Sunday, May 11, 2008

Insiders are Buying

I've wondered lately whether the downward market movement of late has been considered an opportunity. Is there evidence for that attitude?

A big part of my buying strategy has been to follow the insiders. So I've been keeping track occassionally of how much insiders have bought. Here's a simple test: have more MFI stocks been bought by insiders? This seems to be the case. It's a simple test: just the fraction of MFI stocks with insider buys, regardless of number of insiders buying or the number of shares bought per purchase. It would be really nice to have more data, but 2008 buying is significantly increased from all other buying (by t-test, P = 0.034).

This is encouraging to me to kickstart some more buying on my part.