11 Canadian Tech Stocks with Recent Insider Purchases
There is one quote you hear more often than any other on the subject of insider buying. It is from legendary value investor Peter Lynch, who said “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
But is this piece of wisdom, which was part of many “rules” for investing included in Lynch’s famous books One Up on Wall Street and Beating the Street, really valid?
Forbes contributor Josh Brown says that while there is nothing negative about insider buying, there is also very little meaning to the action. Brown says some insider buying is just window dressing from execs intent on portraying an air of confidence in their company.
But how do stocks with insider buying actually perform? SmartMoney’s Elizabeth O’Brien recently pointed to evidence from University of Michigan Finance Professor Nejat Seyhun, who studied a twenty-year period of insider buying and market performance starting in 1975, concluding that a high degree of insider buying is very reliable indicator.
Below we list eleven Canadian tech stocks with recent insider purchases.
This story is brought to you by Serenic (TSXV:SER). Serenic’s market cap of $3.18 million (as of January 27th, 2012) was less than its cash position of $4.03 million (as of Q2, 2012). The company has no debt. Click here for more information.
Anthony Andrukaitis, who joined the board of Kelso last August, has been buying, including 50,000 shares on March 19th. Kelso CEO Bond….James Richard Bond, to be exact, bought 19,000 March 1st. And Neil Gambow, CEO of Kelso’s US operations has been buying, too.
Toronto IT player Softchoice has also been on a tear of late, spiking from $8 in October to $13 today. But insider Allan James Reesor, who picked up 5000 shares March 19th, and CEO David MacDonald, who bought 2000 shares March 8th, are undeterred.
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Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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