What to buy in a market crash? - short read 4 mins.

 ***I have a request for you at the bottom.***

When a market crashes, stonks go down. Image 0.

Image 1. For those you less inclined, I put a visual for you to understand better. Image from finviz. Two metrics: stock price less than 70% 52-week high. And insider buying. Also, as an extra I look for dividend paying stocks (showed in image 1) so that I get dividends while I wait for stocks to go up.

Where do you get insider buying data for NYSE and NASDAQ? openinsider.com and finviz.com.

They come from form 4, and these websites compile it for you.

Let me show you some examples. 

What does this get you? This gets you stock that the market thinks is bad, but the insiders know better and are buying their stock hand over fist. Insiders are corporate insiders (CEO, COO, CFO, CIO, CMO, VP operations, VP internal external, and directors.) Deeply undervalued stocks. Just this March Corona-beer (see image 2) crash so many insiders bought at depressed stock levels and now they are up 200%, 300%, 400%, and beyond 1000%. Insiders are not stupid, they don't buy stock to lose money. They buy stock to make money. They only buy if its profitable. Remember, on top of their stock compensation, on top of their stock options, they go out and buy open market buys of stocks, that means they are really convicted, sure of themselves.

During a market crash, there is a lot of uncertainty. Usually the bubble pops, perhaps an economic downturn, and many companies may go bankrupt if daddy J. Powell doesn't step in and turn on the money printer (unfortunately.) Refer to image 3. 

What to look for in insider buying:

This is very important. Don't just buy every stock that insiders buy. You must look for multiple insiders buying stock. Not just one insider buying the stock. You want them to buy a sizeable portion, not just a small bit. They need to buy with conviction. Like this: 

 

$DCP nyse stonk up 750%.

$COWN nasdaq stonk up 350%. 

Multiple insiders buying and sizeable amounts (lots of insider buying.) No baby buying. 

Obviously I do own my financial analysis with these guys before buying stock.

*also it is not a bad idea to look for companies that have low debt (low D/E ratio) because in a market downturn it is hard to get refinancing and it is very expensive. Better to have cash. 

Let's change the name to stonk market. Sign this petition. http://chng.it/jhqynPGhJ2. Every vote counts. You matter!

Appendices Images.

Image 0.

Image 2.

Image 3.