Insider Buying Week Ending June 21, 2019

PBF Energy CEO Buys $950,000 in Stock Moments before Competitor’s Refinery Blows Up reminding me of the saying when it comes to Wall Street, Sometimes It’s Better to be Lucky than Good

Ron Perleman thinks Scientific Games is his lottery ticket. Investors aren’t so lucky.

Prospect Capital Corp insiders like its 10% plus yield yet the stock is lower now than a year ago in spite of the bull run in yield sensitive names.

Medicine Man Technologies is no cure for poverty.  Insiders can play games too.

Insiders sell stock for many reasons, but they generally buy for just one – to make money. THE INSIDERS FUND invests in companies at or near prices that management has been willing to invest significant amounts of their own money in.  After all, who knows a business better than the people running it?  You’ve always heard the best information is inside information.  This is as close to “insider information” that an ordinary investor is likely to see- and it’s entirely legal.

As a rule, we only look at material amounts of money, $200 thousand or more, as anything less could just be window dressing. The bar is different from selling because the natural state of management is to be sellers. This is because most companies provide significant amounts of management compensation packages as stock. Therefore, with selling, we analyze for unusual patterns, such as insiders selling 25 percent or more of their holdings or multiple insiders selling near 52-week lows. Another red flag is large planned sale programs that start without warning. We generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and not the SMART money we are trying to go to school on.  Although this info is available for free from the SEC’s Web site, Edgar, we subscribe to the Washington Service as they provide a way to manage and make sense of the vast realms of data. To learn more about our strategy, visit our website. We may own positions, long or short, in any of these names and are under no obligation to disclose that. We welcome your comments on our analysis.

 

If you would like to hear more about how you can get involved with the Insiders Fund, please schedule some time on my calendar.