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Skin in the Game: Another Lesson Courtesy of Bernie
Madoff |
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-- By
Amy Calistri |
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How much of his own money
did Bernie Madoff have invested in the asset management arm of his
company, Bernard Madoff Investment Securities LLC? Not a dime -- and
for obvious reasons. Madoff knew his operation was a Ponzi scheme.
After all, he set it up that way.
When you poison the water, you're hardly the first one
in line for a drink at the well.
But avoiding a poisoned investment scheme is just one
reason why investors should want insiders investing right along side
them.
(Full
Story Below) |
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Also in Today's
Issue... |
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"Yield Doubler" Portfolio Adds New Sixth Pick -- All
6 Up Double-Digits |
Since
the launch of his "Yield Doubler" portfolio in February,
Nathan Slaughter and his Half-Priced Stocks
followers are looking at double-digit gains of +13.5%,
+13.8%, +22.0%, +24.4%, +30.8% and +57.3% for all six of
his picks.
If you're missing out on the profits above, don't worry,
because Nathan thinks these six "yield-doublers" can
appreciate another +105%, +145%, +94%, +262%, +118% and
+305% before reaching his fair value estimates. You
still have time to get in, but you have to act fast so
you can capture the biggest profits!
Go here to
profit today. |
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The
Death of the PC
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The days of forking
over costly fees for software upgrades are numbered. The PC will
soon be obsolete and Business Week reports almost 70% of
Americans are already using the technology that will replace it.
In fact the biggest names in computing - IBM, Yahoo! and Amazon -
are spending hundreds of millions to harness the potential of this
technology. Everything you need to know about this phenomenon --
including two stocks you must buy -- are all in the free report from
The Motley Fool called, "The Two Words Bill Gates Doesn't Want You
to Hear..."
Click here for instant access to this report. |
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Skin in the Game: Another Lesson Courtesy of Bernie
Madoff
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When most people hear the
term "insider buying," unfortunately the first thing they
think of is illegal insider trading -- when a company
executive or insider trades on information that has not been
made available to the general investing public. Obviously
that's not the kind of insider buying you -- or the
Securities and Exchange Commission -- want.
Insider Buying = Higher Stock Prices
A number of studies have shown
that good things happen when insiders invest in their own
companies. The most famous work was conducted at the
University of Michigan by Professor Nejat Seyhun, who
compiled data on over one million insider transactions over
a 21-year period.
According to his findings, stocks aggressively bought
by insiders outperformed the market by +8.9% in the 12
months following the transaction.
There are a number or reasons to explain this
phenomenon. Clearly the most obvious is that when a company
is confident about its business model and prospects for the
future, company executives want to be along for the ride.
But there's another, maybe, less obvious reason.
Insider Ownership = Shareholder Friendly Stocks
When company execs invest in
their own company, their interests are better aligned
with those of their investors. They feel the pain when the
stock slides. They share the gain when it rises.
As insider investors, executives are more in tune with
issues that concern the company's shareholders. They are
likely to have more transparent accounting policies and
solid, complete disclosures -- and therefore will be less
likely to generate negative surprises for shareholders. They
will be more open to shareholder-friendly policies like
stock buybacks and dividend distributions can directly
enhance shareholder value.
Every publicly traded company will say they have
shareholders' interests at heart.
But its one thing to say it. It's another thing to
actually have "skin in the game."
StreetAuthority Kicks In $50,000 for
Stock of the Month newsletter
My company understands how
important it is to have skin in the game. That's why they've
invested $50,000 of the company's money in Stock of the
Month's investment picks. They absolutely want my
newsletter to be aligned with the interest of every investor
out there.
And I absolutely love it. It makes me want to work that
much harder to find that one great investment opportunity
each and every month. It also is why I'll never have more
than 12 investments in my "Stock of the Month" Portfolio.
I want to be able to watch each investment like a hawk.
I want to minimize any loss and maximize every gain.
And investors will actually get a chance to do one
better than my own company. Subscribers to my monthly
newsletter get their newsletter 48 hours before
StreetAuthority gets to execute its trade.
 
-- Amy
Calistri
Chief Investment Strategist -- Stock of the Month
StreetAuthority Investor Update
P.S. If you like to learn more about my
newsletter -- and why StreetAuthority is so confident about
Stock of the Month, just
visit this link.
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Worth Noting
For companies dreaming about going
public, this week provided something to get excited about,
finally. Two initial public offerings priced, making April the
busiest month since August 2008 for stock debuts.
--
TheDeal.com
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Who Cares if We're at a Bottom When You're
Pulling in $32,830 a Year in Dividends?
With the safe, growing, high-yield picks
that Editor Carla Pasternak recommends every month you don't have to
worry whether or not the market has bottomed. You can sit back and
collect annual dividend paychecks of $10,100, $19,400 or even
$32,830! You can't go wrong looking into Carla's recommendations. A year from now,
when you've collected as much as $32,830 from dividends alone you'll be glad
you did.
So take the first step and
read this
report now |
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Recent
Articles
This
Asset Class Beats the Market Year in and Year Out
By Paul Tracy
April 7, 2009
This asset class has
outperforms the broader market by +17% following major market
bottoms -- making now the perfect time to get in.
Read
On...
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How
Just Three Letters Can Juice Your Gains By a Factor of Five
By Amy Calistri
April 14, 2009
There is a special asset
class made up of the strongest companies in the world. In almost
every respect, they represent the best of the best. And right now,
U.S. investors have the opportunity to make five times the gains --
by just knowing three letters.
Read
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Research
Reports
Atomic Gains: The Promise of Nuclear Energy
For decades nuclear power was seen as a dangerous
technology synonymous with disasters like Chernobyl. But
today's nuclear power plants have never been safer -- and
they produce power at one of the cheapest rates around.
While nuclear may not have the promise of wind or solar, it
is a tested and reliable source of energy with an already
ample base. We've found several securities with exposure to
nuclear power.
Read
our report now.
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