wpe2D.jpg (33251 bytes)     TigerSoft Studies
   of Insider Trading  
=======================================
   William Schmidt, - Tiger Software's Creator
   (C) 2012 William Schmidt, Ph. D.  -
   All Rights Reserved. 
              
Last updated 6/30/2012
   "Use TigerSoft and you'll see what insiders
   are doing, rather than be fooled by what
   they are saying."


  
          Send any comments or questions
             to william_schmidt@hotmail.com

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            "INSIDER Trading" IS RAMPANT!

         Don't Get Mad, Get Even!


          Watch for Insider Trading and
      Watch if Wall Street Professionals are buying or selling.


                  We at TigerSoft are interested first in the  UNREPORTED, UNOFFICIAL
        INSIDER TRADING in stocks & commodities done by the associates, colleagues
          and friends of  the corporate insiders who are legally obliged to (and usually do)
          report their own scheduled insider stock transactions in the companies they run.
          We are interested second in how
Professionals view the the stock.


                                                             Sample TigerSoft Chart
         Watch for::
        >1. Bulges of Insider Buying and Insider Selling with Tiger Accumulation Index surpassing key thresholds..
        >2. when Institutional buying (blue Accum Index) turns to Institutional Selling (red Accum. Index).
        >3. changes in trends of the blue Tiger Closing power.
        >4. changes in trends of the blue Tiger Day Traders' Tool.

wpe25CF.jpg (86182 bytes)
AMAT2.BMP (499254 bytes)
                 It is this UNREPORTED and UNOFFICIAL Insider Buying which gobbles up
          the available float of a stock and puts it into tightly controlling hands that are not quick
          to sell with only small gains and usually wait a year to sell.  With the float reduced,
          the stock can rise much more easily.  It is this insider buying or selling which
         
Professionals become aware of and partake in, the buying often in a carefully
          controlled way to prevent the stock from rising too much at first, so that they can keep
          accumulating it.

                We look for the signs of the unreported and unofficial Insider Buying by friends
          and associates of the higher-ups in a corporation when the fortunes of their company
          are about  to improve dramatically.  We spot this in the form of bulges from our
         
Tiger Accumulation Index above the +.375 threshold.  Such buying should be
          confirmed by buying by Wall Street Professionals, who typically quickly become aware
          of any significant insider buying.   Accordingly, the
Tiger Pro-Closing Power, which
          registers what professionals are doing, should turn up.  In cases where a significant
          stock rise becomes expected by Professionals, our
Tiger Day Traders' Tool will
          break its downtrend and start rising.
        Links to Explore:

      Explosive Super Stocks       Killer Short Sales in Any Market


    Contrast the TigerSoft Charts of the biggest winners, ACAT, AKRX, ASPS, LQDT, MNST, MNTG,
        PCYC, SCSS
with the biggest losers, ALSK, DRIV, FRO, FSLR, FTR, GERNHL  MOTR, RIMM, STP, SYNT  


     Watch out for Heavy Scheduled Reported Insider Selling and Use TigerSoft's Closing Power To Know When To Sell.

   Insider Trading - "part of the fabric" and culture of Wall Street...It has become institutionalized."
   
  (NY Times 5/19/2012).


    Be A Whistle Blower on Inside Trading and Get Paid for It.

                                                     Buy with The Insiders

          Tiger Software's Power Ranker searches for stocks to buy whose price up-trends
          are confirmed by heavy (blue) Accumulation and rising Closing Power.  For purposes of
          selling stocks short. we look for stocks whose price breakdowns and downtrends are
          confirmed by very negative (red) Distribution and falling Closing Power. 

          We usually demand that Professionals agree with what the Insiders are doing.  So, we
          trade the price waves up using the TigerSoft Closing Power's turns upward from support
          and the price waves down by watching for signs that the Tiger Closing Power and the
          Accumulation Index are turning down again.
    

         
---> TigerSoft spots Insider Buying as spikes in our TigerSoft Accumulation Index above
          a key threshold which we have extensively back-tested.  See the many examples below.
          The best way to trade such spikes is with Tiger's Closing Power.  Buy when the
          Closing Power turns back up after such a bullish spike of Accumulation.   See this in
          the chart below.  

AMAG.BMP (1173654 bytes)

AFAM.BMP (1219254 bytes)

                                          

                                             Selling Short with The Insiders

          ---> TigerSoft spots Insider Selling as deeply negative (red) readings from our
          TigerSoft Accumulation Index.   Greater price weakness than the Dow Jones is
          normally required to take action. too.  When we see heavy red Distribution, we
          short each new wave down.  We watch for Tiger Accumulation Index falling back
          below its own moving average and for the Tiger Closing Power violating its own
          minor uptrend or support.  

PHM.BMP (1185654 bytes)
 

               
          Watch The Wall Street Professionals using Tiger's Closing Power.

          Market makers, hedge fund operators and institutional professionals watch for
          new developments that will impact the companies they trade.  They stay abreast
          of significant scheduled insider trading as reported by the SEC.  They read the industry
          journals and reports by Wall Street security analysts.  Their Washington representatives
          tell them when prospective government regulation changes or pending new legislation
          will have an impact.  We should add that many of these Pros are not above
          manipulating stocks by planting news on Yahoo or CNBC to take advantage of
          public fears and public greed.  So, we watch our Tiger Closing Power to see if they
          change their minds about a stock, regardless of what they may publicly say.  
          

          To see what they're really doing, not what they say, we watch Tiger's Pro-Closing Power.
          When it is rising, they are net buyers.  When it is falling they are net sellers.  When
          it changes direction, the Professionals are reversing their position, from long to
          short or short to long, and we should think about doing the same, especially if
          we see signs of insider buying or selling from the readings of our Tiger Accumulation
          Index.
         
          Main Street is far away and those living there are often the last to find out what is
          really going on with a rising stock.  Seeing unusual patterns of insider buying, Professionals
          make inquiries about the stock.   They exploit the network of informally exchanged
          information that is Wall Street.   Usually, they discover the basis of the insider buying.
          even when the Insiders have not directly involved them, as they often do in the
          case of mergers, takeovers, splits and public offerings.  These Professionals then
          take positions in the same stock, cover their short sales and trade predominately in the
          direction that the Insider expect the stock to move, using every advantage of leverage
          the Federal Reserve gives them.
 

SILC.BMP (1024854 bytes)
         
                            HOW TIGER IMPROVES GREATLY UPON THE AXIOM,
                     "BUYING ON THE RUMOR AND SELLING ON THE NEWS"    
 

                 Just about every study of stocks and even cursory reviews show that "Insider Buying" 
         quite commonly appears in a stock in the months, days or weeks before it makes a big price
         advance on a bullish public announcement (i.e. stock split, good earnings, new discovery,
         takeover, public subsidy, etc.).   Insiders and Professionals got a quick double out of SILC
         shown above.

                 Not surprisingly, the stock sold off with heavy (red) distribution and falling (net negative)
          Professional Selling at 20 when the news came out.  This is exactly why cynics say
          "Buy on the rumor and sell on the news".  Actually, this axiom has a long history,
          because insiders and professionals have been playing this one-sided game a long time.
          For example, on December 13, 1956, the NY Times wrote "In the Bethlehem-Youngstown
          situation, Wall Street held to its old apothegm, “
Buy on the rumor, sell on the news.” This
          expresses the often observed fact that stocks involved in merger negotiations do considerably
          better than the market as a whole between the time the merger is first rumored and the time
          the companies announce it, and considerably worse between the announcement and the
          consummation."  

                 Some go so far as to say: "
always" buy before there is any public announcement of
          a company’s earnings.    By the time the news is published, it is too late to buy, they say.
          Too many savvy traders will have already anticipated the news by hearing about it from
          insiders, from fellow-stock brokers or their associates,  by in-depth research or, perhaps,
          by observing the stocks unusual price behavior and buying.  Moreover, insider trading is
          now so widespread, they insist, that it's best to always automatically sell on good news
          when the stock is probably up.

                Such advise is problematic.  The first problem with such approach is that there are
          always about a million semi-plausible rumors floating around.  How does one decide
          when a rumor should be acted upon or which is the rumor that might turn out to be true? 
          Should we always Sell on the news?  

                We think always selling on the news is a mistake.  Some of the news is truly
          not widely anticipated.  Often still better news is going to come out.  Without TigerSoft's
          Professional Closing Power to show whether Professionals are actually jumping ship
          and are c;learly net sellers. the Selling part of the axiom is probably a pretty good idea. 


           See: http://www.barrypopik.com/index.php/new_york_city/entry/buy_on_the_rumor_sell_on_the_news_wall_street_proverb/

              
But we at TigerSoft would rather just let the Professionals, using the trend of the blue
           Tiger Closing Power, tell us whether we should sell, hold or perhaps buy more.
           Sometimes, Professionals do sell.  But sometimes they are still heavily buying.  So, we
           always watch the trend of our Tiger Closing Power.  In addition, we have formulated some

           trading strategies that use the amount of insider buying to tell us how long to expect
           optimally hold.

                                        Example:   We were initially told JP Morgan's trading loss in May 2012
                                        was more than a $2 Billion by its CEO.  The stock kept falling.  Then it
                                        was disclosed that the loss would be more than $3 billion. The the Wall Street
                                        Journal reported it could reach $5 Billion.  Most recently, we are told
                                        the loss will be as much as $7 billion.  Who knows?  To trade it, all we
                                        had to is watch the falling Blue Closing Power and stay short until the
                                        Closing Power downtrend broke its downtrendline. The Professionals,
                                       as represented by the Tiger Closing Power, will tell us when the
                                       stock has bottomed and the news, in fact, is not getting worse.


JPM.BMP (1173654 bytes)


                   THE MORE ACCUMULATION, THE MORE BULLISH THE STOCK,
                       PROVIDED PROFESSIONALS KEEP ON BUYING, TOO.


                 When there are more spikes of "Insider Buying", as we measure it, and they
           last longer, the stock typically becomes that much more tightly held and the anticipated
           good news that much more bullish.  Such situations also produce more automatic
           Buy signals.  ALLT shows much more insider buying than SILC and, so, we would
           expect it to outrun to upside the first or even the second good earnings' reports
           as the stock moves up.
   The announcements about ALLT show:  improved earnings
           were  reported on November 9, 2010, but even better earnings were reported on February 8, 2011.
           Selling in November would have meant missing the best part of the rally to date.

               ALLT is also an Israeli firm.  If we tried to rely upon reported Insider trading transactions,
           we would not have bought this stock.  Clearly using TigerSoft, made it easy to see all the
           heavy Accumulation in ALLT's case.  With such stocks, we expect bigger moves
           and it has paid off. 

ALLT.BMP (1075254 bytes)

                 
                    Sometimes, the Insider Buying continues for month after month, always
            with it confirmed by a rising trend in the Tiger Closing Power.    QPSA was
            bought by us initially at $1.60 in December 2009.  See how the Accumulation
            stayed very high for most of that year and the following year, too.  As long
            as Professionals were net buyers and the Tiger Closing Power kept rising,
            we held or bought more.   Eventually, in January 2011, QPSA peaked at 15,
            after moving from the pink sheets to the American Stock Exchange and getting
            lots of bullish publicity for being the Spanish language equivalent to Facebook.

QPSA09.BMP (1068054 bytes)


QPSAn.BMP (1041654 bytes)


                                                          INSIDER SELLING
                CONFIRMED BY PROFESSIONAL SELLING
                  MAKE AN EXCELLENT SHORT SALES


                  It should go without saying, but all our studies and most others, too, show that 
           "Insider Selling"   occurs quite commonly in stocks that will soon fall precipitously
           on a bearish public announcement  (i.e. sharply lower earnings or lowered estimate
           of future earnings, law suit, governmental investigation or bankruptcy).
       
                  In most cases, there is also a pattern of official or reported insider selling. What
            counts most is that Insiders and Professionals are both very bearish.   See below
            in the case of Seahawk Drilling (HAWK) how the Tiger Accumulation Index stayed
            s negative (red) and frequently falls below -.25, our provisional threshold for signifying
            important unofficial and official insider selling when Tiger's Closing Power confirms
            the trend.  We want Wall Street Professionals to confirm the insider selling.  The price
            decline was remarkable, because this was a period of rising stock and oil prices.
            See how the blue Tiger Closing Power kept falling and falling, all the while the general
            Public were fooled by the apparent "cheapness" of the stock and steadily buy all the way
            down, judging from Tiger's Public Opening Power.  

                  The behavior of the Tiger Internal Strength Indicators is quite typical when very
            bad news is about to befall a stock.  Insiders do not tell the public the bad news,
            before they themselves sell.  Though this is a violation of their fiduciary responsibilities
            to their shareholders in a publicly traded company and even though they pay
            themselves enormous salaries and bonuses, they seem too greedy to give their
            shareholders a fair shake.   They and their friends always seem to help themselves first.
            They sell before they let the bad news out.  We can always count on their greed
            and the lack of SEC enforcement to tell us what to sell short.   Compare SEAHAWK's case
            below with the insider selling by Peter Sperling, CEO of Apollo.  Or the bankers' insider
            selling at CitiGroup or Washington Mutual long before their stocks plunged into the abyss
            because of the recklessness of their use of leverage in the mortgage debacle of 2008-2009.                     
 
                                             SEAHAWK's PLUNGE INTO BANKRUPTCY
               WAS ANTICIPATED BY ITS INSIDERS AND WATCHFUL PROFESSIONALS

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wpe1B1.jpg (23750 bytes)        
                 

                      We think these concepts and our practical measures for identifying
               Insider and Professional trading are the most important keys to your making |
               big money in stocks that you will find... Certainly, I have found nothing like 
               this since1967, when the author first began reading about the stock market
               in the library of Columbia University's Business School..


                     Read more.  Visit as long as you like at our Main Web-Site  www.tigersoft.com
               our TigerSoft Blog  and Daily Comments on News with TIger's Insider Trading Charts

               and TigerSoft's Keys To Tracking ALL Insider Buying and Selling

               Then get TigerSoft or subscribe to our Nightly On-Line Hotline.  You'll wish you had
                gotten Tiger years ago

==================================================================================

                     MORE EXAMPLES OF INSIDER SELLING

                               Don't Get Mad, Get Even!
     

               
There are so many examples of what should be illegal insider selling.  But
                          crystal clear are the cases of  WAMU's Killington and Rubin's CitiGroup. 
                           See also the Blog I wrote in late 2007, long before these stocks collapsed.

                                
December 30, 2007
   Insider Selling at Washington Mutual and CitiGroup
                                 Should Make Shareholders "Mad as Hell"
.
 

                                         It predicted WAMU's bankruptcy and exposed Killington's
                            insider selling, based on how extensive the insider selling was.
                            The TigerSoft chart below shows you exactly what to look for.
                              
                                                               
     TigerSoft Rules Are Simple: 
                             
                                  >>>Intensive Negative (Red) Distribution in Tiger's Invention,
                                         the Tiger Accumulation Index, Means Insider Selling

                                  >>>The steady red AI  readings show heavy Institutional Selling.

wpe1A2.jpg (93373 bytes)

                   
                                  >>>Sell these stocks short on rallies that fail.  Our automatic signals
                                 show you when.

                      Rubin sold millions of  Citigroup stock at it top near 55.  As it fell, down,
                      down, down, it might have looked cheap.  But it hit ONE DOLLAR.
                      It was never cheap enough!.  Don't rely on emotional hunches to buy!

                      Watch the insiders.  What what they do with their own money, not what they
                      say to the media..
               
     wpe1A3.jpg (67376 bytes)                                      
            LEH on the road to bankruptcy!                                  
wpe1A4.jpg (44448 bytes)      
             
  wpe1A5.jpg (2631 bytes) 
For more examples of insider selling, continue reading and see -
                                    > Let TigerSoft Find Killer Short Sales.
                                    >
2010's Worst Performing Stocks
                                   >
December 26, 2007
  
                                            Insider Selling: British Style. Is Northern Rock The Tip of The UK Ice Berg?

             
    MORE EXAMPLES OF INSIDER BUYING

                    
Again, Apply The Simple TigerSoft Rules: 
                             
                                  >>>Intensive Positive (Blue) Accumulation in Tiger's Invention,
                                         the Tiger Accumulation Index, Means Insider Buying

                                  >>>The steady blue AI  readings show heavy Institutional Buying

                       
Buying with the insiders from March to July 2009 proved ideal,
                             just as we predicted it would at the time.  Please look at some of the stocks
                            our software found for customers to buy back then.  They were exactly
                            what we have been looking for since 1990s when we formulated the rules
                            for the major Buys you see on this chart.  Please go to the link below.

                           
June 6, 2009
           The Great 2009 Bull Market.
                             Why Is Wall Street Concealing The Huge Surges in Low Priced Stocks?



                                                                                                     DDRX was finally bought out at 35.
wpe15F.jpg (76476 bytes)

  
wpe1A5.jpg (2631 bytes)       For more examples of insider buying continue reading and see -
                                        > Let TigerSoft Find The Next Explosive Super Stocks.
                        
               > 2010's Best Performing Stocks


                                           


                      HOW TIGERSOFT TRACKs ALL INSIDERS
       
                TigerSoft's Keys To Tracking ALL Insider Buying and Selling
                                  

                     Besides official insiders, Tigersoft  profitably also tracks the insider-informed
                     stock trading by the associates of Corporate Insiders and ALL Key
                     UNREPORTED Insider-Informed Buying and Selling by Wall Street Professionals.
                     Advance information about buy outs. secondaries, splits, earnings, bond
                     issues always either leaks out in advance to someone in the company and
                     their friends and business associates.  It is often deliberately leaked to the chose
                     few on Wall Street in order to get favorable treatment in brokerage recommendations 
                     and analysis.  The SEC cannot change this.  So, use TigerSoft.  Level the
                     playing field.


                           >Our tools uniquely contrast Professional and Public Buying and Selling.
                           >Tiger screens All Stocks for key levels of insider and professional
                             Buying and Selling.


             
                    How TigerSoft Flags
             Savvy Insider Buying


                  
We at TigerSoft are privy to no insider tips or secrets.  But over the
                                 years, we have learned how to spot savvy insider trading that is
                                 about to send the stock up and up and up!  This pattern of buying
                                 repeats over and over again, year after year, in all markets, because
                                 someone on the inside knows something very good will happen to a
                                 company in the not too distant future.  They know this with a certainty
                                 that is reflected in their manner of buying. 

                                               The Four Key Stages To Watch for

                                 First, they quietly accumulate all the shares they can.  A weak general
                                 market environment makes this a relatively easy pursuit.  See the
                                 tell-tale
bulges in the TigerSoft Accumulation Index in the chart below.

                                 When no more shares are available this way, they become more
                                 aggressive, because they know there is a very high probability that
                                 the stock will be much higher in six months or a year.   We spot this
                                 stage technically, using our Accumulation Index, price patterns, volume
                                 and the
automatic Buy signals which we have back-tested for the
                                 this purpose over more than 30 years of time with thousands of stocks'
                                 charts.  

                                 Thirdly, because the stock is tightly held and the insiders have been
                                 quite shrewd,
prices rise very sharply on high (red) volume, as more
                                 and more professionals and a handful of public speculators jump aboard.

                                 Fourthly, watch to see if the Professionals agree with what Insiders
                                 are doing.  We want to buy stocks showing high levels of insider buying
                                 and an
up-slanting blue Tiger Professional Closing Power.   Our Hotline
                                 post these "
Bullish MAXCP" stocks' Tiger charts for your inspection
                                 each night, along with the opposite appearing stocks, those with heavy
                                 red Distribution and a down-sloping Professional Closing Power that
                                 is weaker than the stock's price action. These are the "
Bearish MINCP stocks".

                                 If you look closely, you  can see all this in the DDRX chart below. 
                                 In particular, see how our TigerSoft Accumulation Index spots the
                                 earlier periods of insider accumulation by rising above the +.5 threshold.
                                 The indicator varies from -1.0 to +1.0.  It is quite bullish that there were
                                 three periods when it rose above +.50.  A lot of stock was accumulated.
                                 The many automatic Buys are our alerts to buy the stock.  The rising
                                 prices show us we were quite right; this was very savvy insider buying.


                                 Who were the insiders here?  Sometimes, you can tell by looking at
                                 the official inside trading records that corporate insiders must report
                                 to the SEC.  More often, there is no easy way to know.  But make
                                 no mistake about it, someone on the inside knew.  That's why the
                                 trading patterns matched so exactly the model we have constructed
                                 to spot savvy insider buying. .
wpe1A6.jpg (73258 bytes)wpe161.jpg (19298 bytes)                  
 

                  Wall Street's 'Dirty Little Secret'


                                        INSIDER TRADING IS RAMPANT!

                                
I have been writing for four years about how the SEC
                                is worse than useless and toothless, because it still gives
                                the least informed members of the public the dangerous illusion
                                that there is a governmental agency effectively policing and
                                preventing investment fraud and insider trading.   There is
                                so much proof of how rampant is insider trading that one hardly
                                knows where to begin to discuss it. And, with each new day
                                more examples emerge, along with governmental officials
                                decrying the state of affairs.

                                The US law itself seems clear.  While corporate insiders,
                                key employees, directors and officials may buy or sell their
                                company's shares, they must not do so based on material
                                non-public information about their company and when they
                                do make a trade, they must report it to the SEC, which then
                                allows the public to see what they are up to.  If insiders do
                                make trades based on non-public information, the trades
                                are considered fraudulent and the insiders are judged to
                                have violated their fiduciary responsibilities.  In addition,
                                trades made by insiders tips to friends and associates are
                                illegal.   Again, the insider's duty to public shareholders is
                               considered to have been violated by such tips.  Stock brokers,
                               analysts and journalists who in the course of their duties, discover
                               and then trade upon non-public information that materially affects
                               a company's stock also break the law, if they "had reason the
                               believe that the tipper had breached a fiduciary duty in disclosing
                               information"

                               Federal Court decisions have further clarified what the law
                               considers insider trading. The SEC v. Texas Gulf Sulfur (1966)
                               is the most important case in setting the law.  TGS found an unusually
                               rich deposit of ores near Timmins, Ontario.  Initially, the company
                               issued discouraging press releases about the discovery, all the
                               while several directors for the company loaded up on call options
                               and stock.  The press releases were meant to dupe the Canadian
                               farmers into selling or leasing their land at a fraction of its probable
                               values.

                               The 1934 Securities and Exchange Act gives the SEC the authority
                               to demand that violators give up their trading profits.  They may
                               also ask a court to impose a penalty of up to 3 times the profit
                               realized by their insider trading.  The sane law gives the US Justice
                               Department the authority to bring criminal prosecutions against
                               inside traders.  In 2002, an inside trader could be given a 20-year
                               jail sentence and be fined up to $5 million.   In practice, criminal
                               penalties are rarely sought, except in a few high profile cases.  As
                               a consequence, such penalties act as very little deterrent.
                              
                               Unfortunately for investors, the SEC acquired a reputation between
                               2000 and 2008 of being all but toothless.  Too often they decided, while
                               the trading may have looked suspicious, it would been too hard
                               or too politically inconvenient to prove that the insider trading was
                               done because of illegal use of non-public information.  The weaker
                               the SEC's enforcement looked, the bigger the problem became.

                               In August 2006, the NY Times ran a lead story on page 1 that Wall
                               Street insider trading had "gone wild".  "
41% of all mergers worth
                               $1 billion or more over the last 12 months show signs of insider trading
                               ahead of the deals.


                               On October 26, 2007, the NY Post quoted a senior SEC official as
                               saying that insider trading was "
rampant" among Wall Street professionals.
                               "
I am disappointed in the number of cases we are seeing by people who
                               make an abundant livelihood in the market..
."
                     
                               In another example, a 5/18/2008 GA0 (Government Accounting) report on the
                               SEC wrote:
                                   
"In one case, an enforcement attorney told the GAO that a
                               company offered to pay $1 million to settle a case, but the attorney
                               recommended no penalty because "they did not believe the commission
                               would approve the company offer.
"
                              See - http://www.star-telegram.com/business/v-print/story/1380769.html   

                             
John Mack, the CEO of investment bank, Morgan Stanley is apparently above
                              the law.  Gary Aguirre, a former SEC investigator, told a Congressional committee
                              that he was fired when he tried to interview Mack about tipping off the
                              hedge fund Pequot Capital Management about a 2001 merger deal between
                              GE Capital and Heller Financial.   Pequot netted $18 million in profits
                               from the tips.  A Congrsssional Investigation was launched.  It ended up
                              siding with Aguierre against his bosses at the SEC


                             
In July 2009, the Seattle Times noted that the SEC typically goes after the small fries
                              for insider trading, while well placed insiders and institutions often get off without
                              even a warning. Insider trading, the articles concludes is rampant.  Even former
                              SEC Chairman Cox admitted this: "
There is ample empirical evidence that there is
                              significant trading in securities markets on the basis of secret advance knowledge
".
                             
                                
  
         Flagrantly Illegal insider Trading is rampant and commonplace.  This is the
               inescapable conclusion we reach looking at all the evidence. 
The SEC exists mostly
               to give the appearance of fairness for all investors on Wall Street.  Insiders sell out on
               when false, exaggerated and distorted "good news" comes out that they know will soon
               turn bad.  Earnings and earnings' estimates cannot be safely trusted.   After-the-fact
               discoveries of   "Cooked Books" and CEO Lies and cover-ups are very common.

                    
Since 2001, the SEC has prosecuted about 50 cases of insider trading per year.
                That is not nearly enough to stem the tide.
  Insiders who use a modicum of discretion
                have no fear, especially if their gains are not out of the ordinary. The SEC picks a minute
                number of high profile individuals to prosecute for insider trading.  This is for show!
                99.9% of the other cases where big gains are made flagrantly using insider trading
                are ignored.  The prosecution of a very few well known people is done for public
                consumption, to make it seem that the SEC is protecting the public.  This was mainly true
                in the Clinton Administration, too. 

                     Certainly, the SEC rarely goes after the biggest investment banks, where so much
                of the insider trading takes place.  Look at the steadily red negative readings from
                the TigerSoft Accumulation Index,  for example, in Citigroup.  These were insiders
                and their friends selling out.  Even using the official records,
insiders sold 1 million shares
                in 2007 at or near the top!

                        
See Tiger Blog 11/25/2008  
                         RECKLESS CITIGROUP INSIDERS SOLD 1,000,000 SHARES IN 2007.
                      
  Now taxpayers are bailing out the company with more than $45 billion.

                      Why does the SEC not go after insiders like these? 
                 Why not Kellinger (Washington Mutual) or Rubin or Prince (Citigroup)? 

                     Just below is the WM chart I put on our Blog for 12/28/2007, nine months before I
                 warned it might go bankrupt, based on how extensive the insider selling was.

                 The TigerSoft chart shows you exactly what to look for.

       wpeF7.jpg (93569 bytes)

                     
See alsoSEC charges Mark Cuban with insider trading... He is the best known figure to be accused
                                          by the SEC  since its 2002 case against Martha Stewart. - Sacramento News ...
                                       -
The Undercurrent | insider trading (April 6, 2008)
                                       -
A Financial History of Modern U.S. Corporate Scandals: Since Enron
                                       - Insiders circumvent insider trading regulations...

                      Insider selling is rampant and goes unpoliced. 
The evidence is in the TigerSoft
               charts.
"Someone always knows", we say.  Use the TigerSoft charts to see if
               insiders are buying or selling and you will do very well in the stock market.

                       The Scandals of ImClone, Enron, Arthur Andersen, Health South, Homestore.com,
              K-Mart,  Martha Stewart,  Merrill Lynch, Qwest, Jack Grubman of Smith Barney, Tyco,
              US Technologies and WorldComm are the tips of the ice berg.  They have just whetted the
              appetites of a new generation of Corporate CEOs
, Presidents and Board Members.
              Some history, lest we forget.

            IMPORTANT:   "Fortunately, savvy TigerSoft  users can readily spot  what Big Money
                and Insiders are doing with their own money.  It is only when we buy when they
                buy and sell when they sell, altogether disregarding what CEOs say, that we can make
                some real money
."  William Schmidt, TigerSoft

                
Check back here for More Studies.  See NY Times List of Insider Trading News.
                  Another possible source of data on insider trading is
http://www.biginsiders.com/index.php

                  
wpe31.jpg (2988 bytes)   InsiderTrading Studies by TigerSoft

                   
"Insiders always know in advance."


                      Never forget that phrase. Let TigerSoft show you how to reap the rewards that come from closely
               following the tell-tale signs of insider buying, insider accumulation, insider selling and insider distribution. 
               See below for more details. 


          $75 - TigerSoft Books by William Schmidt, Ph.D. (Columbia Univ.)
            
"How To Spot Insider Selling and Make Killer Short Sales in Any Market
                      ===> Order Book

                           
"
Explosive Super Stocks: How To Spot Them at The Start of Their Move:
                     The Conditions That  Launch Each Year's Biggest Gainers and Then How Not
                     To OverstayOne's
Welcome."   -->    Order book.

                     "
Tiger's Tahiti System:   24.4%/Year: 1970-2007: Buying The Most Accumulated
                       DJI-30 Stock.-> Order here.

              TIGERSOFT STUDIES OF INSIDER TRADING 

>>>   11/25/2008      Easily Spot Key Insider Selling Using TigerSoft.  Compare The Insider Selling
                                   Shown on The TigerSoft Charts of Citibank with Those of Bear Stearns,
                                   Lehman Brothers, Washington Mutual, Freddie Mac, Fannie Mae, Trump,
                                   Northern Rock and General Motors.

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>>> November 21, 2008       Four Phases of A Typical Speculative Stock:
                                              Take Off, Topping Out, Collapse, Base Re-Building.
                                               Examples of DRYS and TASR.

>>> June 4, 2008      Far from Over, The Credit Crunch Is Worsening:
                                   Charts Showing heavy distribution: NEXC, ABK, MBI, LEH, FCFC, CORS, CCBO
                                   CNB,   WM, IBCP, GSBC,
wpeF7.jpg (44568 bytes)

>>>   5/20/2008   Oil Stocks: TigerSoft Charts show how Insider Buying put us on high alert
                           in the year's biggest gainers. 
                             The cases of MXC, PDO, ROYL, GENC and MPET
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>>>   4/13/2008    Significant Insider Buying - as Tiger defines it - is present in best performing stocks
                              of the last year. This is true in every study we do.   is Dey

>>>   3/16/2008  Insider Selling at Bear Stearns

>>>   2/26/2008  Big Money Accumulation in Food Commodities.

>>>   1/24/2008   JPM Morgan and Rural Cellular
                                        We detect insider buying by the Accumulation Index surpassing .50.
                             Notice the bulges in November and April below...
                             More examples - http://www.tigersoft.com/Tiger-Blogs/12-31-2007/index.htm
          wpe4B.jpg (102449 bytes)
>>>   Schering Pl;ough Accused of withholding data showing its anti-cholesterol drug, Vytorin, is no more
          effective than Merck's older, cheaper Zocor.  Schering-Plough's President
is accused of selling 900,000
          shares seven months before these results were made public.
CBS News Story. 9/16/2008.

>>>   Insider Trading at The Fed.  Only occasionally are charges brought against Fed officials, as in 1988.  
          Did you see how the market turned up the day before Bernacke said he would lower rates.
          His cronies on Wall Street got the word a day ahead of the rest of us.  This is exactly what happened
          back last August.  This is clearly "insider trading".  But the SEC is not going to investigate
          the FED!  The little guy just has to take it!  What's worse, the little guy on a fixed income
          just must accept the +10% fall in the Dollar for the last 12 months and all the inflation that
          necessarily brings as Bernacke lowers rates to bail out mortgage lenders and banks.  Bernacke is
          the pawn of Wall Street.  He clearly seeks their approval with every utterance.  The little guy plays no
          role in his political calculus.  I predicted Bernacke would do all he could to avert a stock market decline
          until after a Democrat was in the White House in 2009.  That is Bernacke's prime directive.  The problem
          is that the dollar's decline is accelerating now.  At some point soon, investors in US stocks will
          decide to jump ship. rather than hold US denominated assets.  That will cause an even bigger massacre
          of stock prices.
                     William - tigersoft.com 1/12/2008  See my Blog of 10/31/2007
                             http://www.tigersoft.com/Tiger-Blogs/10-31-2007/index.html
         Take a look at Paul Erdman’s 1997 "fictional" novel, The Set-Up.   where an ex-Fed Chairman is accused
          of insider trading.
         , wpe2D.jpg (9142 bytes)

>>>   Insider Activity for week ending January 4, 2008 - by Wall Street Journal

>>>   Must be nice to be so lucky! New Imclone CEO, Johnson, bought $500,000 worth of ImClone stock 4 days before
          it announced its lead drug, Erbitux, has been shown to prolong the lives of lung cancer patient/  Stock
          jumped 18% on news.
  "Tell us another bed-time story."   "How dumb do they think we are?"
          "They're also offering the Broklyn bridge."  "Incredulous = "
incredible, unbelievable - beyond belief or
           understanding; "at incredible speed"; "the book's plot is simply incredible"

>>>    Insider Selling Crunches Confidence in Shoe Stocks: Crocs (CROX) and Brown Shoes (BVS)  1/9/2008  

>>>   Erik Sirri, The SEC's Top Insider Trading Regulator Dismisses The Desirability
of Regulating Insider Trading
.
  1/8/2008  

>>>  Insider Seling at Bear Stearns (BSC) and How TigerSoft Spots and Trades It. 1/4/2008

>>>   Insider Selling by Dow Jones Insider Only Brings SEC Insider Trading Charges against
The "Little Guys"
1/3/2007

>>>   Insider Selling at Washington Mutual and CitiGroup Should Make Shareholders "Mad as Hell"  12/30/2007

>>>   Law Suit "MATTEL ( MAT ) HIDES TOY RECALLS UNTIL INSIDERS CAN SELL."
              
Santa's Toy Makers May Go To Jail?  12/27/2007

>>> Insider Selling at Quest in 2001-2003.  12/27/2007
     
  CEO Lies, Bullying, Greed and Insider Trading... "To Hell with the Widows and Orphans" Is CEO's attitude."
 
>>>   Insider Trading in the News  MSN - A New Wave of Insider Trading and ONXX 12/26/2007

>>> Insider Selling: British Style. Is Northern Rock The Tip of The UK Ice Berg?
                               http://tigersoft.com/Tiger-Blogs/index.htm  
12/26/2007

>>>
Insider Selling and Heavy Institutional Buying: The Case of KTEC
                         http://tigersoft.com/Tiger-Blogs/12-22-2007/index.html    
12/22/2007

>>>
Insider Selling in Chinese Stocks Rivals US in 1929.
                                        http://tigersoft.com/Tiger-Blogs/11-27-2007/index.html
11/27/2007

>>>  
How To Spot and Easily Survive Dangerous False Breakouts.
                                        
http://tigersoft.com/Tiger-Blogs/11-15-2007/index.html    11/15/2007

>>>
Reliably Profitable TigerSoft Short Selling Tools and Techniques
                               http://tigersoft.com/Tiger-Blogs/11-9-2007/index.html   
11/9/2007

>>>
 
Lots of Stocks Look Like Good Short Sales
                               http://tigersoft.com/Tiger-Blogs/11-6-2007/index.htm     11/6/2007

>>>
Rules for Trading Food Commodities with TigerSoft's
      Accumulation Index To Spot Big Money Buying/Selling.

                                        http://tigersoft.com/Tiger-Blogs/10-7-2007/index.htm   
10/7/2007

>>> 
Insider Selling and Data Falsification at ImClone in 2001
                                      http://tigersoft.com/Tiger-Blogs/9-17-2007/index.html    
9/27/2007

>>> 
Biotech Series: Insiders Rule:    The Amgen Take-Off: 1990-1991
                                     http://tigersoft.com/Tiger-Blogs/9-6-2007/index.htm   
9/7/2007

>>> 
2007's Best and Worst Performing Stocks
                              Tiger's Accumulation Index Makes The Difference 
8/29/2007
                                        
http://tigersoft.com/Tiger-Blogs/8-30-2007/index.htm

>>>
Widespread Insider Selling before The Bad News Comes out.  The Hall of Shame!
                                      http://tigersoft.com/Tiger-Blogs/8-3-2007/index.htm    
8/3/2007

>>> 
Housing Correction Continues.    No Bottom In Sight, Yet
                             http://tigersoft.com/Tiger-Blogs/6-28-2007B/index.htm     7/28/2007

>>>
Tiger's Tahiti System Keeps Churning Out 20%/Year Gains Using the DJI-30..
                             http://tigersoft.com/Tiger-Blogs/6-15-2007/index.htm    
6/15/2007

>>> Insider Buying Is Very Evident in San Diego's Top Performing Stocks - 6/11/2007

>>> Tiger's Sunken Treasure Stock, OMR - Odyssey Marine Exploration doubled in one day 5/18/2007

>>>
Flagrant Insider Trading at Novastar.  Criminal Investigation 3/9/2007 See chart and story below

>>> Biggest Gainers since July 2006 Bottom: The Tell-Tale Signs of Insider Buying,  2/26/2007

>>> 
Insider Selling at NEM - Newmont Mining... 10/2/2006

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      Tiger Blogs about Insider Buying       Explosive Super Stocks
                                        
                          
     
Contrast the TigerSoft Charts of the biggest winners in 2011-2012, ACAT, AKRX, ASPS, LQDT, MNST, MNTG,
      PCYC, SCSS with the biggest losers, ALSK, DRIV, FRO, FSLR, FTR, GERNHL  MOTR, RIMM, STP, SYNT  
                                                                               

February 7, 2011         QPSA - Insider and Professional Buying Bring Us A 10-Bagger.
                                  Now after the stock has risen 10x, Professionals are selling to the Public.
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September 30, 2010   Biotechs Showing Heavy Insider and Professional Buying
                                     
September 14, 2010   MERGERS and OPPORTUNITIES for Traders Using Tiger's Insider Trading Charts.
                                     
RDWR, ARST, NZ, AKAM, MFE, NOVL, AIPC, DDRX and many more buy-outs were
                                      spotted by Tiger users before the public announcement. Learn how.

July 24, 2010               2010's Best Performing Stocks and The Technical Factors That Predicted
                                     Their Rallies

September 6, 2007
    AMGEN's Take Off Phase: 1990-1991

Tiger Blogs about Insider Selling
        Killer Short Sales in Any Market
February 14, 2011
       SEAHAWK DRILLING'S DIVE WAS EASILY PREDICTED BY TIGERSOFT BY WATCING
                                  FOR INSIDER SELLING, PROFESSIONAL SELLING and PUBLIC BUYING.

August 14, 2010           APOLLO SHAREHOLDERS SHOULD BE MAD AS HELL AT
                                  PETER SPERLING's INSIDER SELLING!

July 24, 2010             2010's Worst Performing Stocks  and The Technical Factors That Predicted Their
                                 Declines

January 26, 2010     
Rampant Insider Selling Replaced Insider Buying in Goldman Sachs.

Nov. 25, 2008         Easily Spot Key Insider Selling Using TigerSoft.

January 9, 2008      Insider Selling Crunches Confidence in Shoe Stocks:

January 6, 2008
-   Insider Selling at Bear Stearns (BSC) and How TigerSoft Spots and Trades It.

December 30, 2007 Insider Selling at Washington Mutual and CitiGroup

December 27, 2007 Insider Selling at Quest in 2001-2003:

Nov. 6, 2007           Lots of Stocks Look Like Good Short Sales

September 7, 2007     The Lesson of ImClone: CEOs Should Not Be Trusted

     Flagrant "Insider-Informed Selling" Apparent at Novastar

    
              Insiders and "Insider-Informed" Big Money knew of Criminal Investigation
      into mortgage lender - Novastar Financial - months before the public did.
      Tiger Software Users were apprised of the massive insider dumping as it
      fell below 20.  Short positions were recommended.    The stock has fallen 75%
      in two months.  Perhaps, it was the outside lawyers who told the Big Holders
      of NFI to sell...  Perhaps, it was the executives.     Or their secretaries...
      We may never know.  But the massive Big Money Distribution was very
      apparent on a Tiger Software chart of NFI.  And some of our users are up
      70% in two months here!

             7/5/2007  - False takeover rumor planted. Trust TigerSoft instead.

             11/14/2007 - NovaStar reports $598 million quarterly loss
              Subprime mortgage lender says shares may be de-listed from NYSE

             12/11/2007 - Law Suit on NovaStar's mismanaged retirement account.
  
                                    On-Going Complaints about Nova Star's over-charging its borrowers.

             12/19/2007   - Nova Star CEO, Scott Hartman, finally "retires".  Scott Hartman
       
========================
NOVASTAR    NFI =====================================
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------------------------ LEND ----------------------------------------------------------------------------------
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============ HOUSING STOCK CARNAGE PREDICTED BY TIGERSOFT ==========
           3/13/2007 ----- "Another Leg Down for Housing Stocks"

            The decline in these stocks spells big troubles for housing stocks generally. 

                    Our Tiger Index of  32 housing stocks looks ready to start another leg down.

           Note the false January peak.  It showed a new high with the Tiger Accumulation Index
           negative. 
Traders who bought on the last short-term Buy are being forced to sell.  A new
           low will be bearish for housing stocks and the whole market.  Already a number of housing
          stocks are making new lows.    They are the "leaders downward."

             ------------------------- Tiger Index of 32 Housing Stocks ----------------------------
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------------------------ Beazer Homes - BZH  as of 3/13/2007   32.17 --------------------------------------
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------------------------ Meritage Homes - MTH  as of 3/13/2007   31.77 --------------------------------------
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