Alternatively, you might like to conduct a serious research product on the relationship between insider trading and stock price movements to determine the value of this information.
I actually have (I'm new but I've done some homework)
. Here is a book by the chair of the finance department at the University of Michigan business school, which studies insider trades between 1975 and 1995. During the 20 years insiders were able significantly beat the market:
http://www.amazon.com/gp/product/produc ... 8&n=283155
For example, he claims that top executives in small firms (<$25M) buying shares in their own companies had 12.3% net return (i.e., 12.3%
over the average market return) over the next 12 months. I think this sounds very impressive.
I may be wrong (which is often the case), as I am just speculating here and have done no tests myself, but my guess is that this information is of negative value when you include the cost of the information, the time spent reviewing it, and the opportunity cost of both.
I agree, the biggest challange that I find it to weed out all the noise information, but I do believe there are some interesting trades to be followed.
Another aspect of it that I'm noticing is the "news" factor. For example, take HGSI, which has started the discussion. The report came out yesterday, the stock is up over 5% today... and, of course, I didn't get in!
... Well I still don't like the fact that the CEO is new to the company and that the COO had sold 5 times the amount just two days before the purchase.