Tuesday May 24, 2022

Insidei now two signals for a suitable purchase action

The owners of companies traded on the stock exchange buy shares of their own companies. Large purchases occur mainly in the telecommunications, engineering, energy or materials sectors.

The shopping event owned by the company to their owners (insider trading) is very often Brno as a good signal for other investors to buy. Especially when US stock markets fell the most in January in 18 years due to fears of a recession in the US.

Insidei are the manager, director and owner of a significant share in the company, who are expected to be familiar with the situation and future prospects of the company more and better than others. Insidei know practically everything about society, HV. They know the company’s management, development of new products, candidates for the market, have information about employees, suppliers, customers, competitors, etc.

But they also have an unfair advantage when they trade in the shares of their own company. You know information that will never be made public. Therefore, their nkups, resp. sales to other investors know a lot. In order to prevent the misuse of information for the insider’s own benefit, all their operations with shares are controlled and must be reported to the supervisory authorities that regulate the financial markets.

There are millions of reasons to sell insidei, but only one reason to buy…
In January of this year, for the first time since 1995, insider purchases exceeded sales. Many investors see this as an unmistakable signal that the stock markets have bottomed out after the sell-offs, and now there is a fair amount of time to buy.

According to the Washington Service, total purchases of managers in 1,911 companies reached $ 683 billion in January and were 1.44 times higher than total sales. The S & P500 has never fallen historically in the last twelve months in the last 20 years, as the company tracks these statistics.

Large purchases occur mainly in companies that belong to the telecommunications, engineering, energy or materials sectors.

The past will never guarantee future gains
There are also bags that do not see the much-coveted stock market in large insider purchases. According to them, Manaei may underestimate the impact of the slowdown in the US economy on society’s revenues. The company’s profits from the S&P 500 index, which reported its results, fell by an average of 25% in the fourth quarter, the economy grew by only 0.6% and the construction of new houses fell the most in the last 26 years. The losses and write-downs of banks such as Citigroup, UBS or Merrill Lynch are perhaps to be mentioned.

According to short sell (speculation of a decline) on the New York Stock Exchange rose to 3.7% of total trade, the most since 1931! This is also one of the reasons that should, despite the optimistic word about buying managers and the growth of the index from the past, encourage investors to start whether they start shopping now just because the owner of large companies is doing so.

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