRAY. On 7/29/04 2:26pm, while the stock was trading at $3, InsiderCow showed the company's CEO and CFO had bought 45,000 shares in separate transactions. The next day the stock closed 6% higher. The next Monday rumor began on the street that IBM was going to buy CRAY for $6 a share cash, and the stock closed at $3.43, a 14% gain in two trading days. For more examples please refer to our homepage.
2. What patterns of selling indicate a problem with a stock?
Insiders sell for different reasons. Bill Gates was continuing selling MSFT not because he's pessimistic about the stock but simply because he had too much stocks and he needed more cash. However, when several key insiders dump the stock continuously in a short period of time, each with big amounts, that may be a warning signal. Especially, avoid at any time stocks that have huge multiple insider sells.
3. Why does it keep making me re-authorize even though I've already logged in?
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4. Why the 'remember my username' checkbox does not work?
The reason is same as question 3 above. Please follow the steps in question 3 to set your browser options.
5. I want to use a new credit card (or new card expiration date) for Paypal, how do I change the credit card on my InsiderCow subscription?
Because we(InsiderCow.com) do not store your credit card information anywhere in our database, you need to go to Paypal and change from there. There are two steps, first you need to update your new credit card in your profile. You can do so by login into www.paypal.com and click Profile on the upper-right corner, click Credit Cards on the middle column. From there you can add or change your credit card information. Make sure you do NOT remove the credit card currently used for InsiderCow.com, otherwise your subscription will be cancelled. Next, follow the steps below to change the subscription funding source.
6. I got an email alert from you about insider buys on X but cannot find it after going to the site, why?
Because it is not an open market buy! Due to our effort to only report true open market transactions, so that members can save time and response faster, we filter filings. An insider may report a trasnaction as open market but in some cases it is truely not. For example, the price on that transaction is out of the trading range of the transaction date. When we see this, we filter them out and remove it from the site. However, because of the time sensitive nature, user-defined email alerts have higher priority than this filtering step. As a result, you may receive an email stating a buy but cannot find it on the site. Don't worry, it is not an open market transaction and you have not missed anything meaningful.