Since the 1970's, the SEC has published monthly data on the purchases and sales of corporate insiders, who include corporate officers (CEO’s, CFO’s, etc.) members of the board of directors, and any beneficial owner of more than 10% of a class of the company’s equity securities. However on July 30, 2002 the Sarbanes Oxley Act was signed into law requiring corporate insiders to inform the public of their purchases, sales, or intention to sell within 48 hours of doing so. (Note: This is done through filings, usually done electronically, via Form 4, through the SEC’s EDGAR - Electronic Data Gathering, Analysis, and Retrieval system). We believe this single piece of legislation essentially closed the information gap between corporate insiders and individual investors.

Garden State Securities Corporate Insider Research seeks to identify corporate insiders who have previously demonstrated an ability to purchase their company stock at beneficial times. Each insider identified has certain characteristics including, but not limited to:

• The insiders are individuals, thus institutional investors (greater than 10% shareholders), other than directors, are excluded;
• The insiders must have made at least two open market purchases in the same security prior to their most recent purchase, with at least one purchase occurring more than twelve months ago. (Note: Beginning in 2011, an insider must have made at least two open market purchases more than twelve months ago);
• The insiders must have produced positive 12-month returns on each of their purchases;
• The insiders’ average 12-month returns on those purchases must exceed 25%.

Garden State Securities reviews each transaction’s related SEC Form 4 filing to compile the historical data presented.

Garden State Securities Inc. (“Garden State”) is a broker-dealer registered with the Securities and Exchange Commission, and a member of FINRA and SIPC. The information provided herein pertains to those services being offered by Garden State to U.S. retail investors in its capacity as a registered broker-dealer. This sales material is not research, nor is it an offer to buy or sell a particular security or other instrument or solicitation of such an offer. The information contained herein is not intended to form the basis for an investment decision.

Past performance is not necessarily a guide to future performance. Investments carry an inherent risk of loss, which may include loss of the entire principal amount invested. This material has been prepared and issued by Garden State for distribution to its clients and prospective clients only. Other recipients should seek independent investment advice prior to making any investment decision. This material does not provide individually tailored investment advice or offer tax, regulatory, accounting or legal advice. Prior to entering into any securities transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of the transaction.

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