David Sterman

A regular scan of Securities and Exchange Commission (SEC) filings by corporate insiders can point the way to great investment opportunities. These officers and directors use their own funds to snap up their company's stock on the open market. You'll often find recognizable names, underscoring bullish opinions you may already have. For example, insiders have recently acquired shares at firms such as Chesapeake Energy (NYSE: CHK), Ford Motor Co. (NYSE: F), Whirlpool (NYSE: WHR) and Family Dollar Stores (NYSE: FDO).

Yet you'll also come across companies you've never heard of, the ones that toil in anonymity until they appear on various stock screens. With this in mind, I've taken a look at several small stocks that recently saw significant insider buying and found three companies that appear to have especially strong appeal. (Special thanks to insiderinsights.com, which provides me with the insider information used in this and other insider-focused stories).

Here they are…

David Sterman

David Sterman has worked as an investment analyst for nearly two decades. He is currently an analyst for StreetAuthority.com