What is the 'Remove The Noise' function in your insider trading data?
The "Remove The Noise" function simply unselects JB and JS Transaction Types from the insider search interface, and subsequent
Not all insider transactions are equally useful for garnering investment intelligence. The non open-market transactions
indicated by Transaction Types JB and JS are generally the least useful. In fact, some insider histories have so
many JB and JS transactions that they actually distract investors from the patterns of executive sentiment
created by the more important open-market transactions sprinkled among them. General Electric (GE: NYSE) is a good example
of an insider history that is best viewed without JB and JS transactions.
For more detail on what specific Form 4 codes get translated by our proprietary data feed into JB and JS Transaction Types,
see our Key To InsiderInsights' Transaction Type and Title Codes.
We added the Remove The Noise function to both educate and assist our clients with their insider-based equity
research. The function reminds you that JB and JS transactions are more often than not just "noise" to be ignored when analyzing
insider histories. The Remove The Noise function also makes it easy for you to clear away the eye clutter
JB and JS transactions often create in insider data histories.
Try getting this useful bit of functionality from other (much more expensive) professional-grade insider products. And forget about
getting this feature on other free insider histories.
Don't get us wrong. We're not saying you should never view insider histories with JB and JS transations included. They can
sometimes add perspective. We have also seen Form 4s filled out incorrectly, turning what should have been an open-market
transaction into a non open-market one. And some insider histories only have a few JB and JS transactions in them, making
their inclusion in the output no big deal.
The greater risk, however, is that clients will not understand that JB and JS
transactions are less significant, and they will miss seeing important insider patterns due to the noise JB and JS transactions
But prove it to yourself. View the output for GE both with and witout JB and JS Transaction Types. And the next time you
are analyzing a multitude of insider histories for significance, flip back-and-forth including JB and JS transactions and
excluding them in our output. We think you'll agree that it is usually more useful (and therefore more profitable)
to...Remove The Noise.