{"id":69284,"date":"2015-03-10T05:04:14","date_gmt":"2015-03-10T09:04:14","guid":{"rendered":"http:\/\/countingpips.com\/?p=69284"},"modified":"2015-03-10T07:13:06","modified_gmt":"2015-03-10T11:13:06","slug":"oil-insiders-bullish-for-their-own-stocks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/03\/oil-insiders-bullish-for-their-own-stocks\/","title":{"rendered":"Oil Insiders Bullish for Their Own Stocks"},"content":{"rendered":"
March 10, 2015<\/div>
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By WallStreetDaily.com<\/span><\/a> \"Oil<\/p>\n

By Karim Rahemtulla<\/a>, Chief Resource Analyst<\/em><\/p>\n

Last November and December, many believed the oil crash<\/a> had hit bottom, and a horde of insiders bought shares in their own companies.<\/p>\n

I\u2019m not talking about just a few thousand shares, either\u2026 They scooped up hundreds of thousands of shares \u2013 ultimately betting millions on oil\u2019s imminent rise.<\/p>\n

Continental Resources<\/strong>\u00a0(CLR<\/a>) CEO Harold Hamm, for instance, purchased 71,000 shares for $67 each in September!<\/p>\n

But just after the buying spree, the price of crude oil dropped<\/em> another $20 per barrel, and only recently has it started to recover.<\/p>

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So what are we to think? Clearly, these insiders were fooled by a false floor. Here\u2019s what we can learn from their blunder\u2026<\/p>\n

Following the In-Crowd<\/h2>\n

Insider buying is one of the best indicators of the future success of a company\u2019s share price. Especially when insiders buy in clusters, as it shows conviction within the management structure.<\/p>\n

Obviously, insiders at a company are privy to information that outsiders aren\u2019t.<\/p>\n

Thus, when they trade on that information, they must follow strict rules that restrict when they can sell. Generally, insiders can\u2019t sell for at least six months after they\u2019ve made their purchases.<\/p>\n

Most insiders don\u2019t buy shares to trade, however. They buy because they see long-term value in their company. Buying shares is a way to participate in that value creation.<\/p>\n

Here\u2019s a list of companies that saw substantial insider buying. It includes the price point close to where they bought, and where shares are trading today\u2026<\/p>\n

\"Insiders<\/p>\n

Unfortunately, the insider track record, for the most part, isn\u2019t looking very pretty\u2026<\/p>\n

Foolhardy Play or Methodical Move?<\/h2>\n

It could be too early to pass judgment, but it\u2019s rare that insiders buy too early, as they did in the case of the energy price collapse.<\/p>\n

Judging by the sheer volume of trades in November and December, they were buying with the hopes that oil prices had bottomed in the $60s. But as we all know, they fell below $43 a few weeks later and have only recently been able to trade around $50.<\/p>\n

Of course, the question is\u2026 how can individual investors stand a chance in the energy patch when the insiders themselves haven\u2019t been able to call a bottom?<\/p>\n

It\u2019s a lesson in investing in a commodity-based sector, really.<\/p>\n

Companies can have the best management, the best properties, and the best intentions. But, when the market price of the underlying commodity is something you have no control over, then you\u2019re flying just as blind as everyone else during an adjustment or panic period.<\/p>\n

There\u2019s something more powerful to be gleaned here, however.<\/p>\n

Heavy insider buying identifies the few companies out there with management who\u2019s confident enough in their abilities to put their own money at risk with open market purchases.<\/p>\n

Those are the companies that deserve your attention. Insiders are rarely wrong about their purchases over the longer term.<\/p>\n

And the chase continues,<\/p>\n

Karim Rahemtulla<\/p>\n

P.S.<\/strong>\u00a0Today, America is on the verge of energy independence. And there\u2019s no doubt that it will lead the way for growth in the next decade. But is that enough to launch the country into a new Golden Age? That\u2019s the question\u00a0Wall Street Daily\u2019s<\/em>\u00a0Chief Resource Analyst, Karim Rahemtulla \u2013 along with over two dozen top investment experts \u2013 will answer this coming March in St. Petersburg, Florida. The Oxford Club\u2019s<\/em>\u00a017th<\/sup>\u00a0Annual\u00a0Investment U<\/em>\u00a0Conference will be held there from March 11 to 14.\u00a0Click here<\/a><\/strong>\u00a0now for the details.<\/p>\n

The post Oil Insiders Bullish for Their Own Stocks<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com By Karim Rahemtulla, Chief Resource Analyst Last November and December, many believed the oil crash had hit bottom, and a horde of insiders bought shares in their own companies. I\u2019m not talking about just a few thousand shares, either\u2026 They scooped up hundreds of thousands of shares \u2013 ultimately betting millions on oil\u2019s […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-69284","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=69284"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/69284\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=69284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=69284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=69284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}