If you are looking for clues telling you which stocks have a good chance of increasing in value, you might want consider watching what insiders are doing. After all, talk is cheap, but when insiders put their own money on the line, you should sit up and take note.

American Eagle Outfitters Inc. (AEO) topped the insider-buying charts for the week ending July 9th as insiders snapped up 500,000 shares of company stock at a market value of $6,790,000. During the past six months, insiders have increased their overall holdings in the company by 3.91% and now own 8.30% of AEO stock.

Tuesday's good economic news on consumer spending followed good news on housing prices, and a majority of earnings reports beat consensus estimates. Nevertheless, it was not enough to sustain world stock markets from racking up sizable losses as economic news about Greek debt being downgraded to junk statues made us all tremble in crises proportions as the possibility of default looms.

The Greek government has finally asked that the European Union help by releasing funds committed just recently in a $45 billion Euro package. The EU, sending shivers around the globe, is balking until they see evidence that Greece has passed meaningful debt reduction legislation. In the mean time, Greek bonds have surged to 24%. This does not surprise me having recently questioned why anyone would buy Greek bonds at market rates given so many better alternatives.

When I read that economically troubled Greece has 10-year bonds currently yielding between 6.32% and 6.44%, I wondered why these have any worth at all given the many alternatives offering a better return and greater liquidity? This baffled me.

Only Tuesday, I wrote about Telecom Corp New Zealand (NZT), a stock paying over 10% yield. The story also mentions that AT&T, Inc. (T) is currently paying a 6.4% yield and Verizon Communications Inc. (VZ) is offering 6.25%. From my perspective, these are far better bets, safer and with some upside too than Greek debt.

Dividend Yield: 13.6%
Market Cap: $788 million

Prospect Capital (PSEC) is a venture capital and private equity firm specializing in middle market, mature buyouts and recapitalizations. As the market environment improves and economic indicators point upwards, this is an area of big potential for investors.

Prospect recently had been planning to spend a chunk of its cash on a buyout of competitor Allied Capital (ALD), but abandoned the deal to another company.

Dividends are an often overlooked but crucial part of a successful retirement strategy. These quarterly offerings can provide a regular "paycheck" for retirees -- especially when the company is a high-yielding blue chip with a track record of boosting its dividend year after year.

But dividends don't just have to be a quiet way to grow your nest egg. They can really supercharge your returns when you buy into a great stock that also happens to be cash-rich. On top of the appreciation you see in your shares, you'll also get a great bonus checked mailed four times a year -- or more, depending on the dividend schedule.

When you run across a stock with a 16% yield you at least have to check out the story. Prospect Capital Corp (NASDAQ: PSEC) is just such a company. Last week PSEC declared its 20th consecutive increased dividend.

In sharing my adventures and opinions in the investment world I try very hard to be candid without crossing the line into being a promoter. That said, I have been buying stock regularly over the last 12 months and buying on fear has paid off handsomely. As the market has catapulted upward since March the opportunities have diminished. However, I did add PSEC in the last month.

Analyst upgrades:

• FBR Capital upgraded Talbots (NYSE: TLB) to Outperform from Market Perform as it believes the company's inventory and SG&A control should help earnings and the stock's risk/reward is compelling at current levels. The firm raised its target on shares to $7 from $5.
• ThinkEquity upgraded Human Genome (NASDAQ: HGSI) to Buy from Accumulate to reflect higher assumptions for the company's Lupus treatment Benlysta. The firm raised its target on shares to $26 from $18.
• KeyBanc upgraded Parkway Properties (NYSE: PKY) to Buy from Hold based on valuation, improving fundamentals, and stable capital position. The firm has a $17 target on the stock.
• HSBC Holdings (NYSE: HBC) was upgraded to Overweight from Neutral at JPMorgan.
• BioScrip (NASDAQ: BIOS) was upgraded to Overweight from Neutral at Piper Jaffray.
• DISH Network (NASDAQ: DISH) was upgraded to Outperform from Neutral at Credit Suisse.

MOST NOTEWORTHY: Lincoln Electric, Prospect Capital and GMX Resources were today's noteworthy initiations:

• Piper believes Lincoln Electric (NASDAQ: LECO) is positioned to capitalize on global infrastructure spending as a leading manufacturer of welding/metal fabrication equipment and materials. Shares were initiated with a Buy rating and $100 target.
  
• Wachovia said Prospect Capital (NASDAQ: PSEC) has good visibility on portfolio growth and sees significant value in the potential sale of the company Gas Solutions business. The firm assumed shares with an Outperform rating.
  
• Collins Stewart initiated GMX Resources (NASDAQ: GMXR) with a Buy rating and $67 target. The firm believes the company's drilling program will continue to drive both strong production and proved reserves growth.

OTHER INITIATIONS:

• Louisiana Pacific (NYSE: LPX) was initiated at RBC Capital with an Underperform rating and $10 target.
  
• The firm also started Mercer International (NASDAQ: MERC) with an Outperform rating and $11 target.
  
• Keefe Bruyette initiated SWS Group (NYSE: SWS) with a Market Perform rating.