You will sometimes see on one of your stocks that the insiders are buying its shares.There are two main reasons this can happen.A company will buy back it shares to protect itself from being taken over and to boost the value of the companys per share earnings.Another reason would be refuel there options incentive program to there employees.How they buy back there shares is important.Do they use there own money from profits or borrowed money.Of the forty companys i looked at thirty two had a substantial increase in the price of there stock.Eight went into the red.Once the price of the stock increases to where the insiders can make a handsome profit the options are excersized and sold.These insiders are great manipulators and are in the business of making money.You could write a book on buybacks.So the next time you see a buy back on a stock you have or are thinking of buying or already own why not check it out as to why.TW spent his life watching manipulation of stocks and this might be one of the thing he saw. |