Quantitative Value, + Web Site: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors

PART FIVE

Corroborative Signals

In this part, we explore the signals sent by other market participants. Here, we parse the signals sent by buybacks, insider purchases, and buying and selling from institutional investment managers like activists and other fund managers and short sellers. We examine the literature and the data to find the most predictive signals. We can use these signals to corroborate our quality and price analyses, perhaps to confirm our theory that a given stock is undervalued, or to identify potential problems.