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CEOS Are Finally Buying, Should You?

It appears Vikram Pandit thinks his stock is a steal. The Citigroup Chief along with other top execs increased their stake in “Letter C” this week, after it traded down in the single digits.

And you know those Dow Chemical scrubbing bubbles make your bathroom shine, but what about your portfolio? Dow CEO Andrew Liveris is betting they can. He snapped up a bigger position for himself at $23 a share.

It’s the same story at Lear, Corning and General Electric. Those CEOs are increasing their positions too.

With so many insiders buying their own stock, they must know something that you don’t. Right?

Maybe, maybe not. "Insider buying hasn’t been a great tell so far, says Lon Juricic, president StreetInsider.Com. Just look at Aubery McClendon, if you followed him into Chesapeake you would have gotten smashed."

And nobody likes getting smashed. But that seems much less likely now.

"In 2005 insiders in the homebuilders were selling stocks like mad," he says. "And you know what happened." Their stock prices dropped precipitously. "This time around it's insider buying and personally I think something is going on."

Traders, what do you think?

“I wouldn’t rush into these stocks on the back of this,” says Guy Adami. "The only stock that's remotely interesting here is Corning but for me, that's a play on the Circuit City bankruptcy."

“Insider buying does interest me,” says Karen Finerman. “(In theory) you’d think a CEO knows a thing or two about their business.” And maybe it's something that you don't.

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High Levels Of Insider Buying This Week
Citigroup
GE
Dow
Lear
Corning
SOURCE: StreetInsider.com

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Trader disclosure: On Nov. 14, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Is Short (TM); Macke Owns (MSFT), (UUP), (MGM), (WMT), (MCD); Finerman's Firm Owns (MSFT); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (USO), (BBT), (GNK), (COF); Seymour Owns (AAPL), (BAC), (EEM), (F), (FXI)

Lon Juricic Owns General Electric

GE Is The Parent Company Of CNBC