By Dr. Paul Price of Market Shadows
Market Shadows’ Virtual Value Portfolio owns shares of deep-discount retailer Big Lots (BIG).
Big Lots' CEO David Campisi bought $100,632 worth of BIG on Sept. 12, 2013 (2800 shares for $35.94 per share).
He wasn’t buying because the shares were depressed. The stock slid to $26.69 last fall during the Fiscal Cliff ordeal. Mr. Campisi bought after the ensuing rally. His timing looks good so far as BIG keeps advancing. It closed today at $37.54.
Insiders who purchase shares must hold them for a minimum of six months and a day in order to profit. That augurs well for Big Lots’ prospects going forward. However, a buy of $100,000 is not huge. Insider buys in the $500,000 range or greater are more powerful bullish signs.
We bought 100 shares on January 2, 2013 at $28.46 per share leaving us with a 31.9% paper profit over the past 8.5 months.
See full details of our benchmark beating virtual portfolio here.
The entire portfolio is now + 28% since our October 26, 2012 inception date.
