There are some areas of the market where insider transactions should be taken more seriously than others. For example, an insider buy in the pharmaceutical section of the market could tell you that a company may have just created a new vaccine, and the insiders could be giving you a hint leading to profits.
And the section where the insiders’ actions are most potent is penny stocks. Their buying and selling can make up a large percentage of the daily trading occurring for their company’s stock, so they have the ability to change the price to their benefit.
That’s why I’m extremely excited that I found one of the insiders’ favorite penny stocks…
In the past 7 days, the insiders of Violin Memory, Inc. (VMEM) have showed me that they are very confident in their own company’s stock.
And that stock just happens to be a penny stock!
VMEM develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers, and networks worldwide.
In the past week, three different company insiders have combined for four purchases of stock in VMEM. Two of these insiders are directors and one is the CFO!
They bought a total of 155,000 shares that totaled an estimated value of approximately $660,000…
That looks like a pretty obvious insider hint to me.
Now that we know the insiders are interested, let’s take a look at the chart of VMEM from Stockcharts.com:
This is a very interesting chart, and one that the insiders have seemed to begin pushing upward at the very end.
As you can see, VMEM is very much still a penny stock at $4.54 per share, but with the way the insiders are buying, it may soon not be.
The secret to making BIG profits from penny stocks like this one is knowing WHEN to buy and sell. And this could all be done for you through our Penny Stock Insider monthly newsletter.
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