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Huge gains in Netsol Technologies

Jan. 21, 2011 3:18 PM ET
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 Sometimes I see multiple outsized long trades made by a few insiders of a company and it gives me the itch to take a small position along with these insiders.  As seen first in early May when three insiders at Netsol Technologies bought about $750k worth of stock which did not make the share price move at first.  Then comes two and a half months later and a positive release of quarterly earnings and the stock starts moving up.  The first insider buy trades were made at around $.85 cents, then in early December two more large trades were made by two of the same insiders of the company, about another $400k.  Now I sit here in the end of January and look at this huge gainer I missed because I did not like the numbers in previous quarters.  It looks to me that the insiders knew what their business was doing and made a nice buck for themselves because the numbers have gotten a little better and it now sits at a share price of about $2.20.  Not bad for less than six months, but my point is that you should not buy a stock just because you see some insider buying going on, but it does give you a good indication that things might be getting better and should definitely warrant further due diligence.

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