Insider Trading Analysis on Research in Motion (RIM)

Looking at this trading chart of RIM the last 5 days, it looks like an interesting stock but I am going to show you what management thinks.

A great stock indicator for myself is how much insider’s believe in the company.  How this works is that they buy shares in their company because they strongly believe in the long-term prospects of the company.

Lately, senior executives at RIM have not been willing to buy more RIM shares of their own.

[quote]Insiders have not reported buying shares on the open market since July 2010, the longest dry spell in at least six years, according to Bloomberg news.[/quote]

[highlight]Instead, insiders sold at least 11 times in that period.[/highlight]

I personally believe that RIM can belong in the smartphone business market, but it’s glory days are behind it.

[box]It should get out of the consumer tablet market and focus on what once made it great.[/box]

In comparison, at least 55 of the other 59 companies that comprise the S&P/TSX 60 index of Canada’s largest and most liquid stocks have reported insider purchases in the same span, Bloomberg reports.

What do you think? Does Insider Trading make a difference?

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