Insiders just bet $748,000 on this

It’s not even enough to call the insiders’ money “smart money” – it’s really more like “sure thing money”, considering the insiders are the ones who know the type of information that moves stock prices.

Following their money trail is a very profitable business, and it’s not difficult to see why.

And that’s exactly why I’m writing to you today…my alerts have been flashing nonstop since insiders have started throwing hundreds of thousands of dollars at this…

It’s a penny stock that you can buy a share of for about $3 right now: Ruby Tuesday Inc. (RT).

So here are the questions we need to ask about this insiders’ favorite:

• Why are the insiders buying?
• How much are they buying?
• Should we follow the money trail?

Let’s get right to it…

First of all, insiders – the officers, directors, and 10% owners of any company – can sell stock for any number of reasons. Perhaps they want to invest the money elsewhere, or they need the cash to pay for their child’s college tuition, or any other number of reasons.

But an insider only buys their company’s stock for one reason: they think it’s going up, so they want to make money on it.

So while there is certainly a more specific answer to the question, “Why are the insiders buying?”, all you really need to know is that they buy because they expect the stock to rise.

And we should listen to them because they’re the ones who gain access to the privileged information about their company that the public won’t learn about for weeks, months, or maybe ever!

Then the question becomes about the amount insiders are dumping into their company’s stock. Is it just one or two insiders trying to make a nice chunk of change, or is it a host of insiders throwing BIG money at it?

Just this month alone, NINE insiders of RT have purchased 275,000 shares for an estimated value of about $748,000!

That’s BIG money…

So now we find ourselves staring at the most important question of all: should we follow the money?

Let’s look at some facts about RT stock:

• RT is now priced at approximately $3 per share.

• RT has been declining since a $9.72 high in 2013, and an $8.34 high in late 2014.

• More recently, RT is up from a $2.34 low to start the month, which is a fast gain of nearly 30%

Looking at that information, we can conclude that A) there’s plenty of upside for a stock that’s been down for so long, B) we’ve already seen this stock get a strong bump from insider support this month, C) RT stock is just now bumping up against a downward trend line.

So a simple climb back up to the 2014 highs would turn $1,000 into $2,780, but only if RT is able to overcome this downward trend resistance…

A move up to $3.50 should put RT clear of that line, and then we should be collecting paychecks while this stock fights its way through selling resistance with the help of strong insider backing!

When this enters the right buy zone, I’ll immediately be alerting subscribers of the C.H.I.R.P. program. Check your email for a special invitation to join.