Unfortunately, many publicly traded companies put the interests of management ahead of shareholders. These firms deliver generous executive pay packages yet never get around to returning capital to their investors. One method of finding shareholder-friendly companies is to select stocks with heavy insider positions. That way management's interests are more likely to be aligned with their investors. When the Board holds stock, they are incentivized to institute dividends and share repurchases.
Infrequently, I find stocks whose heavy insider holdings are not readily evident. These same stocks can be even more exciting when a catalyst is coming to kick-off a big capital disbursement. Then, the stars get aligned and the rest of us - the smaller investors - can jump on...
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