Could you comment briefly on how we individual investors should regard “insider trading reports,” where the volume of purchases and sells of a company’s stock by the executive officers and others in that particular company are listed. Thanks for your help.

We think it’s a mistake to put too much weight on insider trading, since insiders can delude themselves about their company just as easily as outsiders. However, it pays to remember that insiders may sell for a variety of personal reasons that have nothing to… Read More

Hi Pat: Would you please share your thoughts on Martha Stewart Living Omnimedia? May I take this opportunity to thank you for all useful advice over the past few years? I particularly like your new TSI Network email update service.

Martha Stewart Living Omnimedia Inc., $5.62, symbol MSO on New York (Shares outstanding: 54.7 million; Market cap: $309.2 million), creates original information and products for homemakers. It specializes in lifestyle topics, such as cooking, gardening, crafts and household maintenance.

Martha Stewart, a well-known caterer, author… Read More

Pat: I am interested in your recommendation of Yum Brands. I am concerned that there has been a lot of insider selling, a high debt load and a poor current ratio. Please advise.

We think that you need to look at insider selling (and buying) on a case-by-case basis. It’s just one of many factors worth considering.

We also think it’s a mistake to put too much weight on insider trading, since insiders can delude themselves about their employer… Read More

Riskier Alcan ready to cash in

In the 1980s and 1990s, Alcan qualified as what you might call a cyclical growth stock. It was cyclical because demand for and prices of aluminum and aluminum parts generally rise and fall with the economy. But it had a growth element because aluminum’s strength… Read More