- December 2012 - Insider selling continues to swamp
buying. This can be attributed to good gains YTD. What it is also indicative of is that insiders are
being cautious when weighing their prospects going forward in 2013 as well as uncertainty with regard to personal tax rates for the wealthiest.
- Over the past 4 to 6 weeks, we have seen a significant uptick in the amount of insider buying at
smaller regional banks, companies in the finance business, and mortgage-related REITs. We believe this is
indicative of investors focusing too heavily on near-term weak results and not accounting for the ability
of these companies to stengthen going forward. A number of the mortgage REITs are now paying dividends well in
excess of 10%. Granted, things could get worse, and dividends can be cut. However, surveying the landscape we
believe there are some opportunities in this sector.