What this CEO is betting millions on…

Sean BowerOn Wall Street, confidence can be measured by how much money someone bets on the future of a stock or other security.

When the CEO of a company shows significant confidence in his own company’s stock, it could be the first hint on an investigation that leads to profits for you!

And one particular CEO is betting millions on his company’s stock right now…

Of course, the significance we put on a trade should take into consideration how much a person has to begin with, but anytime someone dumps millions of dollars of their own money into a stock, it’s time to dig deeper.

And when that person dumping millions into it is an insider of the company of which the stock purchased is from—let alone the CEO—the transaction has even more credibility.

In early November, the CEO of Sonus Networks, Inc. (SONS) bought 1 million shares of his own company’s stock at $3.43 for a total value of more than $3.4 million!

When I saw this trade, 3 things jumped out at me right away…

  • It was the CEO of the company who made the purchase, so we know he has access to more information on the company than anyone else.
  • The total value of the trade was over $1 million, which is a serious sign of confidence that the price of the stock will rise.
  • The price of the stock is just $3.43 per share, which makes SONS a penny stock!

I’m excited about #3 because penny stocks have the most potential in the stock market for 1 trade to reach gains in the thousands of percent!

And I get excited for big-money potential.

But what is SONS?

This technology company provides networked solutions for communications service providers and enterprises.

Over the past 3 quarters, SONS has experienced good, steady growth, and if you look at the recent purchase of stock made by the CEO, you might expect that growth to continue.

Since insiders only buy shares because they expect the price to go up, leaving them with a profit, this CEO is willing to bet a few million dollars that the price of SONS is about to go up.

Now that we’ve seen this information early, we have a chance to capitalize and profit from it, but only if this stock gives off the right indicators at the right time.

If/when that happens, I will send that stock recommendation straight to readers of my Penny Stock Insider newsletter, which is available on WallStreetInformer.com.

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