Inside Alex’s Proprietary Screening Program
Let’s go behind the curtain to see exactly how Alex interprets the insider messages – so you can take them to the bank.
Key Insider “Tip Off” #1 – Alex is looking for large six or seven figure transactions. He doesn’t put much weight in someone investing $30,000 or $50,000.
After all, top industry executives commonly make so much money, tens of thousands of dollars is simply not that big of a deal.
So Alex looks for insiders buying hundreds of thousands or millions of dollars worth of the stock. That’s a reliable sign that they’ve got plenty of their own “skin in the game.”
Key Insider “Tip Off” #2 – Alex keeps a keen eye out for what he calls “buying clusters.” Rather than just one “Lone Ranger” insider, he wants to see not only the top executives but also lower level officers and employees buying – and the more the merrier!
Alex knows that when you see a broad spectrum of people at the same company buying – including the lower level employees – it means a lot of insiders realize the stock is selling far below its intrinsic worth.
Key Insider “Tip Off” #3 – Another factor Alex weighs is the track record of the insider. Some have a great history… and others don’t.
For example, John Sculley drove Apple into the ground in 1993– and his insider shares plummeted, too. Meanwhile, guys such as Doug Bergeron, CEO of Veriphone, just keep making winning calls over and over again.
Key Insider “Tip Off” #4 – Perhaps the most critical factor Alex looks at is what he calls “the divergence indicator.”
It’s pretty typical to see insider buyers rush out of the woodwork when some bad (but not TOO bad) news comes out. The stock price plummets and the insiders gobble it up. And sometimes that’s even enough for the stock to head upward again.
But Alex is scanning for exactly the opposite situation.
Let’s say a stock’s hitting new HIGHS… yet there’s STILL insider buying. That turns out to be an even better signal. Just think about it…
If they are buying at $20 when they could have bought at $15 a few months ago…
Well, basically the insiders are saying, “Sure, the market realizes we are good – but they don’t know HOW good we really are.”
Those factors – and many many more – go into Alex’s decision on if, and when, to get into a play.
And remember, with Alex guiding you, successful recommendations and breathtaking gains could be yours for the taking just moments from now… for example…
Multiple Triple Baggers in Just Weeks
On November 16, 2009 Alex noticed L-3 Communications Director Robert Millard had recently purchased 10,000 shares, an investment of $731,400, and issued a “Buy” recommendation.
On January 11, Alex recommended his readers exit this play. They could have taken a 305% gain in 56 days.
Insider Alert reader, Owen Ulnis, didn’t seem disappointed to tell us: “I made 230% on L-3.Thank you.”
Subscriber Dr. Bob Wyatt did even better. “On L3 I’m up +411% (closed as you recommended with 411% gain today),” he wrote us.
Then there was Alex’s Bank of America play. Directors Robert Scully and Charles Holliday bought $491,000 – and $378,000 – worth of the stock in early November.
On the 15, Alex told his readers to get onboard. When Alex recommended his readers exit this play on January 17, they could have taken a 318% gain in just 63 days.
Insider Alert reader Rick Santos from Austin TX wrote to thank Alex: “Your recommendations are almost always right… your strategy has worked consistently well for me. For example with BKS, who can complain about a 125% gain or a 300% gain. Thanks for the GREAT work!”
And Alex was just getting started…
His next play was a company you certainly patronize – NYSE Euronext – better known as the New York Stock Exchange.
In mid-February, Alex saw that CEO Duncan Niederauer had just purchased 25,000 shares, an investment of more than $600,000. Alex’s additional filters indicated the time to get in was now, and he alerted his readers on February 22.
The company almost immediately began a relentless march upwards. When Alex issued his “Sell” recommendation on April 13, his Insider Alert readers could have booked a 447% gain in 50 days.
As you can see, Alex’s proven techniques rack up winner after winner, over and over again.
“Up about $3,200 today. Thanks,” writes Insider Alert reader, Jim Summers.
Elliot McNamara told us: “Sold HTE on October 23rd for $9.31 for a $666 profit, or 31% profit in two days.”
But Insider Alert reader, Joseph Kilwin, may have put it best: “Fantastic call on STX!! I made over 70%. You are right so much of the time I have all but stopped researching stocks on my own,” he said.
And now it’s time for YOU to get in on the action.
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