Wednesday's Wall Street Journal carried a short piece titled "Insiders Buy Ignored Biotech Cerus" (subscription required for online access). It described how some investment funds use insider trading patterns as a tool for stock selection. The central idea was that insider trades make a better indicator for "neglected" stocks (those with few or no analysts covering them).
It's a good piece to focus discussion on efficient markets, asymmetric information and signaling, and the role of analysts as information producers.
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