Jonathan Moreland of Daily Insider Ratings has been tracking insider buy and sell behavior for 30 years - pre-dating when this data was publicly available via the internet. Despite what many investors believe, using insider trading patterns to determine whether a stock is worth owning involves a lot more than simply adding up insider buys and sells. Moreland uses insider trading as a starting point to narrow down the universe of publicly traded equities to a more manageable size, performing additional due diligence before taking a position.
Topics Covered:
2:30 - Jonathan Moreland's back story: A history of insider trading 14:20 - The anatomy of a successful "hit rate" 15:15 - Types of insiders: CEOs and other C-level executives vs. Directors; Individual track records are more instructive than titles 19:30 - Jonathan's research process broken down: Just because an insider likes a stock doesn't mean investors have to 23:30 - Insider data is independent and "spin-free" 25:30 - Can investors use broader insider buy and sell trends to help construct a broad market outlook? 30:00 - Technical analysis as a way of timing entry and exit points 36:30 - A recommended sector from the perspective and insider activity: Social Media including plays like Facebook (FB) and Snapchat (SNAP) 43:30 - Advice to new investors and parting words