Studies suggest that multiple insider purchases within a three-month period often signal big gains to come. The biggest returns were found after insiders purchased shares of stock at historically low valuations. This isn’t surprising considering insiders sell for a variety of reasons, but buy for only one: to make money.
GuruFocus has insider tracking tools that let you follow CEO and CFO purchases, as well as clustered and repeat purchases. This month, two companies caught my eye, with their respective CEOs buying shares worth as much as $10 million. One of the companies is controversial, while the other looks downright cheap.
General Electric Co. (NYSE:GE)
GE stock has been a dog for more than 15 years. Despite several brief turnarounds, investors have lost 74% of