One of the most common discussions among investors is whether you can really beat the market and how much information is already baked into stock prices. Technicians say they can follow historical patterns to make money on fast trades. Fundamental analysts say they can make money on careful analysis of public filings. The “indexers” say all historical and public information is already reflected in prices, so there’s nothing new to be earned from analysis. All of these arguments are pretty hard to prove one way or another. But there is one thing they all agree on: Insiders have the information… Read More
One of the most common discussions among investors is whether you can really beat the market and how much information is already baked into stock prices. Technicians say they can follow historical patterns to make money on fast trades. Fundamental analysts say they can make money on careful analysis of public filings. The “indexers” say all historical and public information is already reflected in prices, so there’s nothing new to be earned from analysis. All of these arguments are pretty hard to prove one way or another. But there is one thing they all agree on: Insiders have the information that moves stocks. #-ad_banner-#That’s why insiders must file multiple reports with the Securities and Exchange Commission (SEC) about their relationship to and ownership of the company. And that is where one of my favorite stock-picking clues comes in. Corporate officers, directors and any beneficial owner with more than 10% of a company’s shares must file Form 3 with the SEC within 10 days of the beginning of their relationship with the company. They must then file Form 4 within two days of any change in ownership, including buying or selling shares. When investors get their hands on these filings, it… Read More