If insiders are buying reputable stocks, look into the reasons why.
After all, it’s the insiders that know their company the best. And if they’re putting their money where their mouths are, you may want to follow their lead.
On August 8, one of the stocks we highlighted was Crocs (SYM: CROX).
“As the CROX stock was dropping, Director John Replogle bought 1,996 of the CROX stock for an average price of $123.95. In total, the transaction was worth $247,420. This also marked the first insider buy on CROX since March 14,” we noted.
At the time, CROX traded at about $127. Today, it’s up to $144.16. All you had to do was follow the insiders for a quick $17 gain.
We also mentioned MGM Resorts (SYM: MGM).
We noted, “On August 6, CEO William Hornbuckle bought 58,900 shares for just under $2 million. Director Paul Salem bought 147,500 shares for just under $5 million. And CFO Jonathan Halkyard picked up 38,299 shares for about $340,000.”
At the time, MGM traded at about $37. It would run to $40.10 shortly after.
And we also mentioned Anixa Biosciences (SYM: ANIX).
We said, “At ANIX, a Director bought 27,226 shares for $84,260. Helping, the clinical-stage biotechnology company, which focuses on the treatment and prevention of cancer, just authorized a $5 million share buyback program.”
At the time, ANIX traded at about $3. Up just 22 cents, this one needs more time to work out.
But again, by simply following insiders into reputable stocks, you stand a chance to do well.
