Most Insider Buying Since 1998!

[Parsad]

Not only does this bode well from the obvious perspective, but generally if insiders are buying the stock, they will use company assets to also buy back stock.  Cheers!

 

http://www.cnbc.com/id/44161947

[mhdousa]

Not only does this bode well from the obvious perspective, but generally if insiders are buying the stock, they will use company assets to also buy back stock.  Cheers!

 

http://www.cnbc.com/id/44161947

 

Sanj, I can't place where I read it, but I thought I read somewhere that insider buying tends to go up at exactly the wrong time (i.e. when the market is overvalued).

In 1998 (the last time insider buying was this high), the PE10 was in the 30s. 

[biaggio]

http://4.bp.blogspot.com/-EynXuE2Bphs/Tkh_xuqFdmI/AAAAAAAAClY/JzQLrO0F9H8/s1600/Rolling+20yr+returns+vs+starting+PE+ratio+-+Crestmont+Research.png

 

interesting chart

 

 

[beerbaron]

http://4.bp.blogspot.com/-EynXuE2Bphs/Tkh_xuqFdmI/AAAAAAAAClY/JzQLrO0F9H8/s1600/Rolling+20yr+returns+vs+starting+PE+ratio+-+Crestmont+Research.png

 

interesting chart

 

Am I reading this thing wrong or the chart point that when PE are increasing the 20 year return increases? It seems counter-intuitive to me...

 

BeerBaron

[Parsad]

Not only does this bode well from the obvious perspective, but generally if insiders are buying the stock, they will use company assets to also buy back stock.  Cheers!

 

http://www.cnbc.com/id/44161947

 

Sanj, I can't place where I read it, but I thought I read somewhere that insider buying tends to go up at exactly the wrong time (i.e. when the market is overvalued).

In 1998 (the last time insider buying was this high), the PE10 was in the 30s. 

 

There are a million articles and PhD papers on this...some saying no, some saying yes.  Common sense tells me that when executives buy their own stock, they believe they are making a good investment based on inside information and the company's particular circumstances.  If people are naturally selfish, this would seem to be a good indicator...but it's not the end all, be all.  Cheers!

[biaggio]

http://4.bp.blogspot.com/-EynXuE2Bphs/Tkh_xuqFdmI/AAAAAAAAClY/JzQLrO0F9H8/s1600/Rolling+20yr+returns+vs+starting+PE+ratio+-+Crestmont+Research.png

 

interesting chart

 

Am I reading this thing wrong or the chart point that when PE are increasing the 20 year return increases? It seems counter-intuitive to me...

 

BeerBaron

 

yeh, upon looking at it again, it does not look right(?)  At the 1999 pt, the peak in increase in PE, the annual rate of return (20 year rolling) looks like 15%, but that must be the return of the market that year (not for the next 20 years) which would reflect the increased PE multiple + any increase in earnings per share. -besides 20  years has not passed-Or would that reflect the preceding 20 years

 

Anyways to me it looks like it is best to buy when PE's have decreased-then the next 20 years will be good for returns.

 

 

[bargainman]

 

Sanj, I can't place where I read it, but I thought I read somewhere that insider buying tends to go up at exactly the wrong time (i.e. when the market is overvalued).

In 1998 (the last time insider buying was this high), the PE10 was in the 30s. 

 

There are a million articles and PhD papers on this...some saying no, some saying yes.  Common sense tells me that when executives buy their own stock, they believe they are making a good investment based on inside information and the company's particular circumstances.  If people are naturally selfish, this would seem to be a good indicator...but it's not the end all, be all.  Cheers!

 

Yeah, the one memory that stands out in my mind was that a combination of insider buying *and* share buy backs was a good sign.  Not sure about insider buying by itself.