Subject: IC940709: Messages From Insiders is BUY - NY Times

From: "Gray Zhu, 800-289-2498, 212-279-6700" <[email-masked]>
Date: Sat, 9 Jul 94 16:18:41 CDT

==================    IC940709: Investment Club  ======================

1. Business affliation, IC-VIP club and its membership
2. Where to find top funds? 
3. Messages From Insiders is 'Buy' ........ New York Times July 6, 1994
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

1. Business affliation, IC-VIP club and its membership (For new members)

>From: [email-masked] ( Shaojie Xu )

>I'm interested to join the club and become the VIP member. (any
>charge for this? ).  I am assuming that you are a broker, could you
>please let me know a little more about yourself and the company you
>work with?  Thanks a lot.

I graduated from Huazhong (Wuhan) Normal University with a B.S in
physics, and then a graduate student at Institute of High Energy
Physics, Chinese Academy of Science, got M.S. in 1987. I came to
Syracuse University in 1989, and got a Ph.D. in high energy physics
early this year. I was born in 1965 in Hubei, and work hard. A fan of
NCAA (Syracuse, KU B-ball, UK B-ball, UNL football), NBA, NFL, NHL.

I am now an Account Executive (stock broker) with Chatfield Dean &
Co., an investment banking firm, with 800 people and 11 branches all
over the country. we do underwriting (IPO), retail. we buy/sell all
stocks, bonds, all load mutual funds, options (high risk, we do not
suggest too many, but covered call writing is OK), etc.  We set up and
maintain retirement plans (IRA, KEOGH, 401k, 403b, SEP).  Basically,
we are a full service brokerage firm (1%-5% commision), but we provide
discount on different situations such as frequent traders, large
amount transactions, unsolicited orders (the buy/sell is not suggested
by us, and you call us and tell us what to do), subject to minimum $75
per stock transaction. No commission for mutual funds (open-ended,
most funds are) because they have their own sales charges, and we are
paid by mutual funds for service to customers.

VIP is a group (free) where I provide my personal recommendations and
information including stocks, mutual funds, bonds, Initial Public
Offerings (IPO), and possibly private placements.

If you want specific recommendations from me, you may want to become a
VIP member by sending me ([email-masked]) your name, phone numbers
(especially daytime) and address, so that I can contact you and send
you our recommendations through post office.  Or, you can simply call
me up at 1-800-289-2498, or 1-212-279-6700, leave message if
necessary.  Even if you become a VIP, you are not obligated to buy
anything or pay for anything unless you place an order with me towards
your own benefit.  This is optional and 100% voluntary.  VIP material
is not available for ftp.

Mutual Fund purchase does not cost you commission other than the load
(which you have to pay anyway even if you buy through fund itself for
loaded fund).  Rather, you get service from us, and we execute the
order instantly (to order from a fund, you ask for the form, then they
send you the form, you fill it out - assume correct, send out..., I
don't know how long it takes).

No commision is charged to any IPO, according to the law.

-Gray Zhu, 

2. Where to find top funds?

>From: Agricultural Engineering <[email-masked]>
>Subject: John Hancock Freedom Regional Bank Fund

>Regarding to your message for the John Hancock Freedom Regional Bank Fund,
>could you tell us what is the phone number for the Fund?  What is the 
>performance of the Fund for the past 1, 3, and 5 years?  Where can we get
>more information about this Fund?  By the way, could you recommand some
>top funds for us?  Thanks.
>
>H. Song

Gray: I have replied a message concerning John Hancock Freedom
Regional Bank Fund. The top funds are Japan Funds and financial
services funds (including Bank funds). The rest are down according to
New York Times (July 3, 94). You can find out in:

Investor's Business Daily
New York times
Wall Street Journal
Money
BusinessWeek
Fortune
..

3. Messages From Insiders is 'Buy' 
     - New York Times July 6, 1994, by Floyd Norris

The dollar is down and interest rates are up. There is talk of new
bear market. In that atmosphere, who would want to buy stocks?

Corporate Insiders.

Buying by insiders - officers and directors of companies - is by some
measures running at its most intense since 1991, when the stock market
was taking off in the bull market that began with the Persian Gulf
war.

"Insiders started picking up when the market bottomed", said David
Coleman, the editor of Vicker Weekly Insider Report, a Washington
newsletter that tracks insider buying and selling. "In 1987 and 1990,
they did the same thing." (1987 market crashed, 1991 market was
affected by the war - Gray)

Reading the signs

Last week, Vickers recorded more purchases than sales among insiders
whose stocks are listed on the New York or American Stock Exchanges,
by a margin of 5 buys for each 3 sells. For the last eight weeks, the
average such figure is almost even: 1.07 sells for every buy.

That may not sound all that bullish, but it is. Insiders have lots of
ways to get their hands on stock before they resort to buying it on
the open market. Many have shares from before the company went
public. Even more get options to buy stock. Such options are often
exercised at the same time the stock is sold, leaving the insider with
no market risk.

As a result, there are almost always more open-market sales of stock
by insiders then there are similar purchases. And while insider
selling is often a warning of bad news, insider buying is viewed as an
even better indicator of a stock's being worth consideration. After
all, as many a corporate officer has explained, there are lots of
reasons for an insider to sell besides bearishness. The insider wants
to diversify investments, or pay for a new house, or college
tuition. But there is no obvious reason to buy, except hope that the
price will rise.

There is, of course, no gaurantee that an insider will be right. And it
is a crime for an insider to buy if he or she has material nonpublic
information.

Nonetheless, as Mr. Coleman noted, "they are the people that know
companies best, and when they start buying, that is a good signal."

A level of buying as high as the current one has often served as an
indicator for the entire market. Vickers regards as bullish a ratio
under 1.32 sales for each open market buy.

Insiders are required to report their transactions to the SEC by 10th
day of the following month. Thus all June trades are due at the SEC by
next Monday. Many such reports still come in late, but stiffer rules -
including a requirement that companies report to shareholders why
officers and director were late in filling - have prompted the filing.

As a result, the ratios now being reported include activity in May as
well as in June, and thus are somewhat behind the time in terms of
actual activity.

Vickers compares the number of sales by insiders with the number of
open-market purchases, regardless of the size. And while Vickers
reports weekly figures - last week's ratio of 0.61 sell to each buy
was the second lowest in the last 3 years - it focuses on an 8-week
moving average to smooth out the data.

"Since October 1974, when we began plotting this data, the market has
not failed to improve significantly when our eight-week sell-buy ratio
fell below 1.0". Mr. Coleman said. The ratio fell below that figure
last month, although it edged back up at the end of the month.

Mr. Coleman said he also computed a ratio showing the rate of change
for the 8-wekk moving average. Rapid falls, he said, can warn that
even an otherwise bullish indication is suspect, while fast rises can
indication that insider opinion is turning. That indicator, which was
negative as recently as early May, has grown to its most positive
level since, once again, 1991.

Among individual stocks, Mr. Coleman said he had seen condiderable
interest in a number of gambling stocks. Casinos were darlings of Wall
Street in 1993, and a lot of insiders chose to sell then. But the
stocks have been driven down this year, and recently there has been
interest shown by insiders in such companies as Boyd Gaming, Circus
Circus, Casino Magic, Station Casinos, Grand Casinos and Sahara
Gaming.

And IBM has had substantial insider buying, at prices from $55 to $58
and a bit higher, Mr. Coleman noted.

/the end of story.

==========================================================================

                           Disclaimers:

 a) Material on ICnet  is for general information only, and made available
    to  voluntary  subscribers  (subscription  is  free).    There  is  no
    guarantee of  accuracy in either text or numbers, so please read  with
    your own discretion.  Opinion expressed by any author is  his own, not
    necessarily  his  employer's.  Nobody on  the icnet-l or related (Hong
    Guang, Gray Zhu or their employers, or any other members, or ifcss.org
    which is the  ftp provider) except yourself assumes any responsibility
    for any consequences of using the material.

 b) You are free to forward and copy the material  for private use. If you
    do forward, it is mandatory to let it ALWAYS GO  WITH DISCLAIMER.  Use 
    of the material for commercial  purpose without written consent of the 
    author is prohibited.

 c) Any past  performance examples should not be  considered an indication
    of future results.

==========================================================================
    Any VIP related message should be addressed to: [email-masked]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                  ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF to: [email-masked], with mailbody as:
                  SUB ICNET-L Firstname Lastname or: SIGNOFF ICNET-L
  Post mail to:   [email-masked]
  Anonymous ftp:  at ifcss.org, in direcctory: /org/icnet
  Gopher:         /org/icnet on ifcss.org, /ifcss/org/icnet on cnd.org
  Managers:       Guang Hong, [email-masked]
                  Gray Zhu, [email-masked] (800)-289-2498
__________________________________________________________________________
     ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~