Stock question: If a CEO buys a significant # of shares..is that a good indication...

[jwblue]

that the stock will go up.

IS

 

[WildBill]

Depends, but in general if ANYONE buys a significant number of shares then chances are the price will go up because of supply and demand. Definitely would need to know more about the specific situation though because chances are the market will react to this quickly and by the time you know, there might not be much opportunity for yourself left.

 

[assassin]

All C levels need to register trades with the SEC on their own companies. So unless you have inside nformation, the market has already digested this.

C levels should have insight into the company's short and long term, just be certain his wasn't exercing options granted at below market prices.

 

[KennyB]

If the CEO is buying shares on the open market it is a sign that he is willing to put his money where his mouth is. I am always more comfortable buying a stock knowing that the CEO owns shares that he bought on the market, as opposed to those from options or warrants.

 

[RPM]

i think when the COMPANY starts buying their own shares its a good sign of something big coming down the pipe.

 

[THE SHRINK]

YES it's a great sign unless the CEO happens to be RPM or Lander...

 

[RPM]

lol.

in spades...

please, please, under no circumstances DO NOT take stock tips from shrink!!!

man i just bought a beautiful house that could have been 5 TIMES BIGGER if i would have faded his stock tips!!!!

 

[THE SHRINK]

Congrats on the trailor big guy!!!

Did you go with Purple or Pink?

 

[JimFiestSux]

If the CEO is buying shares right before their Quarterly report, jump on with him or her, they know something that the public don't!

 

[hanover00]

When I worked on the Street, that was always a big sucker play. A company or it's executives announce a big share buyback program. They rarely ever complete even a fraction of the purchases, but in the meantime, they get you to buy.

 

[monicus]

The only insider transaction that has shown any ability to predict future stock prices is when an insider sells stock when it is at or near its lows. Obviously this is a very bad sign. All other insider transactions mean next to nothing.