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Tickers in this Article: GIS, AMR, BYD, DAL, CAG
The overall market has rebounded quite sharply from its lows in early March, but is it just temporary, or is there a possibility that the momentum could continue from here? That is the big question and at this point I don't think there is a clear answer. However, we should still be looking for signs as to where the market and individual issues may be headed.

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One metric or item that I like to review every now and again is insider activity. As I've said before, it's because I can't think of many reasons why a high-ranking officer might buy a stock other than that she or he thinks it's a good opportunity and that its price could go up in time.

With those thoughts in mind I screened for companies with recent insider buying and the following are some of the situations that I found interesting. (Keeping tabs on company executives can provide clues about where a stock is headed. read Delving Into Insider Investments.)

Going Big
Information in a Form 4 shows that in late March General Mills (NYSE:GIS) director Michael Rose bought 10,000 shares at $48.45. When the insider trading is this big it makes me think that Rose is extremely confident in the future of his company.

Now does this mean that Rose will definitely be right? Not at all. But there are a few other things that intrigue me about the company.

On Sunday GIS issued a release that states it thinks its fiscal '09 earnings per share will come at $3.89, north of its prior estimate of $3.87. I think that's positive as we could see analysts raise their estimates as a result.

Despite the sluggish economy, GIS is expected to show some positive growth in the near future. Analysts are currently expecting it to earn $3.92 a share this year (which I think could go higher), and next year it's expected to turn in $4.18 a share. That implies an expected growth rate in excess of 6%. Not too shabby for a company of its size.

Mixed Results
There are some other food companies that I am also fond of, and ConAgra (NYSE:CAG) is one of them. The Omaha-based company, known for brands including Hunts and Wesson, trades at roughly 13 times this year's estimate. It's also expected to grow at a healthy 8% per annum in the next five years. To the company's credit, it's also beaten analyst expectations pretty consistently over the last four quarters.

AMR Corporation (NYSE:AMR) also looks like a promising company with insider buying. In April, insiders bought a total of 6,000 shares of the company known for its American Airlines. However, I am doubtful that this stock, or airline stocks in general, will soar in the near future.

I think that the demand for travel could remain feeble in the near run. Plus, even if I'm wrong, the cost of oil seems like it could be a stumbling block for many companies in this arena.

As well, AMR trades under $5, which could prevent some institutions from hopping aboard. In addition, I'm not too thrilled with the red ink the company is expected to offer up this year. Finally, I'm not convinced that the company will be as solidly in the black in 2010 as analysts are expecting. I'd rather wait a few more months to see how things evolve. (Some insider trading is actually legal - and can be extremely telling for investors, see Uncovering Insider Trading.)

Other Companies Worth Watching
Of all the players, Delta (NYSE:DAL) is one I suppose I will keep my eye on. It trades under $7, yet it's expected to earn 48 cents a share this year. This is down from 58 cents per share just seven days ago.

A director at Boyd Gaming (NYSE:BYD) bought 1,000 shares in May at $9 per share. That's only a little south of where the stock trades right now.

Now, I realize that this is not a lot of money, and I personally wouldn't make an investment decision based solely on this one trade. That being said, it is interesting that an individual would step up with the economy still on the mend and a struggling gaming industry. It grabs my attention, especially when combined with expectations that the company will post a 42 cent a share profit this year.

Bottom Line
I like to screen for companies with insider buying and I am particularly taken in by the director's buy at General Mills. Of the aforementioned companies, I would consider General Mills to be the most promising.

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