As we know, the insiders have a gigantic advantage when it comes to the stock of their own company. They’re the ones who know the most important news first, and they have the chance to act on it if they want.
When several insiders all start buying the same stock at once, it’s called a cluster purchase. These cluster purchases often nets some BIG results.
And I’ve just identified one particular cluster purchase that’s very intriguing. Why? Because it’s also a bargain stock right now…
One thing to note about insiders is that they can be selling their own company’s stock for any number of reasons…
- Maybe they need cash to pay for a child’s college tuition.
- Maybe they want to invest the money elsewhere.
- Maybe there are medical issues within the family for which the money needs to be allocated.
- Maybe they know something about their company that is telling them to get out now.
- Maybe they just feel like selling…
The point is that it’s difficult to pinpoint one single reason for why Insider #1 is selling Stock A. When multiple insiders are selling the same thing at the same time, it’s a different story (but we’ll cover that at another time).
But when an insider is buying stock in his own company on the open market, it’s for one reason alone:
He or she thinks the stock price is going to climb, so he or she buys to profit from it.
That’s it.
So obviously insider buying should weigh heavier when we’re investigating insider transactions, but especially when it’s more than one.
And there’s recently been cluster buying by insiders in Total System Services (TSS).
TSS provides electronic payment processing services to banks and other financial institutions in the United States, Europe, Canada, Mexico, and internationally. It operates through four segments: North America Services, International Services, Merchant Services, and NetSpend.
Now, cluster insider buying happens from time to time, but this is a unique one.
Why?
It’s unique because TSS is what many consider a bargain stock right now after falling from $56 per share to under $40 per share yesterday!
That fall triggered some insiders of TSS to buy up shares in the amount of 20,700 for a total value of over $800,000 on the open market…
That’s a very clear sign that these insiders see the current price of TSS as too low and expect it to rise.
This could be a way to make some quick money just by copying the insiders, but I want to wait and see if there’s buying power behind this stock. If it begins picking up momentum, this could be the easiest 20% gainer you ever pick!
If my alerts all go off for this stock, CHIRP subscribers will be the first to know. Check for a special invitation to join CHIRP in your email inbox.
Thanks.Look forward to any news