3 Small-Cap Stocks With Heavy Insider Buying

By StreetAuthority: By David Sterman In recent weeks, I've been focusing all my efforts on large- and mid-cap stocks, especially those with strong balance sheets and consistent free cash flow. Many of these rock-solid companies offer a degree of stability in this choppy market and are currently trading at outstandingly cheap values. In effect, they allow you to play offense while being defensive.

By StreetAuthority: By David Sterman

StreetAuthority submits: By David Sterman The Russell 2000 Index, which is comprised of companies with small market capitalizations, is always seen as a solid proxy on the domestic economy. Smaller companies, which typically have market values between $300 million and $2 billion, tend to see business turn up at a solid clip when corporate and consumer spending begins to rebound.

In Brief Tiny Titans is a small/micro-cap strategy developed by O'Shaugnessy in his 2006 book, quot;Predicting the Markets of Tomorrowquot;. It looks for cheap small caps with upward price momentum. Background James O'Shaughnessy is an American investor and the founder and CEO of O'Shaughnessy Asset Management, (OSAM), an asset management firm headquartered in Stamford, Connecticut.

By StreetAuthority: By David Sterman It's no secret that small-cap and micro-cap stocks really take it on the chin when investors grow skittish. A 5% or 10% drop in the broader market can lead to even deeper hits for these riskier stocks. The converse is also true: When the market is in rebound mode, these oversold stocks can post some of the most impressive rallies.

StreetAuthority submits: By David Sterman

StreetAuthority submits: by David Sterman

StreetAuthority submits: By David StermanIt's important to keep track of the moves by insiders, as they can point you in the direction of undervalued (or overvalued) stocks. I like to scan the recent buying and selling lists from insiders either daily or weekly, but a monthly look is also helpful, as it lets you see a steady accumulation of shares over a period of time.