INSIDERS PORTFOLIO JAN 25, 2010

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INSIDERS PTF: SHORT KILROY REALTY (KRC)

Sold short 160 KRC @ 31.20

INSIDERS PORTFOLIO JAN 20, 2010

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INSIDERS PTF: SHORT SBA COMMUNICATIONS (SBAC)

Sold short 140 SBAC @ $36.20

THE VTU-INSIDERS PORTFOLIO CONSTRUCTION

Corporate insiders have a great advantage over other investors: they know their company better and they know what’s happening in real time. Insider transactions, by themselves, are not a reason to buy or sell a stock, however. They only alert me to do some fundamental work to see if there is an opportunity to make money.
I have set up a personal portfolio to do just that. I monitor insider transactions in the US and Canada. When significant transactions pop up, I check the fundamentals of the company. If the fundamentals justify action, I then check some technical factors to make sure that I am not going too much against the wind.
Each position, long or short, of about $5000 will be held as long as the technical and/or fundamental factors justify it.
For those who are curious of what I do, I will post my transactions after they are completed. Please, note that this is a real personal portfolio and I will post it here your info only as it is not meant to be buy or sell recommendations.Please read the disclaimer.

For the record, here is how it works:

  1. I monitor insider transactions (as often as practical for me).
  2. I check for trends in transactions, either one individual is making numerous same way transactions over a period or time, or many insiders act the same way at the same time.
  3. Interesting buy/sell candidates are then investigated in a fundamental way. If the fundamentals justify it, the stock is placed on my watch list.
  4. Before transacting, I look at some technical factors to make sure that “the trend is not totally unfriendly”.
  5. The position is reversed when either the technicals or the fundamentals reverse.

SHORT TOLL BROTHERS (TOL)

Sold short 260 TOL

LONG AZURE DYNAMICS (AZD.TO)

Bought 22,000 AZD @ C$0.18