About Michael Brush; well known financial columnist

Michael Brush: author of Lessons From the Front Line.

Michael Brush writes a weekly market column for MSN Money. Mr. Brush has also covered business and investing for the New York Times, Money magazine and the Economist Group. Bio continued

Get the Investorideas.com Insider Updates

Sign up to receive updates for the Insiders Corner: http://www.InvestorIdeas.com/Resources/RequestInfo.asp  

NEW! Insiders Corner Blog - http://insiderscorner.blogspot.com/

↑ Grab this Headline Animator

• Another Way to Slip Under the “Halo” of a Powerful Biotech Investing Duo, posted July 3, 2008 (HALO) - As expected, being in stocks “protected” by the halo of ownership by a powerful biotech investing duo known as the Baker brothers has kept investors away from the harsh declines in this terrible market so far this year.
• Three Broadcast Plays Insiders Like for a Rebound, posted July 1, 2008 (SBGI, ETM, WON) - Are the “mainstream media” finally in the last throes of a long and painful demise?
• Let Courteney Cox Brighten Up Your Stock Portfolio, posted July 26 (VRX) - A small drug company called Valeant offers something we don’t see much of in this grim market. Its stock is in a decided uptrend -- and insiders are buying a lot on the strength.
• Insiders Roll the Dice on Regional Casino Company Rebound, posted June 13 (LACO) - Like other consumer-facing stocks, casino shares have been crushed.
• Two Great Retail Plays on a Consumer Rebound, posted June 5, 2008 (DKS, SFLY) - I’m not sure when employment trends will start to firm up and gasoline prices will begin to ease enough to get consumers to open their wallets again.
• Oil Pullback Will Boost Two Refiners Favored By Insiders, posted May 29, 2008 (CLMT, UFEN) - When gasoline nears $4 a gallon, drivers naturally lash out at “big oil.”
• Three Ways to Hedge Those High Prices at the Pump, posted May 22, 2008 (SD, GOK, WES) - It’s not often that we see significant insider buying in a group that’s run as far and as long as energy has.
• Three Ways to Play the U.S. Export Boom, posted May 15, 2008 (CFX, BRKR, ACIW)
• Insiders See Gains Ahead at Three Micro Cap Chip Plays, posted May 8, 2008 (MOSY, CRUS, TUNE) - One of my favorite newsletter writers, George Putnam who pens the Turnaround Letter, recently told his readers to get exposure to the beaten-down chip sector through the iShares S&P GTSI Semiconductor (IGW) exchange traded fund (ETF) - for solid diversification.
• Free Again, U.S Water Works Play Holds Promise, posted May 1, 2008 (AWK) - In the game of Monopoly, Water Works sits precariously between “Go to Jail” and a railroad called B.& O. It’s nestled in among a bunch of middling Atlantic City properties.
• Two Better-Late-Than-Never Plays on China Growth and Natural Gas, posted April 24, 2008 (CSR, MCF) - Spend enough time hunting for investment ideas, and inevitably you will look back in awe at the ones that “got away.”
• Warming Up to Cold Turkey, posted April 17, 2008 (HYTM) - A running gag in Hollywood has press agents putting celebrity clients into rehab to shift the spot light off an embarrassing public gaff – whether or not the faux pas had anything to do with substance abuse.
• Despite Energy Mania, Insiders Buy Two Natural Gavs Plays, posted April 10, 2008 (CHK, ABP) - With energy and many energy related stocks trading at or near all time highs, we haven’t noticed much buying in this sector for a while.
• Some Nutty Growth in a Nutty Economy, posted April 3, 2008 (DMND) - A great benefit of tracking insiders closely is that they regularly lead you to obscure corners of the economy where few sane people would ever consider searching for growth.
• Five Quick Reversal Plays for a Tough Market, posted March 27, 2008 (NT, CECE, OMRI, GFIG, QUIX) - One thing I like to look for with insider patterns is a quick reversal to buying after what I’d call a big wall of selling at much higher prices.
• Let’s Go to Bat With the Hank Aarons of Insiders, posted March 20, 2008 (FXEN, GRB, WBMD) - It’s such a treacherous market out there, when following insiders I’d stick with those who have an excellent record over several years for buying and selling at the right time.
• Six Reasons to Love Crocs (Again), posted March 13, 2008 (CROX) - Crocs are those ugly shoes that everyone loves to hate...or love, depending on your tastes.
• Lick the Market Blues with Stamps.com, posted March 6, 2008 (STMP) - The U.S. post office keeps raising rates. But that hasn’t helped Stamps.com (STMP), an Internet-based service that allows customers to print stamps for a monthly fee.
• Insiders Bucking the Trend Again, posted February 28, 2008 (NTGR, MGM, IVAC, MOSY, EQIX, JNS, VMC, SBH, COLM, ALTH) - Once again this past week insiders were placing bets on beaten-down cyclical names – the kind that aren’t supposed to do well because the economy is meant to weaken further.
• Insiders Aren’t Nuts, They Just Look That Way, posted February 21, 2008 (COLM, SBH, MCRL, ONNN, CPII, CRUS, ALV) - Some of the most remarkable insider buying in the past week was going on in precisely the sectors that should do the worst if we really are headed for economic disaster.
• Come Join the Million Dollar Club, posted February 14, 2008 (MMR, EMR, CPN, SGEN, WB) - In late January I suggested one great way to get a clear signal in these confusing times is to go with the ”super insiders.”
• Insiders Flock to Five “Defensive” Plays as Economy Weakens, posted February 7, 2008 (T, KFT, MON, STJ, NWL) - When a recession looms, many investors move to “defensive” names.
• Time to Start Believing Insiders in the Financial Sector Again, posted January 31, 2008 (ETFC, RJF, C) - Insiders in the financial sector did a lousy job of alerting us to the subprime-induced credit crisis that would take out the market. Instead, they gave us plenty of false signals.
• Who You Gonna Call? Try the Super-Insiders, posted January 24, 2008 - So many market commentators are in such a state of sheer panic and fear, it doesn’t seem like they can offer much sound advice on what to buy if you think we are near a wash-out bottom for stocks.
• Out of Intensive Care, Getting Ready For Solid Foods, posted January 16, 2008 (THC) - The hospital company Tenet Healthcare still bears the scars typical of a one-time hot shot from the bubble days that got taken out by scandal.
• They Sell the Handshakes, You Book the Profits, posted January 10, 2008 (ACIW) - As regular readers know, when a beaten-down, small-cap stock with solid insider buying picks up the endorsement of a value shop with a good record, that can be a winning combo.
• Three Hidden Ways to Play $100 Oil, posted January 3, 2008 (GDP, HERO, PHX) - One of the best ways to play $100 oil right now might also be the least expected – through natural gas stocks.
• Insiders Point to Eight More Small-Cap Stocks That Could See A January Effect Rebound, posted December 31, 2007 - Small-cap stocks can get hammered the worst by year-end tax loss selling because there can be so few buyers for these names – the proverbial “liquidity” problem.
• Three Stocks to Buy Now for January Effect Gains and More, posted December 21, 2007 (ASGN, WTSLA, VC) - It’s that time of year again when holiday joy spreads through your circle of family and friends, we all reflect on a year gone by while making plans for a better one ahead – and doggie stocks get unceremoniously dumped from portfolios around the nation.
• Time to Take Advantage of Discount on Flat-Panel TV Maker, posted December 13, 2007 (BRLC) - Flat-panel TVs are once again the hot ticket item this holiday season. They are flying off the shelves.
• Insiders Say Coal-Powered Spin Off Holds Promise, posted December 6, 2007 (PCX) - Investors often make big money in corporate spin-offs when they buy them right out of the gate. The odds of success improve when insiders purchase in the opening days, as well.
• Three Small-cap Stocks for the Next Leg Up, posted November 30, 2007 (MCHX, CACH, GFF) - Just like during the darkest moments in the stock market last August, insiders are telling us that now would be a bad time to lose faith and sell.
• Get One Up on the “Smart Money” with GateHouse Media, posted November 28, 2007 (GHS) - By now, there are entire websites dedicated to tracking every move of the “smart money” – those geniuses at hedge funds and private equity shops who get paid top dollar to produce better returns.
• Biotech Wizards Load Up on Two Biotech Stocks; Insiders Bullish on the Pullback; Plus One High-Risk Trade, posted November 15, 2007 (INCY, VPHM, IEAM) - The last time we checked in on two secretive hedge fund managers known as the Baker brothers, it was because they were buying boatloads of a biotech company called Genomic Health back in February.
• Insiders Place Big Contrarian Bet on North Carolina Textile Mills, posted November 8, 2007 (UFI) - Insiders have to be the ultimate contrarians. After all, who in their right mind would invest in North Carolina textiles mill right now?
• The QT on QLT: Despite Apparent Problems Insiders Love This Biopharmaceutical Company, posted November 1, 2007 (QLTI) - The tiny Vancouver-based biopharmaceutical company QLT appears to be spinning out of control.
• Insiders Snap Up Shares of Another Global Warming Victim, posted October 26, 2007 (CWTR) - Given the concerns about potential consumer weakness – thanks to higher energy prices, declining home values and a tightening in the credit markets – it’s no surprise to see time and again that retailers get hit hard these days when they fess up to problems.
• Insiders Spy Diamond in the Rough in Ruby Tuesdays, posted October 18, 2007 (RT) - For Ruby Tuesday investors, almost every trading day is like Black Monday.
• Earn Real Profits From Virtual Colonoscopy Technology, posted October 11, 2007 (MGT) - Colon cancer is the second most prevalent cancer. It’s also a highly lethal. Lung cancer is the most common and most lethal form of all cancers, accounting for 17% of all cancer deaths around the globe.
• Try a Little Turnaround Magic at Two Retailers, posted October 4, 2007 (PIR, BGP) - This is supposed to be a bad time to own retail stocks – think sub-prime mortgage disasters, high gasoline prices, and a supposedly slowing economy.
• Insiders Like Two Out of Favor Energy Services Companies, posted September 27, 2007 (BAS, HERO) - With oil prices near all time highs, energy production is booming. But that doesn’t mean trends are great for all energy services companies – the businesses that rent out equipment to the major oil producers and help them work their wells.
• Three Stocks That Will Ride the Rate Cut Wave, posted on September 20, 2007 (BKRS, TRT, MVC) - Though the market has already rallied sharply since the Fed cut rates, it’s still not too late to join the party. History shows that markets can maintain a positive bias for a long time after the initial rate cuts – and in this case there may be more rate cuts to come.
• A Healthier Way to Juice Your Portfolio, posted September 13, 2007 (JMBA) Lots of consumer trends get their start in California. Now, a retail juice bar called Jamba Juice hopes that will be the case with fresh fruit drinks.
• Insiders Still Bullish: Stocking Up On Three Small Retailers, posted September 6, 2007 (EBHI, GMTN, COA) - Insiders are stuck in buy mode. Though they’ve eased off from their hyperactive purchasing during the worst weeks of August – when we, too, were telling you to get long as much as possible – insiders are still notably bullish.
• Insiders Hang Tough: A Dozen Stocks They Like The Most posted August 30, 2007 - (PBY, LTD, LNX, MENT, VQ, VSE, BKD, USNA, ESC, ACF, WB, CHC) For the fourth week in a row, insiders continued to take down large chunks of stock during the past week.
• Insiders Stay Bullish: Buy the Cyclicals, posted on August 23, 2007 (AFG, CIT, SCT, DMLP, DEP, CQP, CCIX, HUN, SNCR, TIXC) - Insider’s continued to sop up stock this past week – even if they backed off a bit from their hand-over-fist buying as the market showed signs of firming.
• Insiders’ Guide to Buying the Pullback Part III, posted August 16, 2007 (TEAM, BORL, ACLS, THS, CALM, BAS, BEXP, PQ, NGPC, MHO, BECN, GCT, RSO, IRC) - Insiders are buying so fast and furious now it is almost impossible to keep up with them.
• Insider Guide to Buying the Pullback, Part II, posted August 9, 2007 (AXP, GGP, EQY, ACAS, RAS, LSE, FSP, AMC, MIG, ENSI, ETE, NS, HERO, HMA, LCAV, SPF) Given the big volatility in a market that seems to change mood by the hour, it’s clear that investors are uncertain, to say the least.
• A Half Dozen Stocks Insiders Say You Should Buy in This Pullback, posted August 2, 2007 (ACA, GNV, MIG, BBI, CHIC, MMR) - Pssst...Insiders are saying it’s safe to go back in the water. While investors panic about how far damage from sub-prime loan problems will spread through the financial sector and the economy, a new optimism among insiders tells me the overall damage won't be too bad.
• Seven Natural Gas Plays to Buy in the Upcoming Turbulence, posted July 26, 2007 (GDP, CHK, CQP, LINE, PHX, TRGL, XEC) - Here we go again. Just like last fall, the weather is not cooperating with investors in natural gas stocks – and the weather is winning.
• Insiders at Upstream Energy Partnership Defy Critics, posted July 24, 2007 (LINE) - Energy sector limited partnerships are up nicely since I suggested buying them three years ago.
• Insiders Point to a Tiny Piece of Terrorism Insurance for Your Portfolio, posted July 19, 2007 (GDTI) - With the recent attempted terror strikes in London and Glasgow – and all the talk of a resurgent Al Qaeda – you may be thinking of adding anti-terrorism companies to your holdings as a grim form of insurance.
• Using Charcoal Filters on the Blood to Improve Cancer Treatment, posted July 12, 2007 (DCTH) - Sometimes in medicine, the cure can be almost as bad as the disease. That’s often the case with chemotherapy, or the use of chemicals and drugs to try to slow down or stop the growth of tumors.
• Mad Scientist Stock Has Potential, says CEO Buy Signal, posted June 28, 2007 (NSOL) A gander at what's going on in labs working for the tiny Washington, D.C. - based Nuclear Solutions brings back memories of high school science fairs.
• One Quality Generic Drug Maker on the Cheap; One Dodged Bullet in Biotech, posted June 21, 2007 (MYL, COLY) - The generic drug company Mylan Laboratories (MYL) offers that rare combination worth holding out for in a stock.
• An Insiders’ Guide to Buying the Recent Pullback, posted June 14, 2007 (OSG, BHS, CLP, KMR, CTO) - Once again, I’m not buying it. A lot of insiders aren’t, either.
• Time to Join Insiders in this Exotic Foreign Energy Play, posted June 8, 2007 (TRGL) - Contrarian investors love stocks that are bruised and battered – stocks that no one else will touch. This style of investing can be quite rewarding.
• Get a Piece of the Private Equity Action in the Energy Sector, posted May 25, 2007 (NGPC) - Now that oil and natural gas are a lot more expensive than they were a few years ago, energy companies are circling back to develop fields abandoned as unprofitable way back when.
• Insiders Give a Big Thumbs Up to Real Estate Plays, posted May 17, 2007, (CHC, GGP, CLP, RSO, AHT, MHGC, CALC, OHB) - As investors, we’re not supposed to like real estate right now. Besides the sub-prime mortgage melt-down scare, residential housing is in the tank.
• Get In On Some Private Equity Action With Compass Diversified Trust, posted May 10, 2007 (CODI) - It’s hard to swing a cat on Wall Street these days with hitting someone who is yammering on about private equity, liquidity and buyouts.
• Stem Cells Research May Hold Promise in Neurological Disorders, posted May 3, 2007 (NRLS) - As important as stem cell research is to the future of medicine, we’ve never noticed much insider buying in the space. So we haven’t had the opportunity to get exposure to the field.
• Insiders Awaken Sleeping Giant in the Uranium Industry, posted April 26, 2007 (URRE) - Uranium Resources, a U.S.-based uranium mining company, looked like a buy back in November at around $6 because of some insider purchasing, but we missed it.
• CEO of Tiny Drug Company Buys Big Position Just Ahead of Move to American Stock Exchange, posted April 18, 2007 (PPXP) - Pipex Pharmaceuticals (PPXP) is a grad school professor’s dream.
• Insiders Say Join the Party With Potential Take Out Candidate, posted April 11, 2007 (BDAY) Celebrate Express has been a real party pooper. Shares of this online store that sells goodies for children’s parties have fallen 35% to $9 since a year ago. Ouch.
• Insiders Place Chips on Two Insurance Companies, posted April 4, 2007 (FSR, AAME) - It was a rocky first quarter. But that didn’t slow down the initial public offering (IPO) machine. All told, there were 67 IPOs in the first quarter worth $11.9 billion, compared with 56 new issues worth $10.7 billion in 2006, according to Dealogic.
• Eleven Stocks to Own for the Next Bull Run, posted March 29, 2007 (OC, BHS, IEAM, JCI, HWK, BIG, CHS, YSI, VLI, CHK, FCX) - A lot of investors still seem nervous about stocks. And that’s a good thing if you are long – which is how you should be positioned right now.
• A New Way to Play the Triple-Play; Plus Four Insider Picks from Subprime’s Walking Wounded, posted March 21, 2007 (BBND, BSC, WFC, FBR, MTH) - Listen up investors -- you now have a new way to play the triple play. It’s called BigBand Networks. And no, it’s not a new cable offering dedicated to the swing-era music of Glenn Miller and Benny Goodman.
• An Insider Guide to Buying the Pullback – Part II, posted March 15, 2007 (TWC, ZQK, TMA, AFR, CNO, DJO, CFW, DF, BFS, IRC, KO, PHX) - There’s so much ongoing insider buying in this market weakness, I can better serve readers by offering up a menu of names once again – instead of drilling down on just a few.
• An Insiders’ Guide to Buying The Pullback, posted March 8, 2007 (HAWK, MMR, WLL, OKS, NCOC, DWA, DF, BFS, IRC, JRT, ZHNE, BITS) - There’s good news and bad news from the insider front. The good news is that insiders have stepped up their buying over the past few days in a big way – a bullish sign.
• Outbid the Insiders with These Five Stocks, posted March 1, 2007 (CTO, KO, FCX, IT, GGP) - The Chinese Year of the Pig just started. And the market had some roast pig on Tuesday to celebrate.
• Two Biotech Wizards Load up on Genomic Health, posted February 22, 2007 (GHDX) - You’ve probably never heard of two hedge fund managers named Julian and Felix Baker -- because they keep a low profile.
• Cancer Drug IPO Sees Strong Insider Interest, posted February 14, 2007 (SNTA) - Initial public offerings (IPOs) that see lots of insider buying as soon as they come out have been doing well, so let’s try another one.
• Five Reasons To Buy American Express Now, posted February 8, 2007 (AXP) - The last time I stepped outside the micro cap focus of Insiders Corner to go with a credit card company that insiders were buying, it was MasterCard (MA) – and the stock went up 120% in seven months.
• Insiders Place Bets on Global Warming Play, posted February 1, 2007 (HSOA) - Ever since Al Gore’s movie “An Inconvenient Truth” hit the circuit last year – and spooky-warm weather seemed to confirm his thesis – many investors have been on the hunt for climate change stocks.
• Three Tiny Mo-Mo Stocks for a Big Mo-Mo Market, posted January 24, 2007, (TIXC, IESC, FRMO) - There’s so much bullishness in the market now as indices and many stocks hit all-time highs, you need to be careful. Often when bullishness gets to these extremes, a pullback providing better prices lies around the corner.
• Look Out Energizer Bunny, Here Comes the Fuel Cell Battery, posted January 18, 2007 (MKTY) - Wouldn’t it be nice to get a month out of your cell phone battery without having to recharge? That may sound far fetched. But it’s the kind of mileage you could see from fuel cell-based batteries in a few years.
• An Unconventional Energy Player in the Driver’s Seat, posted January 11, 2007 (PHX) - Our energy bets are bruised and battered, and it’s easy to see why.
• ¡Hola! Four Hidden Plays on Continued Emerging Market Strength, posted January 4, 2007 (ETF, LAQ, IF, CH) - We missed much of the enormous gains in foreign markets last year because we follow signals from insider buying at U.S. companies.
• Online College Is Hot, But This New IPO in the Space Merits Barely Passing Grades, posted December 29, 2006 (CPLA) - A new year has arrived which means many of us are making vows to improve our lives. For lots of people that will mean taking college classes online – if the recent trends at Capella University are any guide.
• “Get Rich Now!” with Whitney Information Network, posted December 28, 2006 (RUSS) - If you’ve ever had doubts about those late-night day trading infomercials promising an easy path to “financial independence,” it turns out you may be right.
• How to Play the Immigration Trend, posted December 21, 2006 (WU) - When U.S. immigration agents raided Swift & Co. meat plants last week as part of a six-state crackdown on illegal immigrants known as "Operation Wagon Train," it touched deep emotions all around.
• Lagging Natural Gas Play May Outshine in 2007, posted December 14, 2006 (XEC) - While many North American natural gas plays are flat for 2006 following a very volatile twelve months, shareholders of Denver-based Cimarex Energy won’t even manage to break even this year.
• A Scratch ‘n Dent Stock Suitable for a Frothy Market, posted December 8, 2006 (IEAM) - It’s been a couple of good months for Insiders Corner.
• Three Safer Stocks to Buy As the Market Gets Frothier, posted November 30, 2006 (PXG, CSAR, AHR) - I don’t mean to spoil the party, but the market’s dramatic snap-back this fall is starting to look like its on shaky ground. Three things raise some concern – suggesting that the sharp but temporary pullback earlier this week could be a sign of more trouble ahead.
• Lessons Learned and What’s In Store: Don’t Get Too Giddy From Your Stock Market Gains, posted November 15, 2006 - With the S&P 500 crossing the 1,400 mark Wednesday for the first time in six years it’s now official: We’ve had one heck of a sweet ride since the gloomy days of summer.

>>more articles

The insider signals at smaller companies like these can precede phenomenal gains in a stock, exactly because few investors are watching companies in this corner of the market. These tiny companies, for example, typically don’t even have any Wall Street analyst coverage. So in many cases, the insider signal is one of the only ways that we – as outsiders – can get the message that good things are about to happen.

At Insiders Corner, we will use the insider signals to select picks every week, when available, with a summary of the business trends that may lead to stock price gains. Then we will track the picks in a live portfolio.

Anyone who plans to use Insiders Corner as a source of investment or trading ideas should keep the following key points in mind.

• Insiders tend to be early with their transactions. Insiders are good at spotting value in their own shares, but they are lousy market timers. They buy early, and it is not unusual for a stock to decline after the initial spike sparked by their purchases. The chances are good, however, that significant insider buying will be followed by some good news – and share appreciation -- over the next six months. In short, be patient when following the insiders.

• Investors following this column are reminded not to bet the farm on any single stock. Yes, insiders are smart, but they can also be wrong. So as a general rule, you shouldn’t put more than 2% to 5% of your overall portfolio in any single position. If you invest more, you are gambling, which isn’t necessarily a bad thing. But you should be fully aware that you are gambling, not investing, and accept all the additional risks that come along with that activity – like the risk that you could lose too much of your money because of poor diversification.

• Investors following this column are urged to acknowledge when an idea is not working out – by selling a stock and taking losses soon enough to prevent more serious damage. As a general rule, many investors automatically sell a stock after a 25% or 30% decline, based on the idea that such a decline suggests some sort of problem that someone knows about, even if you don’t. This won’t always be the case. Sometimes the stocks of decent companies decline rapidly because of profit taking or sloppy exits by careless fund managers. But as a general rule, when the declines start to get steep it is better to cut losses, and make up for it by letting your winners run.

• We will provide disclosure. Whenever I have a position at the time of publication in a stock featured in this column, I will disclose it. I will refrain from selling the position for two trading days from publication. If I do not have a position in a stock featured in this column, that does not make the stock any less valid as a pick. I may already have enough exposure in that sector, or enough exposure to the market overall. I may take a position at any moment, and that position may change at any time depending on market conditions. I never get any form of compensation from the companies I write about, or any third parties. I never get any form of compensation from InvestorIdeas.com to feature specific companies. InvestorIdeas.com does not select what companies are featured in this column. I am completely independent in my choices about what companies to put in this column. I select companies on the basis of the strength of the insider signal, conversations with analysts and the companies, and my own research.

• Small-cap stocks may be subject to more risk than stocks of larger companies. Small-cap stocks tend to have lower liquidity and greater volatility. And often there is less publicly available information. Be prepared to deal with the frustrations that can come along with these factors, if you buy small cap stocks. On the other hand, these stocks can produce enormous gains for the very same reasons – because they are small and undiscovered. Before those gains occur, you may need the strength to stomach the inevitable ups and downs in this corner of the market.

TOP