Nestor Inc. (NDAQ:NEST) has been seeing an increasing amount of open market insider buying lately (revealed in Form 4 filings with the SEC) ahead of its quarterly earnings release. The trend continued today as the company's CEO, William B. Danzell, disclosed a 20,000 share purchase valued at almost $28,000, bringing his stake up to 10,069,396 shares. Yesterday, the company's director, Michael C. James, also disclosed purchases totaling 20,000 shares, bringing his stake up to 331,641 shares. There were several other recent open market purchases by these two earlier this year, each totaling around 20,000 shares. The buying began just after the company transferred its listing to the Nasdaq Capital Market and announced that it was cutting 20% of its workforce in an effort to reduce current operate expense levels and focus on the company's operations on program delivery and support. It appears that management is confident that the increased liquidity of the Nasdaq Capital Market combined with their efforts to reduce costs will help turn the company around after its drop from $4 earlier this year to just $1.35 now. It is also worth noting that much of management holds many out-of-the-money stock options, which should motivate them to do anything they can to increase the share price. This makes NEST a stock worthy of our watchlist.

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