By Jonathan Moreland, founder of Insider Insights and author of Profit From Legal Insider Trading.
NEW YORK ( TheStreet) -- It is a victory for common sense. Tracking the trading behavior of company executives, directors and large shareholders in the stocks of firms they're registered in as "insiders" has proven to be profitable, according to both academic studies and (more importantly) the experience of professional investors.
Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission
Tuesday, November 13, 2012 as ranked by dollar value. Please note, however, that these are only factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.
At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.
Top 10 Open-Market Purchases
|Take Two(TTWO)||Icahn Carl C||BO||1,098,200||12,563,408|
|Janus Capital(JNS)||Dai Ichi Life Ins||BO||1,282,419||10,291,010|
|Strayer Education(STRA)||Wargo J David||DIR||60,000||2,754,600|
|Kinder Morgan Mgt(KMR)||Kinder Richard D||CB,CEO,DIR||20,000||1,454,802|
|Trans World(TWOC)||Wynnefield Sm Cap||BO||594,208||1,336,968|
|Halcon (HK)||Wilson Floyd C||CB,CEO,DIR||175,000||999,828|
Top 10 Open-Market Sales
|Reynolds American(RAI)||Brown & Williamson||BO||874,888||36,246,608|
|Jda Software(JDAS)||Armstrong James D||DIR||344,409||15,423,570|
|Seagate(STX)||Luczo Stephen J||CB,PR,CEO||250,152||7,354,469|
|Google(GOOG)||Doerr L John||DIR||7,495||5,000,241|
|Trans World(TWOC)||Marxe A & Greenhse D||BO||1,544,208||3,474,468|
|Kilroy Realty(KRC)||Kilroy John B Jr||PR,CEO,DIR||50,000||2,215,110|