Watch Insider Trade Stocks

Systemax Inc. (SYX) shot up 70% in several weeks after several insiders bought shares in March 2008.

Gold Inc (FCX) shot up more than 90% in 6 months after insiders bought $62 millions worth of FCX stock in the first quarter of 2007.

Dorchester Minerals LP (DMLP) advanced 50% after company insiders began purchasing its stock at the beginning 2008.

Capstead Mortgage Corp. (CMO) increased 100% after insiders at CMO bought shares in 2006 and 2007.

American Pacific Corp (APFC) advanced more than 100% after several insiders purchased its shares in the first half of 2006.

SandRidge Energy, Inc. (SD) insiders bought millions of dollars of their own company's stock at the end of 2007 and beginning of 2008. Subsequently SandRidge Energy stock shot up more than 100% in just a few months.

Hercules Offshore, Inc. (HERO) is up 55% in a few months after insiders bought several million dollars worth of HERO stock in the first quarter of 2008.

FX Energy Inc. (FXEN) insiders made their biggest stock purchases in March 2008 when FXEN share prices bottomed out. FXEN is up 40% after the purchases.

Many investors have heard the term Insider trading and usually associate it with illegal conduct. In fact the term includes both legal and illegal conduct. The legal version is when corporate insiders (officers, directors, and beneficiary owners) buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

Illegal insider trading refers generally to insider buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. See insider trading definition for more details.

Never before has monitoring insider trading become so easy. Insiders (corporate officers, directors, and beneficiary owners) are now required to report to the Securities and Exchange Commission (SEC) within two business days after they trade stocks of their own companies. We report this vital insider buying and selling information to the public in daily, weekly, monthly, and real-time reports.

Insider trading analysis guru George Muzea wrote a book called The Vital Few Vs the Trivial Many: Invest with the Insiders, Not the Masses. (See link in page insider trading resources). He called corporate insiders "the vital few" and investor masses "the trivial many". By following the vital few, he made big profits in the stock market for himself and for his corporate clients.

Note that insider stock trading activity should not be used as a simple technical indicator when deciding to buy or sell a stock. However, insider buying and selling activity is a good starting point to further investigate a company, either by analyzing the fundamental data of the company or by studying other insider trading related matters such as the stock trading history of the insider, the type of insider (officer or beneficiary owner) etc.