Our extensive experience tracking corporate insiders shows, that while most insiders are better qualified to evaluate their company’s future prospects than a Wall Street analyst, there exists an elite few who continue to profit from the buying opportunities created when markets temporarily undervalue their company’s shares.

Through our proprietary quantitative screening process, we have identified a select group of corporate insiders who have a track record of purchasing their company’s stock at beneficial times. The result of this process is our Admiral Insiders database.

Admiral Insiders identified exclusively by Garden State Securities, Inc., have demonstrated exceptional timing when purchasing their own company stock. Some of the characteristics defining Admirals are:

• Admiral Insiders are typically individuals, thus institutional investors (greater than 10% shareholders), other than directors, are excluded.
• Admiral Insider 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.¹
• Admiral Insiders must have produced positive 12-month returns on each of their purchases.²
• Admiral Insiders average 12 – month returns on those purchases must exceed 25%.³

The average calendar year return of the collective group of Admiral Insiders we’ve identified over the past three years is ⁴:

2008: +17.95%
2009: +165.29%
2010: +33.25%

Footnote:
1. Beginning in 2011, an insider must have made multiple open market purchases in the same security prior to his/her most recent purchase, with at least two of these purchases made more than twelve months ago.
2. The "Insider Purchase Price" is compared to the closing price on the 12-month anniversary date to determine if the purchase produced a positive percentage return.
3. The returns of each insider purchase are added and the sum is divided by the number of purchases to determine the Average 12- month return.
4. Average Calendar Year Return: The average calendar year return is calculated by taking the "Insider Purchase Price" for each transaction and comparing it to the subject company’s "Calendar Year-End Closing Price" on December 31st of that same year. We then divide this difference by the "Insider Purchase Price" to determine the "Insider Purchase Price Percentage Return." The sum of the "Insider Purchase Price Percentage Return" figures is then divided by the number of insider transactions to determine the "Average Calendar Year Return".