I've been looking at $AVEO recently. This link shows insider trading on $AVEO:
There were $6 million dollars worth of shares acquired by insiders at $0.50 a share on 3/29 roughly 3 months before they announced news that caused a spike.
http://openinsider.com/search?q=aveo
Theory: All people who buy stock do so thinking or hoping that they will be able to sell that stock to someone else for more later. Insiders are driven by this too, only they know more about the inner workings of their company than we do. However, we know they buy/sell stock to avoid losing money or to make money. Reading SEC fillings is effectively insider information.
Ticker on Watch List: $CYDY
horrible company, garbage management (from what I hear on yahoo's message board for the stock), and a lot of bag-holders.
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001175680&type=&dateb=&owner=only&count=40
Roughly half a million dollars in shares converted at roughly 2% below market value by multiple directors. If we can assume: they buy stock in hopes of selling it for more, they know something about the stock we don't, and they have bought the stock, we can reason they did so for a reason that is under their control. Granted they can be wrong, wouldn't be the first time.
However, it is a worthwhile bet. I do not expect this to move at all for a few months, but I will keep my eyes on it every day once a day before the open for a news release. The insider trading probably has to do with their phase 2 trial for HIV treatment (promising results already).
Again, this is not certain. They could have made a mistake in their lab, or been lied to by their scientist for all I know. However it is a worthwhile bet to make. I will get in this when it looks to settle down in support and wait a while. If I notice a major sell-off, I will assume insiders are getting out and leave with them. If not, then it's a waiting game while I explore other stocks.
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