There’s a simple reason why we track every move of company insiders — they know what the market doesn’t know yet.
It’s obvious: “best traders you’ve never heard of” know what’s going on in their company. They know if something big is about to happen.
Furthermore, they have “skin in the game.” They sink giant chunks of capital into their stock. If that’s not a vote of confidence in a company, I don’t know what is!
Following these insiders without knowing why they’re snagging shares is often enough to find HUGE profit opportunities…
And that’s exactly what we did on an early-stage biotech startup.
In the middle of July, we saw a “cluster buy” on this company. That simply means several insiders grabbed truckloads of their firm’s shares. If one insider buying is a good sign… multiple at once should set off most traders’ “buy” alarms.
Yet, at the time, we had no clue what the catalyst for these buys was. Only the insiders knew — and that’s why they bought, of course. Since it’s a biotech business, we thought perhaps one of its pipeline drugs would successfully complete phase 1b trials.
Then, two pieces of news hit HARD, one after the other.
First, this company had secured a patent for an ovarian cancer treatment of which they were the exclusive licensee. Not long after, on August 25th, they published a press release stating they discovered a method to reduce replication of the COVID-19 Delta variant.
Can you guess what happened to the stock price?
At the time of me writing this, the stock is up a whopping 52%. We expect the good news to keep on rolling in, too.
Just goes to show that the best traders aren’t necessarily even traders in the first place. They’re the people in the company!
Now, if you want to know how we discovered this cluster buy…