He also watches for things like product introductions and insider buying.

Similarly, insider buying is impressive when it happens in a lofty stock market like this one.

Q. What about insider buying and selling.

"I generally look for insider buying - the more the better," he said.

The insider buying suggests that these companies' shares are undervalued.

Q. Can you give me some examples of insider buying?

If we get a stock down 50 percent or more and then two of these four line up, you don't have to have insider buying.

There has also been considerable insider buying of the stock.

Tiny companies all, they tend to feature rapid earnings growth, heavy insider buying, rising stock prices and what he views as exciting new products.

He also looks at what he calls indications of "signaling" - generally insider buying and short-selling.