In many instances, buying is the best way for insiders to propel their company’s stock higher and turn easy profits.
When one insider decides to buy, we shouldn’t be worried. If three insiders buy at the same time, we might want to take notice.
But when 7 buy at the same time, those insiders are working together, and we need to be alert so we can end up making huge profits alongside them!
That’s why I’m tracking this company with some of the most insider buying in the entire market…
Think about it, how much of coincidence can it be when more than a handful of insiders for the same company decide to buy stock in that company within a week of each other?
7 insiders of Royal Bancshares of Pennsylvania (RBPAA) have bought RBPAA stock just since last Wednesday, and even more have done so since the beginning of the month!
But why are they buying so much stock?
Here is the chart for RBPAA from Stockcharts.com:
Ah, a penny stock! And we can see by looking at the right part of this weekly chart that this stock has gone from $1.50 to over $3 and back down to $1.60.
A roller coaster ride like that can make anyone emotional, especially the insiders with a very real interest in RBPAA.
It appears that this stock is now bouncing back up, BUT I want you to think about the recent insider buying. That is most likely the driving force or sole reason for the uptrend in the very last movement of RBPAA’s price.
I have three theories about this stock:
First, the insiders see the low price as a bargain, so they are following each other into buys and hoping for it to climb back up to $3. In this case, we shouldn’t follow. Buying a stock just because it has a low price is never a smart move.
Second, the insiders are trying to pump and dump by buying stock to make the price turn upward, waiting for the public to be tricked into buying, and then selling it back for quick profits. We can avoid this by tracking their actions closely to see if they begin selling the stock back to the market.
Third, the insiders know some piece of inside information that has the potential to make this stock rise. They are trying to get in at a low price and ride it to the peak. We can capitalize on this because we are seeing it so early. If other indicators start to give us a buy signal, we can confidently invest in this stock.
All you need to do is know how to read the indicators that tell you when to buy and sell, which is something we teach in our Stock Code Breaker course.
