Insider Buying Week 5-13-22- Insiders are Putting their Toes into the Caldrum

 

Curious how well insiders are doing with their buys? Scroll through the significant buys of the last year.

Two things happened Thursday which may have put a temporary bottom in the market’s steady descent downward. I’m going to hazard a guess. More than likely it was the report that Fed Chairman Powell did an interview on NPR in which he all but promised two more 1/2 point interest rate hikes at each of the upcoming Federal Reserve meetings. The bond market took this news in stride and stocks held steady.  The second fulcrum point was the news that Finland and Sweden would apply for NATO membership and would eagerly be received.  The die seemed to be cast. Russia would not only lose the battle with Ukraine but they would lose the war with the West. The second and perhaps final curtain call had dropped on the Iron Curtain.  Then duplicitous Turkey dropped its bombshell that it would not look favorably on their membership application and low and behold we became aware of the fine print.  Nato membership must be ratified by unanimous consent.

Against that backdrop, insiders stepped up buying fairly dramatically. In this report, we try to analyze the merits of those purchasing decisions, what they mean to the average investor, and perhaps the true motivations of the buyers. After all the headline reads insiders buy for one reason, to make money.  Only if it was that simple. Insiders should have perfect knowledge but their motivations might not be pure.

 

Name: Newcomb Robert T
Position: Director
Transaction Date: 2022-05-05 Shares Bought: 750 Average Price Paid: $669.55 Cost: $502,160.00
Company: First Citizens BancShares Inc (FCNCA)
Customers of First Citizens Bank can do more with their money. It is a full-service financial organization, with a track record of solid leadership few banks can match. Its parent company, First Citizens BancShares, Inc., is currently a family-controlled bank. Bank services, vital business and professional services, wealth management capabilities, a full-service telephone bank, and advanced internet and mobile banking are all available through First Citizens Bank. The organization is dedicated to representing the great diversity of the communities in which it operates. It aims to motivate employees to reach their maximum potential by contributing to the company’s success and service excellence. Financial information security is one of the company’s top concerns.

Robert T. Newcomb is the Chairman and President of Newcomb Affiliates, Inc. at the moment. Mr. Newcomb is also a member of the boards of directors of First Citizens BancShares, Inc. (North Carolina), First-Citizens Bank & Trust Co. (Raleigh, North Carolina), YMCA of the Triangle Area, Inc. (past Chairman), and Raleigh Cemetery Association. He formerly worked at Newcomb & Co. as President.

Opinion: Rising rates are historically good for banks unless a flattening yield curve portends an impending recession. That’s where the market is right now as banks have been poor performers. Insiders though seem to have a different view on this as there is a trend of bank insiders buying their stock now.

 

Name: Knight Lester B
Position: Director
Transaction Date: 2022-05-05 Shares Bought: 14,000 Average Price Paid: $286.58 Cost: $4,012,124.00
Company: Aon plc (AON)
Aon plc is a professional services organization that offers risk, retirement, and health advice and solutions to clients all over the world. It provides commercial risk solutions, such as retail brokerage, cyber, and global risk consultancy, as well as captive management, as well as health solutions, such as health and benefits brokerages and health care exchanges. Treaty and facultative reinsurance, as well as insurance-linked securities, capital raising, strategic advising, restructuring, mergers and acquisitions services; corporate finance consulting services and capital markets solutions products, are also offered by the organization. It also provides strategic design consulting services for their retirement programs, actuarial services, and risk management services; advice services on developing and maintaining investment programs for a variety of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, as well as other institutions; and advice and solutions that help clients in risk, health, and wealth through commercial risk.

Mr. Knight is a founding partner of RoundTable Healthcare Partners and was previously the Vice Chairman and Director of Cardinal Health, Inc., a diversified healthcare services firm. Mr. Knight had previously worked for Baxter International, Inc. and was Chairman of the Board and Chief Executive Officer of Allegiance Corporation from 1996 until February 1999. In August 2008, Mr. Knight was elected Chairman of the Aon Board of Directors. He serves on the boards of NorthShore University HealthSystem and Junior Achievement of Chicago, as well as being a trustee of Northwestern University and a member of The Commercial Club of Chicago’s Civic Committee. Mr. Knight serves on our Board of Directors as Chairman of the Executive Committee, Chairman of the Governance/Nominating Committee, and Chairman of the Governance/Nominating Committee’s Inclusion and Diversity Sub-Committee.

Opinion: Knight has had a good record in the past of timing his stock purchases in the past but admittedly we are in a new era of investing, one with rising rates as a significant headwind for stock values. What is AON’s worth today? Certainly, risk management is in a bull market as the world looks far riskier than it did months ago but are customers willing to up their spending to catch up with the chronic overvaluation of AON? The DCF value according to Old School is just $220.04 substantially below its current value. The P.E of 44.55 and the P/FCF ratio of 39 are both unattractive to me.

Name: Bilbrey John P
Position: Director
Transaction Date: 2022-05-13 Shares Bought: 1,000 Average Price Paid: $264.42 Cost: $264,420.00
Company: ALIGN TECHNOLOGY INC (ALGN)
Align Technology is a medical device company that focuses on making people’s smiles better. They revolutionised the way orthodontic and restorative treatment is presented and delivered to millions of people around the world. Align Technology launched the clear aligner business 25 years ago with the release of the Invisalign system. They’ve employed innovation to change the orthodontic market since then, transitioning from digital appliances to digital platforms. Clinicians and laboratories in over 120 markets worldwide use the Invisalign system, iTero intraoral scanners, and exocad software to improve smiles for patients, from simple tooth alignment to sophisticated adjustments, from children to adults, orthodontics to multidisciplinary restorative treatment. Over 12 million patients have benefited from their solutions, and practises all over the world are using the Align digital platform as part of their modern, digital approach to changing smiles and lives. World They believe that a brighter future can be achieved by improving one’s smile. As a result, create digital technology and experiences to assist individuals in smiling more.

Raymond Larkin, Jr. has been a director of Align Technology since March 2004. In February 2006, Mr. Larkin was appointed Chairman of the Board. He is currently a principal of Group Outcome L.L.C., a medical technology merchant banking firm. From 2001 through 2007, he worked part-time as a Venture Partner at Cutlass Capital, a venture capital firm. Before joining Group Outcome, Mr. Larkin was Chairman and CEO of Eunoe Inc., a firm that was looking into ways to slow or stop the advancement of Alzheimer’s disease. He was previously the President and Chief Executive Officer of Nellcor Puritan Bennett, Inc., one of the world’s largest manufacturers of respiratory products. Mr. Larkin guided Nellcor to $1 billion in revenue over the course of 15 years.

Opinion: Align is a poster boy of the leaders in large addressable markets being overvalued. There is certainly the possibility of a bounce from the stock price collapse and indeed ALGN is up 4% from the purchase price. It’s down 7.89% from the previous week when the CEO Hogan bought $2 million worth of stock.

High-growth stocks are difficult to evaluate when they grow by acquisition. Analysts are falling all over themselves cutting their targets on Align but the lowest target is at $418.  How can they be so wrong? Revenue seems to have stalled out in 2019-2020. Competitors like Smile Direct began offering Invisalign-like braces at half the price. Align Technology, Inc. announced in March 2020 that it has signed a definitive agreement to acquire privately-held exocad Global Holdings GmbH (exocad) for approximately EUR376 million in cash. Exocad is a global leader in the dental CAD/CAM software market.

Growth picked up again but then seemed to stall again after they digested this acquisition. I wouldn’t bet on this holding this price even though DCF valuation shows opportunity, P.E is still 30.9  and P/FCF 41.1. This is not the perfect profile for a private equity buyer but the $1.17 billion in cash on the balance sheet with the lack of long-term debt makes it attractive to be able to leverage the balance sheet.

 

Name: Chugg Juliana L
Position: Director
Transaction Date: 2022-05-11 Shares Bought: 2,000 Average Price Paid: $204.42 Cost: $408,844.00
Company: MicroStrategy Inc (MSTR)

Name: Lang Timothy Edwin
Position: SEVP & CTO
Transaction Date: 2022-05-11 Shares Bought: 2,500 Average Price Paid: $200.00 Cost: $500,000.00
Company: MicroStrategy Inc (MSTR)
MicroStrategy Incorporated is a software and services company that specializes in business analytics. MicroStrategy, an enterprise platform that provides insights to users across multiple devices through hyperintelligence products, visualization and reporting capabilities, mobility features, and custom applications developed on the platform; analysts and data scientists with seamless access to trusted, governed data directly within their tools; APIs and gateways, multiple deployment options, enterprise semantic graph MicroStrategy Support is another company offering that helps customers reach their system availability and uptime goals while also improving their overall experience by delivering exceptionally responsive troubleshooting and proactive technical product support. MicroStrategy Consulting, which offers architecture and implementation services to help businesses achieve faster results and higher returns on investment through data comprehension, and MicroStrategy Education, which offers both free and paid to learn options. The company’s services are delivered through an enterprise sales force and channel partners. Among the industries served are retail, consulting, technology, manufacturing, finance, banking, insurance, healthcare, education, telecommunications, and government. The company is situated in Tysons Corner, Virginia, and was founded in 1989.

Mr. Rechan has been a member of the Board of Directors since March 2018. Mr. Rechan established Rechan Consulting Group LLC, a CXO services firm, in February 2022 and has been its CEO ever since. Since February 2022, Mr. Rechan has also served as chief growth officer and board adviser at JASCI Software, a privately held next-generation warehouse management system firm. Mr. Rechan served as the senior vice president and general manager of Cadence Design Systems’ North American worldwide field operations from 2003 to 2004. He was president and chief operating officer of Onyx Software Corp. from 2001 to 2002. Before 2001, Mr. Rechan worked with IBM in a variety of capacities, including field sales, systems sales, and marketing.

Timothy Lang has been Senior Executive Vice President and Chief Technology Officer since November 2014, and he previously held the role of Senior Vice President, Analytics at MicroStrategy. Mr. Lang formerly worked for Talemetry Inc., a leading provider of talent generation SaaS solutions, as Chief Product Officer from September 2010 to September 2014, and for SAP SE as Vice President, Product from January 2008 to September 2010. Mr. Lang formerly worked with SAP BusinessObjects and Crystal Decisions. Mr. Lang graduated from Melbourne University with a B.Soc.Sci. in Information Management.

Opinion: Microstrategy is a bet on bitcoin valuation and nothing else. A foundering software business has leveraged its balance sheet to amass over $3 billion of bitcoin. The CEO, Michael Saylor is the leading evangelist for bitcoin. He is the keynote speaker at most bitcoin events. The company held 129,218 Bitcoins on its balance sheet at the end of March or about $4.1 billion at recent prices of $32,000 per coin. No other publicly traded U.S. operating company holds as much Bitcoin. The market cap of MSTR is less than the value of its bitcoin and If one could arbitrage the company, it would certainly be a sure bet but the reality is you can’t.

 

Name: Niblock Robert A
Position: Director
Transaction Date: 2022-05-06 Shares Bought: 2,000 Average Price Paid: $167.07 Cost: $334,145.00
Company: PNC Financial Services Group Inc (PNC)
PNC Financial Services Group, Inc. is a financial holding company that provides financial services. Retail Banking, Corporate & Institutional Banking, Asset Management Group, and BlackRock are the company’s segments. Customers in the Retail Banking division can utilize it for a deposit, lending, brokerage, investment management, and cash management. The Corporate & Institutional category includes financing, treasury management, and capital markets-related products and services for mid-to large-sized businesses, government, and not-for-profit organisations. Personal wealth management for high net worth and ultra high net worth clients, as well as institutional asset management, are included in the Asset Management Group section. The BlackRock division is a publicly traded investment management organisation that offers institutional and individual clients a variety of investment, risk management, and technology services.

Robert A. Niblock is the former Chairman, President, and Chief Executive Officer of Lowe’s Companies, Inc., a home improvement retailer that operates in the United States, Canada, and Mexico through its subsidiaries. Mr. Niblock held a variety of financial positions at Lowe’s during the course of his 25-year career, including Director of Taxation, Vice President and Treasurer, and Chief Financial Officer. Mr. Niblock previously worked for Ernst & Young for nine years before joining Lowe’s.

Opinion: Again this is another example of a regional bank betting on that the economy is fine and the rising interest rate environment will be a tailwind for its business.  For now I’m in the camp that that’s a good bet.

 

Name: Foehr Matthew W
Position: COO
Transaction Date: 2021-11-30 Shares Bought: 2,500 Average Price Paid: $82.76 Cost: $206,910.00
Company: Ligand Pharmaceuticals Inc (LGND)
Ligand Pharmaceuticals Incorporated (Ligand) is a biotechnology firm. The company’s primary focus is on developing or acquiring technology that assist pharmaceutical companies in discovering and developing new medicines. It has collaboration and licence agreements with over 140 pharmaceutical and biotechnology businesses, and 400 programmes are in various phases of commercialization, development, or research, all of which are wholly funded by its collaboration partners and licensees. OmniAb Technologies, Pelican Expression Technology Platform, Captisol Technology, HepDirect, LTP, BEPro Technology Platform, and SUREtechnology Platform are among the company’s technologies. The OmniAb platform produces and screens a variety of antibody pools in order to find the best antibodies. Pelican Expression Technology is a scalable recombinant protein production platform that is well suited for sophisticated, large-scale protein production. Captisol is a cyclodextrin that has been chemically modified to improve medication stability.

Matthew (Matt) W. Foehr is the Company’s President and Chief Operating Officer. Mr. Foehr had been our Executive Vice President and Chief Operating Officer since 2011 and had more than 20 years of experience overseeing worldwide research and development initiatives prior to that. Prior to joining our company in 2011, he was Vice President and Head of Consumer Dermatology R&D at GlaxoSmithKline’s Stiefel division, as well as Acting Chief Scientific Officer of Dermatology (GSK). Mr. Foehr was in charge of Stiefel’s R&D integration into GSK. Mr. Foehr was Senior Vice President of Global R&D Operations, Senior Vice President of Product Development & Support, and Vice President of Global Supply Chain Technical Services at Stiefel Laboratories, Inc.

Opinion: The best way to understand Ligand is to describe it as an actively managed biotech ETF. There is no way to value it other than the belief that the management has a good insight into the likelihood of the value of their numerous partnerships with leading and emerging biotech companies. Biotech is a very depressed sector with 20% of the biotech companies on NASDAQ trading for less than the cash on their books. Of course, these companies don’t for the most part generate cash and instead consume it.  When the COO of a company purchases just $209K of his own stock when its down 50% YTD, it looks more like window dressing than a backup the truck buy.

 

Name: Britto Mark
Position: EVP Chief Product Officer
Transaction Date: 2022-05-06 Shares Bought: 7,370 Average Price Paid: $81.04 Cost: $597,229.00
Company: PayPal Holdings Inc. (PYPL)
PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods such as checks and money orders. The company operates as a payment processor for online vendors, auction sites and many other commercial users, for which it charges a fee. The Company’s combined payment solutions, including its PayPal, PayPal Credit, Braintree, Venmo, Xoom, iZettle, and Hyperwallet products and services, comprise its Payments Platform. It operates a two-sided network that links its customers around the globe to facilitate the processing of payment transactions, allowing it to connect merchants and consumers. The Company allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds.

Mark Jorge Britto is the company’s Executive Vice President and Chief Product Officer. He was Executive Vice President of Global Sales and Credit from February 2019 to March 2020. Mr. Britto was the Senior Vice President of Global Credit and Markets at PayPal from July 2017 until his promotion to his present post. He was co-founder and CEO of Boku, Inc., the world’s largest independent carrier billing provider, from January 2009 until joining PayPal in 2017. Prior to joining Boku, Mr. Britto was the CEO of Ingenio, a service marketplace and performance advertising firm that he helped sell to AT&T in 2007. Following the acquisition of his first firm, Accept.com, in 1999, which served as the major backbone of Amazon’s global payments platform, Mr. Britto worked as Senior Vice President of Worldwide Services and Sales at Amazon for four years. Mark began his career with First USA and Bank of America, where he held senior credit and risk management positions. Mr. Britto is the non-executive Chairman of Boku, Inc. at the moment.

Opinion: The biggest hype and collapse of the last year has been Fintech. What exactly is PayPal’s perceived moat that could have ever justified its insane valuation of 91 Billion now much less its valuation of near $300 billion last year. With $11 billion of long-term liabilities t, Paypal still has a long way to drop in my opinion. Insiders here continue to try and find a bottom on this falling knife that every day resembles more like a bank at high-tech valuation. Bitcoin and many new innovative payment plans like Pay Now seem to make PayPal less unique and more like a traditional bank. I think I can safely say that FinTech was just another bubble in a long line of them. Well financed banks like JP Morgan, Goldman Sachs, and Bank of America all have picked up their game not to mention a slew of new fintechs.

 

Name: Vosseller Leigh
Position: CFO
Transaction Date: 2022-05-09 Shares Bought: 2,500 Average Price Paid: $74.61 Cost: $186,528
Company: Tandem Diabetes Care Inc (TNDM)

Name: Golumbeski George
Position: CEO
Transaction Date: 2022-05-09 Shares Bought: 2,500 Average Price Paid: $69.90 Cost: $174,750
Company: Tandem Diabetes Care Inc (TNDM)
Tandem Diabetes Care, Inc. is a medical device company that designs, develops, and sells solutions for people with insulin-dependent diabetes in the United States and around the world. The t:slim X2 insulin delivery system is the company’s flagship product, a pump platform that includes the t:slim X2 pump, a 300-unit disposable insulin cartridge, and an infusion set. It also offers insulin with Basal-IQ and Control-IQ technology, as well as t:slim X2 with G5 Integration and Tandem Device Updater, a program that allows patients to update the software on their pumps. t: connect, a web-based data management application for users, caregivers, and healthcare providers, provides a visual way to display diabetes therapy management data from the pump, continuous glucose monitoring, and supported blood glucose meters; and Sugarmate, a mobile app for people with diabetes who use insulin. Dexcom, Inc. and Abbott Laboratories have development and commercialization partnerships with it. Phluid Inc. was the previous name of the company, which changed to Tandem Diabetes Care, Inc. in January 2008.

Ms. Vosseller joined Tandem as vice president of finance in September 2013. Prior to that, she worked at Genoptix, Inc. (a Novartis company) as vice president and CFO starting in 2011, after joining the company in 2008. She formerly worked at Biosite Incorporated as a senior finance executive, where she was responsible for expanding the company’s financial and administrative infrastructure in preparation for international expansion. Ms. Vosseller possesses a bachelor’s degree in accounting from Missouri State University and is a certified public accountant (inactive).

The Company’s President, Chief Executive Officer, and Director is John F. Sheridan. Mr. Sheridan has been our President and Chief Executive Officer since March 2019 and has sat on our board of directors since June 2019. Since April 2013, Mr. Sheridan has served as our Executive Vice President and Chief Operating Officer. From March 2012 through February 2013, Mr. Sheridan was the Chief Operating Officer of Rapiscan Systems, Inc., a security equipment and systems provider. From November 2004 through March 2010, Mr. Sheridan was the Executive Vice President of Research & Development and Operations for Volcano Corporation, a medical technology business. Mr. Sheridan was Executive Vice President of Operations at CardioNet, Inc., a medical technology firm that is now known as BioTelemetry, Inc., from May 2002 until May 2004. (NASDAQ: BEAT). He was Vice President of Operations at Digirad Corporation, a medical imaging firm, from March 1998 to May 2002.

Opinion: Neither one of these purchases is large enough to be convincing considering the stock is trading at 50% of the price it started the year with. Valuation is still high but this is a great growth story and with new products coming online this year, there seems to be a real story here. According to Fly on the Wall, Citi analyst Joanne Wuensch lowered the firm’s price target on Tandem Diabetes to $155 from $163 and keeps a Buy rating on the shares. The company delivered Q4 revenue that was better than expected and it became one of the few companies this earnings season that guided 2022 revenue notably above consensus, Wuensch tells investors in a research note. I’ll probably sell puts on this name wth options below the current price with premiums at a high level  and purchase a little here and more on pullbacks.

 

Name: John C. Bumgarner, Jr.
Position: Director
Transaction Date: 2022-05-09 Shares Bought: 13,600 Average Price Paid: $73.13 Cost: $994,540.00
Company: Enviva Inc. (EVA)
Enviva is a global energy company that focuses in wood bioenergy that is environmentally beneficial. We’re the largest producer of sustainable wood pellets in the world, a renewable alternative to coal that’s part of an all-in renewables plan to reduce carbon emissions, reduce reliance on fossil fuels, and combat climate change. Enviva employs over 1,000 people worldwide, owns and operates nine wood pellet manufacturing plants strategically located throughout the Southeast, and ships our wood pellets to customers all over the world from five deep sea export terminals. Our facilities are strategically located in areas with a well-managed and growing forest inventory, a strong infrastructure, and knowledgeable local employees. In the United States, the United Kingdom, Germany, and Japan, we have offices.

Since April 2015, Mr. Bumgarner has served on the Board of Directors. Mr. Bumgarner has worked for a family-owned, multi-faceted real estate corporation since November 2002, and he is currently working in private investment. Mr. Bumgarner was Co-Chief Operating Officer and President of Strategic Investments for Williams Communications Group, Inc., a high-tech company, from May 2001 to November 2002. In 1977, Mr. Bumgarner joined The Williams Companies, Inc. Prior to joining Williams Communications Group, Inc., he served as Senior Vice President of Corporate Development and Planning, President of Williams International Company, and President of Williams Real Estate Company. Energy Partners, Ltd., an oil and natural gas exploration and production company, has him as a director.

Opinion: Revenues have grown sharply accompanied by growing losses, not a pretty picture. I’m not sure why the stock grew as sharply as it did earlier in the year.

 

Name: Schultz Howard D
Position: CEO
Transaction Date: 2022-05-10 Shares Bought: 137,500 Average Price Paid: $72.67 Cost: $9,991,685
Company: Starbucks Corp (SBUX)
Starbucks Corporation is a speciality coffee producer, marketer, and retailer. Americas, China/Asia Pacific (CAP), Europe, Middle East, and Africa (EMEA), and Channel Development are the company’s segments. Through company-oriented stores and licenced stores, the Americas, CAP, and EMEA segments provide coffee and other beverages, complementing foods, packaged coffees, single-serve coffee items, and a targeted selection of merchandise. Outside of its company-operated and licenced locations, the Channel Development division includes sales of packaged coffee, tea, and ready-to-drink beverages. Evolution Fresh, Teavana, Tazo Tea, and Seattle’s Best are among the company’s brands. On November 4, 1985, Jerry Baldwin and Howard D. Schultz created Starbucks, which is headquartered in Seattle, Washington.

Howard Schultz was an American businessman who was the CEO of Starbucks, a coffeehouse chain that he helped grow into a global brand. Schultz earned his bachelor’s degree in communications from Northern Michigan University in 1975. In 1982, he joined Starbucks as director of retail operations and marketing, and in 1985, he was named chairman. Schultz was inspired by a 1983 trip to Italy, where he realised that Milan alone had 1,500 coffeehouses, and envisioned rapidly expanding a small regional company into a nationwide coffeehouse network. In 1985, he launched Il Giornale, a coffee company that bought Starbucks in 1987 with the help of investors. Under Schultz’s leadership, the coffeehouse chain went from fewer than 20 locations to more than 100 in just four years. He went public with Starbucks in 1992, and by the end of the decade, the company had 2,500 outlets in approximately a dozen countries.

Opinion:  When China opens up again inevitably revenues and earnings will improve. A $10 million purchase by a multi-billionaire founder like Schultz is not big in the scheme of things but Howard doesn’t need any more stock, with over 20 million shares to his name. Insiders have perfect knowledge but not perfect motives. Is Howard painting the tape? Starbucks is trading at cheap a valuation on P.E and P/FCF as it has during the last five years.

 

Name: Adams Timothy M
Position: CFO
Transaction Date: 2022-05-09 Shares Bought: 5,000 Average Price Paid: $65.50 Cost: $327,516
Company: Rapid7 Inc (RPD)
Rapid7, Inc. specializes in cyber security. Customers can design and manage analytics-driven cyber security risk management programs using the company’s cloud-native insight platform. InsightIDR is an incident detection and response solution; InsightCloudSec is a solution that integrates posture management, workload protection, infrastructure entitlements management, infrastructure-as-code security, and Kubernetes protection; InsightVM is a vulnerability risk management solution that collects vulnerability data, prioritizes risk, and automates remediation; and InsightAppSec is an application security solution. It sells software licenses on a term or permanent basis, as well as cloud-based subscriptions and managed services.

Timothy M. Adams is the President, Treasurer, and Director of CQuotient LLC, as well as the Chief Financial & Accounting Officer of Rapid7, Inc. and the Chief Financial Officer of BitSight Technologies, Inc. Model N, Inc., The Murray State University Foundation, Inc., and Prevail Therapeutics, Inc. are all on his board of directors. Timothy M. Adams served as Chief Financial Officer, Treasurer, and SVP at Orthofix Medical, Inc., Treasurer for Athena Health, Inc., Chief Financial Officer of ObsEva SA, Senior Vice President-Corporate Strategy at Keystone Dental, Inc., Chief Financial Officer at Cytyc Corp., Chief Financial Officer of Demandware LLC, and Chief Investment Officer at Roche Diagnostics Hematology, Inc.

Opinion: Rapid 7 is a serial acquirer, having purchased 11 companies since 2015. It’s not likely they are an acquisition candidate as any strategic buyer would be pretty confused about what they would be acquiring. Mr. Adams joins Rapid7 on November 29th, 2021 from BitSight Technologies, where he has served as CFO since April 2020. It would be expected for him to buy stock in the new company and the recent collapse in price is good timing on his part.

 

Name: Ebel Gregory L
Position: Director
Transaction Date: 2022-05-06 Shares Bought: 15,600 Average Price Paid: $63.49 Cost: $990,502.00
Company: MOSAIC CO (MOS)
Mosaic Fertilizers is the world’s largest producer of combined phosphates and potassium. With the mission of helping the world produce the food it needs; it delivers about 27.2 million tons of fertilizer to 40 countries. In Brazil, it operates in the production, import, marketing, and distribution of fertilizers for application in various agricultural crops, in addition to the development of products for animal nutrition and the commercialization of industrial products. It has its own and contracted units in ten Brazilian states and Paraguay. The Mosaic Institute promotes social responsibility actions in the vast majority of the locations where it is installed. The company is also the controller of Felspar’s port terminal in Paranaque. Mosaic Fertilizers understands that the employee is the main point capable of bringing a competitive differential to the business and to customers. Professional development is stimulated through processes such as performance management, investment in education and training, as well as a broad program of compensation and benefits.

Mr. Ebel was the Chairman, President, and CEO of Spectra Energy from 2009 until February 27, 2017. He formerly worked as Chief Financial Officer for Spectra Energy and its predecessor businesses, President of Union Gas Limited from 2005 to 2007, and Vice President of Investor and Shareholder Relations for Duke Energy Corporation from 2002 to 2005. Mr. Ebel joined Duke Energy in 2002 as Managing Director of Mergers and Acquisitions in connection with Duke Energy’s acquisition of Westcoast Energy Inc. and Vice President of Strategic Development. Mr. Ebel is also a director and chairman of Enbridge, Inc. Mr. Ebel graduated from York University with a BA (Bachelor of Arts, Honours) and is a graduate of the Advanced Management Program.

Opinion: According to Statista, Russia is the 4th largest producer of fertilizer behind China which is far away the leader.  Then there is the U.S and India about the same quantity and Russia close behind them. We all know the sanctions on Russia and China has shut down it’s largest city and port, Shanghai, with its zero covid strategy. Business is obviously very good from both the revenue and the share price. Will it stay that way?  According to the company on May 2nd, “Global agriculture markets are reflecting the impact of the conflict between Russia and Ukraine. Together, these countries supply more than 25% of the world’s wheat and barley, 16% of corn, 24% of sunflowers, and more than 75% of global sunflower oil. The supply uncertainty created by the conflict continues to drive grain and oilseed prices higher, which were already elevated prior to the war as a result of the 20-year low in global stocks-to-use ratios. The conflict is also impacting fertilizer supply. Russia accounts for 20% of the world’s nitrogen, phosphate, and potash exports. When combined with Belarus, 40% of the global potash supply is at risk. Russian exports of all three nutrients have declined since the beginning of the conflict and sanctions against Belarus remain in place. In North America, Brazil and China, domestic crop prices continue to justify nutrient application to drive higher yields, despite the rise of input costs. In India, significant wheat export revenue and another favorable monsoon season are underpinning farmer demand for the coming season. Last week, India’s government increased importer subsidies for potash and phosphate fertilizers, a move that should help to provide India’s growers with access to key nutrients at time when demand is strong and domestic inventories are at historically low levels. For both potash and phosphates, supply chain constraints and impacts related to COVID are only just beginning to abate. Disappointing rail service in North America experienced during the first quarter has improved but is not expected to reach normal performance levels until the second half of 2022. In Brazil, road and port congestion is also slowing deliveries, though Mosaic continues to benefit from access to its own private ports, sufficient inventory volumes and in-country market positioning. These issues, combined with the current global supply and demand situation, point to persistent tight markets for both phosphates and potash.”

 

Name: Eitel Maria S
Position: Director
Transaction Date: 2022-05-09 Shares Bought: 15,000 Average Price Paid: $62.77 Cost: $941,607.00
Company: Cloudflare Inc (NET)
CloudFlare, Inc. is a cloud services provider that offers a variety of services to organisations all over the world. The company provides a cloud-based security solution that protects a variety of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices. Cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiter technologies are among its security offerings. Content delivery and intelligent routing, as well as content, mobile, and image optimization solutions, are among the company’s performance solutions. It also offers load balancing, anycast network, virtual backbone, DNS, DNS resolver, online, and virtual waiting room solutions, among other things. Cloudflare also provides internal infrastructure solutions, such as on-ramps, which link users, devices, or locations to the company’s network, and filters, which safeguard, examine, and privilege data.

Ms. Eitel has been a member of our Board of Directors since December 2018 and has led the pay committee since February 2019. Ms. Eitel was the Co-Chair of the Nike Foundation, a non-profit organization sponsored by NIKE, Inc., and the Chair of Girl Effect, an independent non-profit organization she formed with the objective of changing the lives of adolescent girls, from September 2015 until May 2021. From March 2005 to September 2015, she was the Founder, CEO, and President of the Nike Foundation. Ms. Eitel was the first Vice President, Corporate Responsibility of NIKE, a designer, developer, and supplier of athletic footwear, apparel, equipment, accessories, and services, from January 1998 to March 2005.

Opinion: Cloudfare has a great platform, has been growing like a weed and the management has been selling stock as fast as likely legally available to them. So it’s encouraging to see someone actually buy some shares and a million-dollar one at that. One of the crazy things about Wall Street analysts is that JP Morgan has underweight on it, in layman’s language a sell rating.  The analyst target price estimate is $144 by the end of the year. At the current price, I wouldn’t be surprised to see the analyst upgrade it to a buy as its revenue is growing sequentially and year over year at a 50% rate. Clearly NET has been spending heavily to maintain that growth rate. JP Morgan analyst projects that Cloudfare will earn $.20 in 2024.  That’s clearly not a number investors want to see in this new environment.  If Net can reduce expenses and bring more to the bottom line, that will put a big kick into the price. I’d love to take the plunge here with a great growth story but I need to see a tangible move toward earnings that doesn’t crater growth.

 

Name: Buffett Warren E
Position: 10% Owner
Transaction Date: 2022-05-10 Shares Bought: 901,774 Average Price Paid: $57.32 Cost: $51,690,341.00
Company: Occidental Petroleum Corp (OXY)
Occidental Petroleum Corporation is an energy company. The Company conducts oil and gas exploration and production activities in the United States, the Middle East and Africa. Within the United States, it has operations in Texas, New Mexico and Colorado, as well as offshore operations in the Gulf of Mexico. The Company’s business segments include Oil and Gas, chemicals, and Midstream and Marketing. The Oil and Gas segment explores, develops and produces oil and condensate, natural gas liquids (NGL), and natural gas. The Chemical segment manufactures and markets basic chemicals and vinyls. The Midstream and Marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, NGL, natural gas, carbon dioxide (CO2) and power. It also trades around its assets, including transportation and storage capacity, and invests in entities that conduct similar activities. The Midstream and Marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, NGL, natural gas, carbon dioxide (CO2) and power. It also trades around its assets, including transportation and storage capacity, and invests in entities that conduct similar activities.

Warren Buffett, full name Warren Edward Buffett, is an American businessman and philanthropist who was born on August 30, 1930, in Omaha, Nebraska, United States. He is widely regarded as the most successful investor of the twentieth and early twenty-first centuries, having defied prevailing investment trends to amass a personal fortune of more than $100 billion. Buffett, also known as the “Oracle of Omaha,” was the son of Nebraska Congressman Howard Homan Buffett. He studied with Benjamin Graham at the Columbia University School of Business after graduating from the University of Nebraska with a B.S. in 1950.

Opinion: Is Warren going to buy the whole company lock stock and barrel? It’s kinda looking like that.

 

Name: Mehlman Anne
Position: CFO
Transaction Date: 2022-05-09 Shares Bought: 2,600 Average Price Paid: $54.91 Cost: $142,766.00
Company: Crocs Inc (CROX)

Name: Hart Daniel P
Position: VP
Transaction Date: 2022-05-09 Shares Bought: 5,000 Average Price Paid: $52.63 Cost: $263,145.00
Company: Crocs Inc (CROX)
Crocs, Inc., is a Colorado maker of unique clogs that became extremely popular in the early 2000s with both men and women. The inexpensive shoes rely on a proprietary closed-cell resin material called Croslite to produce a lightweight, slip-resistant, odor-resistant, non-marking sole. The material also softens with body heat, thus molding the shoe to the foot of the wearer and providing a comfortable fit. Originally intended for use on boats and in other outdoor activities like hiking, fishing, and gardening, Crocs has also found a market with working people who spend a lot of time in their feet, such as health care and restaurant workers. Moreover, Crocs, generally considered an ugly shoe, has attracted the attention of celebrities, thereby making them fashionable. The shoe features a removable back strap available in 20 colors. In some circles, essentially younger girls, these straps are traded among wearers to provide a different look. Because of their broad appeal, Crocs are available through numerous distribution channels: traditional footwear retailers, sporting goods and outdoor retailers, department stores, uniform suppliers, specialty food retailers, gift shops, health and beauty stores, and catalogs.

Anne Mehlman became Executive Vice President and Chief Financial Officer of Crocs, Inc. in 2018, bringing with her more than 15 years of global financial and operational experience. From 2011 through 2016, Ms. Mehlman served as Vice President of Corporate Finance at Crocs, Inc. She worked as the CFO of Zappos.com, an eCommerce store owned by Amazon, after leaving Crocs in 2016. Ms. Mehlman was previously the Director of Finance of RSC Equipment Rental, which is now United Rentals. She also worked for Corporate Express (now Staples) and Lockheed Martin in various financial capacities. Joann, Inc., a Nasdaq-listed fabric and craft specialty retailer in the United States has Ms. Mehlman on its board of directors. She received her Bachelor’s degree from the University of Colorado at Colorado Springs.

Dan Hart joined Crocs in June 2009, serves as Executive Vice President and Chief Legal & Risk Officer, and is responsible for overseeing the company’s legal affairs and risk management program. Mr. Hart arrived at Crocs following his role as Senior Vice President and General Counsel at Océ North America, a division of Océ, N.V., a leading international manufacturing and engineering company, from 2006 to 2009. Prior to this role, Mr. Hart served as Senior Vice President of General Counsel and Human Resources for Invensys Controls from 2002 to 2006, a global manufacturing and engineering operation within Invensys plc, a public U.K. conglomerate. Mr. Hart’s experience also includes senior legal positions at Dictaphone Corporation, Brooke Group Ltd. and private legal practice in New York City.

Opinion: Crox has had considerable insider buying, and great results and yet the stock selling at a ridiculously low multiple has crumbled along with most retail stocks. The only explanation I can find is the market might be freaked out by the December 2021 $2.5 billion purchase of Hey Dude and the $2 billion of debt and stock issued for the purchase.   Fashion is fickle and the market was telling the company they needed to diversify away from the highly profitable and successful iconic Crocs brand but they viewed this transaction as risky- having paid too much. So far the early read is that the integration of it and business looks fine. Based on all the insider buying, I would tend to agree with it.

Crox could be a major winner from here- Piper Sandler analyst Erinn Murphy remains a buyer of Crocs shares following news of the company acquiring Hey Dude. The analyst says she’s been monitoring Hey Dude and says it is one of fastest rising brands she’s seen to date in Piper’s semi-annual survey of teens. Hey Dude is roughly the size of Crocs in the Americas back in 2018, ending 2021 at $570M, and its profitability is strong, Murphy tells investors in a research note. With Crocs shares down 15% today, the analyst sees an “opportune time to be accumulating the stock,” particularly following the “accretive deal” that could add over $1 per share in earnings in fiscal 2022. The shares are “mispriced this morning” as investors are unfamiliar with the Hey Dude brand, writes Murphy. She keeps an Overweight rating on Crocs with a $215 price target.

 

Name: Riley Bryant R
Position: CEO Chairman 10% Owner
Transaction Date: 2022-05-13 Shares Bought: 50,000 Average Price Paid: $48.30 Cost: $2,414,860.00

Transaction Date: 2022-05-09 Shares Bought: 75,000 Average Price Paid: $46.99 Cost: $3,523,990.00

Transaction Date: 2022-05-11 Shares Bought: 16,296 Average Price Paid: $45.70 Cost: $744,791.00
Company: B. Riley Financial Inc. (RILY)

Name: Kelleher Thomas J /ADV
Position: CEO
Transaction Date: 2022-05-11  Shares Bought: 5,000 Average Price Paid: $46.14 Cost:$230,684.00
Company: B. Riley Financial Inc. (RILY)
B. Riley Financial, Inc., through its subsidiaries, provides collaborative financial services and solutions in North America, Australia, and Europe. The Capital Markets segment offers a range of investment banking, corporate finance, consulting, financial advisory, research, securities lending, wealth management, and sales and trading services to corporate, institutional, and high net worth clients. This segment also provides merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; manages various private and public funds for institutional and individual investors; and trades in equity securities. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services. The Financial Consulting segment provides bankruptcy, financial advisory, forensic accounting, litigation support, real estate consulting, and valuation and appraisal services. The Principal Investments – United Online and magicJack segment provides consumer subscription services consisting of Internet access services and devices under the NetZero and Juno brands, as well as voice over IP cloud-based technology and communication services.

Bryant R. Riley has served as Chairman and Co-Chief Executive Officer of B. Riley Financial since June 2014 and July 2018, respectively, and as a director since August 2009. He also previously served as our Chief Executive Officer from June 2014 to July 2018. In addition, Riley served as the Chairman of B. Riley & Co., LLC since founding the stock brokerage firm in 1997 until its combination with FBR Capital Markets & Co., LLC in 2017; Chief Executive Officer of B. Riley & Co., LLC from 1997 to 2006; Chairman of B. Riley Principal Merger Corp. from April 2019 to February 2020, at which time it had completed its business combination with Alta Equipment Group, Inc.

Thomas J. Kelleher is the Company’s Co-Chief Executive Officer and Director. Mr. Kelleher has been a member of our board of directors since October 2015 and has served as our Co-Chief Executive Officer since July 2018. From August 2014 until July 2018, he also served as President. Mr. Kelleher formerly held the post of Chief Executive Officer of B. Riley & Co., LLC from 2006 until 2014. Mr. Kelleher held numerous top management positions with B. Riley & Co., LLC from its inception in 1997 to 2006, including Chief Financial Officer and Chief Compliance Officer. From October 2015 to June 2017, Mr. Kelleher sat on the board of directors of Special Diversified Opportunities Inc. Lehigh University awarded him a Bachelor of Science in Mechanical Engineering.

Opinion: Brokerage and investment bank stocks have been under pressure. Riley is no exception except for the overwhelming about of conviction management has in their stock price by buying millions of dollars of it. I think the play here is to bet with the house.

 

Name: Elashmawi Esam
Position: VP
Transaction Date: 2022-05-06 Shares Bought: 10,570 Average Price Paid: $46.95 Cost: $496,258.00
Company: Lattice Semiconductor Corp (LSCC)
Lattice Semiconductor Corp (Lattice) is a company that specialises in semiconductor technologies and services. PLDs, video connectivity, application specific standard products (ASSPs), and intellectual property are among the goods that the business designs, develops, and distributes. Lattice offers silicon-based architecture logic devices, as well as bridge and expansion FPGAs, connection, and acceleration ECP, as well as power and thermal management solutions. It also provides software tools, development kits, reference designs, and programming gear, among other things. Consumer, communications and computing, original equipment manufacturer, industrial, and automotive markets are all served by the corporation. The company has operations in Asia, Europe, and the United States. The company’s headquarters are in Hillsboro, Oregon.

Esam Elashmawi is the company’s Chief Marketing and Strategy Officer. Mr. Elashmawi brings to his new position a wealth of experience in sales, marketing, strategic planning, and general management. Prior to joining Lattice, Mr. Elashmawi worked at Microsemi Corporation as a Senior Vice President and General Manager, where he was responsible for the company’s FPGA, Storage, and Timing Solutions product lines. Esam Elashmawi comes to the job with 30 years of FPGA and industry expertise. He has managed and created solutions and equipment for the datacenter, automotive, defence, communications, and industrial markets during the last decade. Since 2010, he has been Senior Vice President and General Manager at Microsemi Corporation. Mr. Elashmawi formerly worked at Actel Corporation, which was bought by Microsemi in 2010. He co-founded SiliconExpert Technologies, a component management software company that was acquired by Arrow Electronics earlier in his career.

Opinion: We passed on this one as the CEO sold $5 million and there were many other insiders selling as well.  I really can’t read tea leaves or the motivation of this insider buy.

 

Name: Anthony April Kaye Bullock
Position: Director
Transaction Date: 2022-05-06 Shares Bought: 5,000 Average Price Paid: $40.85 Cost: $204,250.00
Company: First Financial Bankshares Inc (FFIN)
First Financial Bankshares, Inc. is a financial holding company. The Company, through its subsidiaries, conducts a full-service commercial banking business. Accepting and holding checking, savings, and time deposits, making loans, offering automated teller machines (ATMs), drive-in and night deposit services, safe deposit facilities, remote deposit capture, Internet banking, mobile banking, payroll cards, transmitting funds, and other banking services are all provided by its subsidiary bank, First Financial Bank, N.A. Through its trust company, First Financial Trust & Asset Management Company, N.A., it also performs trust and asset management services. Personal trust services, such as wealth management, estate administration, testamentary trusts, revocable and irrevocable trusts, and agency accounts, are all available through its trust company. Central, North Central, Southeast, and West Texas are the primary locations for its banking centers.

Ms. April K. Anthony, CPA, is an Independent Director at First Financial Bankshares, Inc. and a Chairman-Trustees Board at Abilene Christian University. First Financial Bankshares, Inc., Encompass Cares Foundation, First Financial Bank, NA (Abilene, Texas), First Technology Services, Inc., and Partnership for Quality Home Healthcare are all on her board of directors. Ms. Anthony previously worked for Advanced Homecare Management, Inc., Encompass Health Corp. as Chief Executive Officer-Home Health & Hospice, Encompass Home Health, Inc. as a Founder, Homecare Homebase LLC as Executive Chairman & Chief Executive Officer, Liberty Health Services, Inc. as a Chief Executive Officer, and Pricewaterhouse & Co. as a Principal. She was also a member of the board of directors for Exact Care Pharmacy LLC. Abilene Christian University was where she earned her bachelor’s degree.

Opinion: Familiar story, bank stock insiders buying their stock with a rising interest rate environment.

 

Name: Lorber David A
Position: CEO/Chairman
Transaction Date: 2022-05-11 Shares Bought: 16,000 Average Price Paid: $38.84 Cost: $621,450.00
Company: PhenixFIN Corp (PFX)
PhenixFIN Corporation is a business development company. The firm seeks to invest in small and middle-market companies’ privately negotiated debt and equity securities. Business services; buildings and real estate; automobile; oil and gas; aerospace and defence; healthcare, education, and childcare; personal, food, and miscellaneous services; retail stores, diversified or conglomerate manufacturing; telecommunications; mining, steel, iron, and non-precious metals; leisure, amusement, motion pictures, and entertainment; The fund attempts to invest in North American businesses. It exits investment ts between three and seven years; it maintains most of its investments until they mature or are repaid, but it may realize or sell some early. The fund might sit on the board of directors of its investee companies and provide management support to certain portfolio companies.

PhenixFIN Corporation is led by Mr. Lorber, who serves as Chairman and Chief Executive Officer. Since January 2007, Mr. Lorber has worked as a Portfolio Manager at FrontFour Capital Group LLC, an investment adviser. He is also a Co-Founder and Principal of FrontFour Capital Corp., an investment adviser, since January 2011. From 2003 until 2006, Mr. Lorber worked as a Senior Investment Analyst at Pirate Capital LLC. From 2001 to 2003, he worked as  an Analyst at Vantis Capital Management LLC and as an Associate at Cushman & Wakefield, Inc. from 2000 to 2001. Since May 2013, Mr. Lorber has been a director of Ferro Corporation, where he is the Lead Director, Chairman of the Governance & Nomination Committee, and a member of the Compensation Committee. Between April 2006 until December 2014.

Opinion: There are a few of these mezzanine lenders who are publicly traded. For the most part, they’ve been lackluster investments. Part of the challenge is valuing the portfolio. Obviously, the CEO must believe the value is there but that’s not good enough. Stock move on public perception, not management actions. CEO buying the stock can certainly improove the perception.

 

Name: Duckworth Connie K
Position: Director
Transaction Date: 2022-05-09 Shares Bought: 15,200 Average Price Paid: $38.37 Cost: $583,224.00
Company: MP Materials Corp (MP)
MP Materials Corp., formerly Fortress Value Acquisition Corp., is a producer of rare earth materials. The Company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility (Mountain Pass), which is a rare earth mining and processing site of scale in the Western Hemisphere. The Company is focused on producing Neodymium-Praseodymium (NdPr), Lanthanum, and cerium oxides and carbonates. NdPr magnets from the company are utilized in a variety of applications, including electric vehicles, drones, defense systems, medical equipment, wind turbines, robots, and more.

Steelcase Inc., the global leader in the office furniture market, has Connie K. Duckworth on its board of directors. Steelcase helps its customers have a better work experience by delivering products, services, and insights into how people work. Its broad range of offerings includes architecture, furniture, and technology items that promote social, economic, and environmental sustainability. Connie is a retired partner and managing director of Goldman, Sachs & Co., where she worked for 20 years and was the firm’s first female sales and trading partner. She is a director of MP Materials and a trustee of Equity Residential.

Opinion: MP is the only working rare earth mine in the U.S. The prior company went bankrupt but this itereation seems like it will be a success as the world gravitates to EV vehicles and all mather of advanced semiconductor. The stock has roundtripped to its

 

Name: Kahn Brian Randall
Position: CEO 10% Owner
Transaction Date: 2022-05-09 Shares Bought: 100,000 Average Price Paid: $37.50 Cost: $3,750,000.00
Company: Franchise Group Inc. (FRG)
Franchise Group Inc. is a franchised business owner and operator. Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy’s, and Sylvan are the company’s six segments. Vitamin Shoppe is an omnichannel specialty retailer that sells vitamins, minerals, herbs, speciality supplements, sports nutrition, and other health and wellness items. It sells over 700 brands, including The Vitamin Shoppe, BodyTech, True Athlete,  and others, in addition to its own. The Pet Supplies Plus division is a pet supply and service franchise and retailer. In a showroom format, the Badcock sector sells furniture, appliances, bedding, electronics, home office equipment, accessories, and seasonal items. It also provides a variety of flexible payment and credit options. In the United States and Canada, the Sylvan division is a franchisor of supplemental education for Pre-K-12 kids and their families.

Brian Randall Kahn is the founder of Kahn Capital Management LLC and Vintage Capital Management LLC, as well as President, Chief Executive Officer, and Director of Franchise Group, Inc., President & Chief Executive Officer of Franchise Group Intermediate Holdco LLC (a subsidiary of Franchise Group, Inc.), Managing Partner of Vintage Capital Management LLC, and Investment Manager of Vintage Albany Partners GP L. Vintage Albany Acquisition LLC, Vintage Albany Partners LP, and Caiman Capital GP LP all include him as a general partner.

Opinion: This is a large buy but it’s hard to get your head around a company with so many brands. We’re in an opportunity-rich environment and I’d like to find something easier to understand, and more focused. For example, I’d rather take a chance on Croc with its synergistic buy of Hey Dude versus the conglomeration of brands at Franchise Group.

 

Name: Barber Bradley W
Position: CEO
Transaction Date: 2022-05-02 Shares Bought: 5,000 Average Price Paid: $34.95 Cost: $174,750.00

Transaction Date: 2022-05-02 Shares Bought: 5,000 Average Price Paid: $33.75 Cost: $168,750.00
Company: H&E Equipment Services Inc (HEES)
H&E Equipment Services, Inc. is a full-service equipment provider. Equipment rentals, used equipment sales, new equipment sales, parts sales, and repair and maintenance services are among the company’s segments. The company’s equipment rentals division rents out its main construction and industrial equipment. The company’s used equipment sales section sells used equipment from its rental fleet as well as inventoried equipment. Its new equipment sales sector sells equipment through an in-house professional retail sales staff. Its parts sales division supplies parts to its own rental fleet and sells replacement components for the equipment it sells. It also keeps track of spare parts. Its repair and maintenance services business caters to both its own rental fleet and those of its clients. It offers preventative maintenance services on a regular basis. Transportation, haulage, and parts shipping are among the company’s ancillary equipment support activities.

Since November 2, 2012, Mr. Bradley W. Barber has served as President of H&E Equipment Services, Inc., and since June 3, 2008, he has also served as Chief Operating Officer. Mr. Barber worked at H&E Equipment Services, Inc. as Vice President of Rental Operations from February 2003 to November 2005, General Manager from November 2005 to May 2008, and Executive Vice President from November 2005 to November 2, 2012. From March 1998 through February 2003, he was the Director of Rental Operations at Head & Engquist Equipment, L.L.C. Mr. Barber previously worked for a regional equipment manufacturer in both outside sales and branch management.

Opinion: The massive Build Back Better infrastructure plan passed last year should provide a multi-year tailwind for the kind of equipment H&E provides. The CEO has been a steady buyer of his stock in the last couple of weeks providing us a high level of confidence that now is a reasonable time to buy.  We owned and traded this successfully in the past.  HEES is the 4th largest rental company and is a pure-play rental company.

 

Name: Soultz Bradley Lee
Position: CEO
Transaction Date: 2021-12-14 Shares Bought: 10,000 Average Price Paid: $33.33 Cost: $333,290
Company: WillScot Mobile Mini Holdings Corp. (WSC)
Now that WillScot and Mobile Mini have joined forces, they’re better equipped than ever to do what we do best – make life easier for customers. As North America’s leader in the innovative flexible workspace and portable storage solutions, They are the only provider on the continent that can deliver everything customers need. Space. Storage. Furnishings. Services. Everything. With one order from them, they’re Ready to Work. Every facet of their company is geared toward providing this value. Their strong team of service-focused experts. Their vast fleet of quality portable units. Their turnkey solutions with limitless add-on options. The expansive network lets them deliver anywhere fast. The whole company is built to serve customer needs. When customers call them, it’s the only call they need to make – because we’re the only company that can service their entire site. No other company in our industry has the resources, acumen or service commitment to fully deliver on this approach. They have combined the best of WillScot and Mobile Mini. The best practices. The best resources. They believe this will deliver the best results for their customers, and their shareholders.

Bradley Lee Soultz is the Company’s Chief Executive Officer and Director. He was president and CEO of WSII from January 2014 to November 2017, where he was responsible for the strategic and operational aspects of WSII’s North American operations as well as assisting the company prepare for its reemergence as a public company. Mr. Soultz was the chief marketing and strategy officer at Novelis Inc., the world leader in aluminium rolling and recycling, before joining WSII. After joining Novelis in 2005, he held executive positions in several Novelis business divisions in Europe and North America.

Opinion: The first order of business when analyzing insider buys is to try and understand what the buyer is seeing. In the case of WillScot Mobile Mini, I understand that there will be cost savings from the merger but I just don’t get the attractiveness of the investment.

 

Name: Golumbeski George
Position: Director
Transaction Date: 2022-05-06 Shares Bought: 8,000 Average Price Paid: $31.45 Cost: $251,563.00
Company: Sage Therapeutics Inc. (SAGE)
Sage Therapeutics Inc (Sage) is a clinical-stage biopharmaceutical business focused on the discovery, development, and marketing of medications for the treatment of CNS diseases. It creates medicines by selectively modulating NMDA and GABA synaptic and extrasynaptic receptors in the CNS. Zulresso (brexanolone), the company’s flagship medicine, is a patented intravenous (IV) formulation used to treat postpartum depression (PPD). Postpartum depression, major depressive disorders, bipolar depression, Parkinson’s disease, insomnia, epileptiform disorders, and NMDA hypofunction are among the indications for which the company has pipeline drugs. Through its subsidiaries, the corporation operates in the United States, Bermuda, Germany, Switzerland, England, and Wales. Sage is based in Cambridge, Massachusetts, in the United States.

Carrick’s Chairman, Dr. George Golumbeski, has over 25 years of experience in the biotechnology business. He is currently concentrating on the formation of new businesses. KSQ Therapeutics, Enanta Pharmaceuticals, MorphoSys, and Sage Therapeutics are among the biotechnology businesses on which he serves on the board of directors. Dr. Golumbeski was most recently the Executive Vice President of Business Development at Celgene, where he was in charge of building partnerships with innovative companies in order to bring breakthrough therapies to cancer and chronic inflammation patients.

Opinion: Insiders have shown conviction here but this is the most brutal biotech bear market as I’ve seen since 1993. With no end in sight, the only hope for most shareholders are takeovers from large pharmaceutical companies.

 

Name: Soultz Bradley Lee
Position: Director
Transaction Date: 2022-05-9 Shares Bought: 8,660 Average Price Paid: $28.91 Cost: $250,361
Company: Zurn Water Solutions Corp (ZWS)
Zurn Water Solutions Corporation, previously Rexnord Corporation, provides a variety of innovative water system solutions that safeguard human health and the environment. The business of the company is to design, procure, manufacture, and market devices that increase water quality, safety, flow management, and conservation. It has a presence in both the United States and Canada. Higher education, healthcare, retail, restaurant, hospitality, education, government, and fire protection are among the primary markets served by the company. Professional-grade water safety and control, flow systems, and hygienic and environmental goods for public and private areas are all part of the company’s product portfolio. Zurn, World Dryer, Hadrian Inc, and Just Manufacturing are some of the company’s brands. Its Zurn Business System (ZBS) enables it to increase customer happiness while also increasing shareholder value.

Mr. Butler, 58, is a former Executive Director, of Connected Vehicles at Ford Motor Company, a car manufacturer, designer, and servicer. He was in that position from 2014 to 2020, when he retired. Mr. Butler held different senior positions with General Motors Company, a car designer and manufacturer, from 1981 until 2013. Mr. Butler, 58, is a former Executive Director, of Connected Vehicles at Ford Motor Company, a car manufacturer, designer, and servicer. He was in that position from 2014 to 2020, when he retired. Mr. Butler worked for General Motors Company, a vehicle designer and manufacturer, from 1981 to 2013, in various leadership positions with increasing responsibility, including Vice President, Cadillac Marketing and Global Strategy, Chairman and Managing Director, General Motors Egypt, and Vice President, OnStar. Mr. Butler formerly served on the 5G Automotive Association and the SmartDeviceLink Consortium boards (chairman).

Opinion:

 

Name: Rutherford John R
Position: Director
Transaction Date: 2022-05-12 Shares Bought: 10,000 Average Price Paid: $25.74 Cost: $257,384.00
Company: Enterprise Products Partners L.P. (EPD)
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates 21 natural gas processing facilities in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, including a fleet of 310 tractor-trailer tank trucks used to transport liquefied petroleum gas. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related marketing activities; butane isomerization complex and related deisobutanizer units; and octane enhancement and high purity isobutylene production facilities.

Mr. Rutherford was elected as a director of Enterprise GP in January 2019 and is a member of its Audit and Conflicts Committee. He is a Senior Managing Director of NRI Energy Partners LLC. This firm evaluates and invests in private and public energy companies and provides financial and strategic consulting services to energy companies and investment firms. His career includes over 20 years of investment banking experience as mergers and acquisitions and strategic advisor to public and private energy companies, investment firms, management teams, and boards of directors. Before joining Plains, Mr. Rutherford served as Managing Director of the North American Energy Practice of Lazard Freres & Company from 2007 until 2010.

Opinion: MLPs have worked this year when most other strategies have not.  The desire to transition to a zero-carbon environment may be far more difficult than even the most pessimistic of critics have forecast.  EPD is one of the largest players in the hydrocarbon economy. With Europe moving away from Russian gas and oil, the U.S will play even a bigger role in supplying Europe’s needs.

 

Name: Hackett James T
Position: Director
Transaction Date: 2022-05-10 Shares Bought: 40,000 Average Price Paid: $25.55 Cost: $1,022,200.00
Company: Fluor Corp (FLR)
Fluor Corporation is a holding firm that specializes in engineering, procurement, construction, fabrication, and modularization, as well as operations, maintenance, asset integrity, and project management. Energy Solutions, Urban Solutions, and Mission Solutions are among its segments. Asset decarbonization, carbon capture, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources are among the solutions offered by the Energy Solutions section. Infrastructure, advanced technologies, life sciences, and mining and metals industries benefit from the Urban Solutions segment’s engineering, procurement, and construction (EPC) and project management services. The Mission Solutions category focuses on federal agencies and international prospects across the United States Government. Department of Energy (DOE), Department of Defense (DoD), Federal Emergency Management Agency (FEMA), and intelligence agencies are among them.

From 2001 to 2015, he served on the board as chair of the Organization and Compensation Committee and a member of the Executive and Commercial Strategies, as well as the Operational Risk Committees. Since 2013, I’ve been the President of Tessellation Services, LLC. Alta Mesa Resources, Inc.’s previous executive chairman (from 2018 to 2020) and interim chief executive officer (from 2018 to 2019) From 2018 to 2020, he was the CEO of Kingfisher Midstream, LLC. Since 2013, he has been a partner of Riverstone Holdings LLC, an energy-focused private investment firm. Anadarko Petroleum Corporation’s former executive chairman (from 2012 to 2013) and chief executive officer (from 2003 to 2012). Enterprise Products Holdings LLC, National Oilwell Varco, Inc., and NuScale Power Corporation all have Mr. Hackett on their board of directors.

Opinion: Fluor’s fortunes are tied to hydrocarbons and infrastructure.  Although the company is working on carbon capture and waste to energy, and other green initiatives, the bread, and butter come from fossil fuels. Fluor will be a direct beneficiary of any additional LNG infrastructure or nuclear power plant construction as well as large-scale infrastructure programs such as Build Back Better.

 

Name: MAKRIS George JR
Position: CEO/Chairman
Transaction Date: 2022-05-03 Shares Bought: 15,000 Average Price Paid: $24.03 Cost: $360,500
Company: Simmons First National Corp (SFNC)
In Pine Bluff, Arkansas, Simmons Bank opened its doors in 1903 with $3,338.22 in deposits on the first day. Simmons presently has a total asset value of $25.1 billion and employs over 2,800 employees across six states. Nonetheless, they are proud to be a community bank with the resources of a regional powerhouse. By investing in their friends and neighbors, Simmons Bank enables local leaders to make decisions at the local level. For over a century, they’ve worked hard to help their customers accomplish their dreams, whether it’s buying a home, starting a business, or simply having the freedom to manage their money safely and securely from anywhere. Throughout their history, they’ve had the privilege of working with a variety of financial institutions that share Simmons Bank’s traits, such as a long history of great customer service and a commitment to the communities in which they live. This growth has increased their ability to provide innovative and high-quality financial products and services to their customers.

Chairman of the Board and Chief Executive Officer of the Company, George A. Makris Jr., is the Chairman of the Board and Chief Executive Officer of the Company. He is currently the Company’s chairman and chief executive officer. Mr. Makris had been engaged by M. K. Distributors, Inc. since 1980 and had served as its President from 1985 before joining the Company on January 2, 2013. From 1985 through 1996, Mr. Makris served on the board of directors of the National Bank of Commerce and its successors, including as Chairman of the Board from 1994 to 1996. Mr. Makris earned a B.A. in Business Administration from Rhodes College in 1978 and an M.B.A. from the University of Arkansas in 1980. Mr. Makris also serves as an advisory member on the boards of directors of The Economic Development Corporation of Jefferson County, Arkansas, and the board of trustees of Jefferson Regional Medical Center.

Opinion: Is it a coincidence that many regional bank insiders are buying their stock now?  The performance has been terrible but the forecast seems to be improving with a rising rate environment.

 

Name: Agwunobi John O
Position: CEO/Chairman
Transaction Date: 2022-05-10 Shares Bought: 4,222 Average Price Paid: $23.55 Cost: $99,434.00
Company: Herbalife Nutrition Ltd (HLF)

Name: Michael O. Johnson
Position: Director
Transaction Date: 2022-05-10 Shares Bought: 5,840 Average Price Paid: $22.85 Cost: $133,444.00
Company: Herbalife Nutrition Ltd (HLF)

Name: Mulligan Donal L
Position: Director
Transaction Date: 2022-05-11 Shares Bought: 15,000 Average Price Paid: $22.69 Cost: $340,350.00
Company: Herbalife Nutrition Ltd (HLF)

Name: DeSimone John
Position: President
Transaction Date: 2022-05-11 Shares Bought: 43,478 Average Price Paid: $21.54 Cost: $936,516.00
Company: Herbalife Nutrition Ltd (HLF)
North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the rest of Asia Pacific are all served by Herbalife Nutrition Ltd. Weight control, targeted nutrition, energy, sports and fitness, and outside nutrition are all areas where the company offers goods. It sells weight management products like meal replacement shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products like functional beverages and dietary and nutritional supplements with herbs, vitamins, minerals, and other natural ingredients; outer nutrition products like skin, body, and hair care; and energy, sports, and fitness products like N-R-G tea and energy d. Start-up kits, sales tools, and educational resources are among the company’s literature, promotional, and other products. It sells its products through independent service providers and sales reps as well as company-run retail outlets.

Dr. John Agwunobi, M.D., M.B.A., M.P.H., has a distinguished career as a physician, a public health officer, and a global executive at Herbalife Nutrition. He was chosen Co-President of the company after nearly four years as Chief Health and Nutrition Officer. Dr. Agwunobi was named C.E.O. in March 2020 and Chairman of the Board of Directors in April 2020. Dr. Agwunobi has a diverse background in both the public and private sectors. He was most recently the Assistant Secretary of Health for the United States Department of Health and Human Services from 2005 to 2007. He was in charge of illness prevention and health promotion during his tenure. He was in charge of the C.D.C., the National Institutes of Health, the Food and Drug Administration, and the Office of Personnel Management.

Johnson became the CEO of Herbalife Nutrition in 2003 and the Chairman in 2007. In an interview with Fortune Magazine, he emphasized the necessity of pivoting the Herbalife brand away from weight-loss goods and the broader views associated with multilevel marketing, saying, “It’s now a nutrition firm that distributes through multilevel marketing.” Johnson achieved this by instituting quality controls, bringing Herbalife’s product manufacturing in-house, and expanding the company’s product offerings. To emphasize Herbalife’s new focus on total health and nutrition, Johnson boosted his sports sponsorships to include more than 200 teams and athletes, including Cristiano Ronaldo.

Don Mulligan has extensive experience as a Fortune 200 CFO and board member of public companies. He has extensive experience in Asia and Latin America, as well as strong relationships with institutional investors and analysts. Mr. Mulligan has extensive experience in global expansion, talent development, capital structure evolution, risk management, business restructuring, investment oversight, mergers and acquisitions, corporate social responsibility, financial skills, and shareholder insights. Mr. Mulligan was previously the Executive Vice President and Chief Financial Officer of General Mills. He joined General Mills in 2001 as Vice President of Financial Operations for the International division, Vice President of Financial Operations for Operations and Technology, and Vice President and Treasurer.

John DeSimone, president of Herbalife Nutrition, is committed to the company’s vision and value of encouraging individuals to live better, more active lives via personalized nutrition and a business opportunity. DeSimone oversees the company’s regional leadership, which is responsible for growing the company’s premier nutrition business and ensuring success in 95 regions throughout the world. DeSimone is also in charge of all global distributor-facing responsibilities, such as marketing, promotions, sponsorships, business technique assistance, events, and independent distributor connections.

Opinion: I just can’t buy this MLM company although clearly insiders are salivating over the price drop.

 

Name: Bilbrey John P
Position: Director
Transaction Date: 2022-05-11 Shares Bought: 10,000 Average Price Paid: $22.03 Cost: $220,284.00
Company: Elanco Animal Health Inc. (ELAN)
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as functional nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands.

John P. Bilbrey is a successful businessman who has led five separate firms. Mr. Bilbrey owns Bilbrey Farm & Ranch LLC and serves on the boards of five additional businesses. He was previously Non-Executive Chairman of The Hershey Co. and President & Senior Vice President of Hershey’s International, Inc. (a Hershey Co. subsidiary), Category Manager of Procter & Gamble Co., President & Chief Executive Officer of Danone Waters of North America, Inc., Chief Executive Officer of Del Monte Foods Co., Executive Vice President-Sales at Mission Foods Corp., and Chairman of the Grocery Manufacturers Association.

Opinion: Elan has been a perennial disappointment although it seems that they should be doing well in a recession-resistant business.  Insiders continue to buy the business in spite of disappointing financial results.  Why? Is there a potential acquirer in the wings?

Oct 26, 2021, In slides being presented at the 2021 Active-Passive Investor Summit, Starboard Value says it thinks Elanco (ELAN) could be worth $91 a share and has a similar opportunity to Zoetis (ZTS). Starboard believes shareholders have been “bewildered” by the lack of adjusted EBITDA margin improvement despite purported significant productivity improvements. Starboard believes a substantial value creation opportunity exists at Elanco.

 

Name: Garcia Ken V
Position: Director
Transaction Date: 2022-05-11 Shares Bought: 26,330 Average Price Paid: $17.81 Cost: $469,021
Company: TimkenSteel Corp (TMST)
TimkenSteel Corp is American alloy steel, carbon steel, and micro-alloy steel company. TimkenSteel offers special bar quality steel, seamless mechanical tubes, and value-added products including precision steel components. The firm also offers machining and thermal treatment services, as well as overseeing raw material recycling processes that serve as feeders for its melt operations. Oil and gas, automotive, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agricultural, and power generation all employ the company’s goods and services. Customers are largely served in the United States by the corporation.

Kenneth V. Garcia created Lender Performance Group LLC and Halo Technologies, Inc. He is the President of PureLux, Inc. at the moment. Mr. Garcia also serves on the boards of McKim & Creed, Inc., and TimkenSteel Corp. He formerly worked for Halo Technologies, Inc. as Chairman, Lender Performance Group LLC as President and Director, Nalco Wastewater Contract Operations, Inc. as Chief Financial Officer and General Counsel, and Ecovations, Inc. as Chief Financial Officer and General Counsel.

Opinion:  Timken Steel’s recent pullback presented a great opportunity for deft traders. Unfortunately, the fast money has already been made as the stock is up 11% from Director Garcia’s purchase last week.

 

Name: Hallett James P
Position: Chairman
Transaction Date: 2022-05-11 Shares Bought: 100,000 Average Price Paid: $13.15 Cost: $1,315,000.00
Company: KAR Auction Services Inc (KAR)

Name: Howell J Mark
Position: Director
Transaction Date: 2022-05-11 Shares Bought: 15,300 Average Price Paid: $13.00 Cost: $198,900.00
Company: KAR Auction Services Inc (KAR)
Used vehicle auctions and related vehicle remarketing services are provided by KAR Auction Services, Inc. and its subsidiaries in the automotive sector in the United States, Europe, Canada, Mexico, and the United Kingdom. The organization’s two business sectors are ADESA Auctions and AFC. Through online auctions and auction facilities, the ADESA Auctions sector provides complete automobile auctions and related services to the auto remarketing industry. It also provides value-added services such as auction support, transportation, reconditioning, inspection, title, repossession administration, remarketing automobile research, analytical services, and data. Firms that sell this segment’s products and services include vehicle manufacturers, fleet companies, rental automobile companies, finance companies, and others. As of December 31, 2021, this industry employed roughly 1 million people. The business is split into two sections. As of December 31, 2021, this category had roughly 70 automotive logistics center locations in North America. The AFC division sells car service contracts and offers independent used vehicle dealers floorplan financing, which is a short-term inventory-secured loan. Wheel repair and hail catastrophe response are two of the company’s specialties.

Jim Hallett has worked in the automobile sector for almost 40 years. Hallett, who also serves as Chairman of the Board of Directors, advises the company on strategic, customer, and investor relations issues. Hallett, a native of Canada, joined the company in 1993 as president of ADESA Canada before moving to Indianapolis in 1996 to become president and CEO of ADESA. In 2007, he was appointed CEO of KAR, then Chairman in 2009, and finally Executive Chairman in 2021. KAR went public in 2009 with Hallett at the helm. OPENLANE, BacklotCars, TradeRev, DRIVIN, and CarsOnTheWeb are just a few of the firms and key assets that KAR has purchased since then (now ADESA Europe). Hallett has successfully steered KAR to lead the digital transformation of the auto auction industry while pioneering the use of big data to help customers optimize their auction strategies. He is the architect behind the company’s many strategic investments and acquisitions to better serve customers.

Since January 2018, Mark Howell has served as President and Chief Executive Officer of Conexus Indiana, Indiana’s advanced manufacturing and logistics program, which Central Indiana Corporate Partnership, Inc support. I was the Chief Operating Officer of Angie’s List, Inc., a local and national services customer review website and marketplace, from March 2013 until September 2017. In 2017, Angie’s List, Inc. was purchased and merged with ANGI Homeservices Inc. He was President of Ingram Micro North America Mobility, a technology distribution company, from 2012 to 2013. He was President of BrightPoint Americas, a distributor of mobile devices for phone companies, from 1994 to 2012. He was also Chief Financial Officer, Executive Vice President, and Chief Operating Officer. BrightPoint, Inc. was purchased by Ingram Micro Inc. in 2012. Vice President and Corporate Controller at ADESA since August.

Opinion: This looks like a good opportunity here to buy KAR. On May 10th KAR Auction Services successfully completed its sale of the ADESA U.S. physical auction business to Carvana. . Additional details on the company’s strategy and projections will be covered in KAR’s analyst day update call, which it anticipates will take place in June. The final dates and time for the call will be announced publicly and published on the investor relations section of karglobal.com.

 

Name: Singer Bradley E
Position: Director
Transaction Date: 2022-05-09 Shares Bought: 50,000 Average Price Paid: $11.20 Cost: $560,105.00
Company: Redfin Corp (RDFN)

Name: Lissy David H
Position: Director
Transaction Date: 2022-05-10 Shares Bought: 50,000 Average Price Paid: $9.88 Cost: $494,161.00
Company: Redfin Corp (RDFN)
Redfin is a real estate search and brokerage service provider that uses a combination of real estate web platforms that agents can use. It represents people who are buying and selling homes, and it includes all broker-listed and for-sale-by-owner properties. Its real estate agents collaborate with the company’s engineering team to develop technologies that simplify the buying and selling process. Redfin’s website combines MLS listing data with historical data to create a single map. Customers can search for houses by area, city, zip code, MLS number, or school zone, and narrow their results using specific characteristics such as price and number of beds and baths.

Since March 2022, Brad Singer, 55, has been one of the directors. Mr. Singer worked at ValueAct Capital as the chief operating officer from May 2012 to December 2021 and as a partner from May 2012 to June 2021. Mr. Singer previously served as Discovery Communications’ senior executive vice president and chief financial officer, as well as American Tower’s chief financial officer and treasurer. Mr. Singer presently serves on the board of directors of another public firm, Sweetgreen, and previously served on the board of directors of Rolls-Royce. Mr. Singer graduated from the University of Virginia with a bachelor’s degree and Harvard Business School with an MBA. Mr. Singer’s background as a venture capital investor and senior finance professional, including as the chief financial officer of a large publicly traded firm, we feel qualifies him to serve on our board of directors.

The current Chair of the Board is Mr. Lissy. From January 2018 until December 2019, he served as the Company’s Executive Chairman, and he has been a director since 2001. Mr. Lissy was the Company’s Chief Executive Officer from January 2002 to January 2018. From 1998 to January 2002, he was the Company’s Chief Development Officer, and from June 2000 to January 2002, he was Executive Vice President. He joined Bright Horizons in August 1997 as Vice President of Development and remained there until the July 1998 merger with CorporateFamily Solutions, Inc. Mr. Lissy formerly worked at Aetna U.S., Healthcare in the New England region as a senior vice president/general manager. Mr. Lissy has been on the board of directors of Redfin Corporation (Nasdaq: RDFN) since 2018 and as its Chair since 2020. He also serves on the boards of BeneLynk, Inc. and other private enterprises.

Opinion: I was going to completely discount the new purchase from Director Singer as the price of getting put on the Board but then Chairman of the Board Lissy purchased $500k worth of the depressed stock, I had to dig a little deeper. Redfin agents earn a little less during real estate transactions. Other than that I don’t see the economic moat and their financial results haven’t demonstrated one. Redfin’s revenues have grown steadily and with it, its losses.

 

Name: Bradley David A.
Position: Director
Transaction Date: 2022-05-10 Shares Bought: 20,000 Average Price Paid: $9.73 Cost: $194,516.00
Company: Ecovyst Inc. (ECVT)
Ecovyst Inc. manufactures and sells specialty catalysts in the United States, the Netherlands, the United Kingdom, and other countries. Ecoservices and Catalyst Technologies are the company’s two segments. Sulfuric acid recycling services for the manufacturing of alkylate for refineries are provided by the Ecoservices sector, as well as virgin sulfuric acid for mining, water treatment, and industrial applications. Catalyst Technologies provides polyethylene and methyl methacrylate producers and licensors with tailored catalyst products and process solutions. Its catalyst helps to make polymers for packaging films, bottles, containers, and other molded applications. This business sector also sells zeolite-based pollution control catalysts, which remove nitrogen oxides from diesel engine emissions and sulphur dioxide from fuels during the refining process. PQ Group Holdings Inc. was the company’s previous name until August 2021, when it changed to Ecovyst Inc. Ecovyst Inc. is based in Malvern, Pennsylvania, and was formed in 1831.

David A. Bradley is a businessman who has served as President and Chief Executive Officer of SI Group, Inc. and Chief Executive Officer of Schenectady International Group, Inc. (a subsidiary of SI Group, Inc.), Chairman of Nexeo Plaschem (Shanghai) Co., Ltd., President, Chief Executive Officer, and Director of Chemical Specialists & Development LLC, and President & Chief Executive Officer of Nexeo Solutions. Nexeo Solutions Plastics UK Ltd. and Ecovyst, Inc. are also on his board of directors.

Opinion: Small buy in a tough industry. We are not swinging our bat at this one.

 

Name: Anton Arthur F
Position: Director
Transaction Date: 2022-05-12 Shares Bought: 100,000 Average Price Paid: $2.93 Cost: $293,240.00
Company: Diebold Nixdorf Inc (DBD)
Diebold Nixdorf, Incorporated is a connected commerce services provider. Banking and retail are two of the company’s segments. Financial institutions of all sizes can benefit from the banking segment’s integrated solutions. Cash recyclers and dispensers, intelligent deposit terminals, teller automation, and kiosk technologies are all part of the Banking product portfolio. The Retail segment’s product portfolio comprises modular and integrated all-in-one point of sale (POS) and self-service terminals that suit evolving consumer shopping journeys as well as the automation needs of merchants and store workers. The Company’s self-checkout (SCO) solutions and ordering kiosks make transactions more fluid and efficient. The company’s DN Vynamic software for retailers offers a modular and open solution that ranges from in-store check-out to multi-channel solutions.

From 2017 until his resignation on December 31, 2019, Arthur Anton served as Chairman of the Board and Chief Executive Officer of the Swagelok Company. Mr. Anton was President and Chief Executive Officer of Swagelok from 2004 to 2017, as well as President and Chief Operating Officer from 2001 to 2004, Executive Vice President from 2000 to 2001, and Chief Financial Officer from 1998 to 2000. Before joining Swagelok in 1998, Mr. Anton worked for Ernst & Young. Art is now a member of the Sherwin-Williams Company, Olympic Steel (Lead Director), Diebold Nixdorf, Sun Coke Energy, and the Union Home Mortgage Advisory Board (Chair). In 2018, he was appointed to the Board of Directors of the Rock and Roll Hall of Fame, where he oversees the Finance Committee.

Opinion: Diebold Nixdorf is challenged by a changing financial environment but the destruction of wealth and the lack of vision is extraordinary.  One can always make money at some price but clearly the real money has been made betting against the company. With a Debt to  Capital ratio of 175. I don’t see a way out of the terrible dilemma management has put the shareholders in.

 

Name: Chacko Jacob
Position: CEO
Transaction Date: 2022-05-11 Shares Bought: 450,000 Average Price Paid: $2.86 Cost: $1,288,597.00
Company: Oric Pharmaceuticals Inc. (ORIC)
Overcoming Resistance In Cancer is the mission of ORIC Pharmaceuticals, a clinical-stage biopharmaceutical firm dedicated to improving patients’ lives. ORIC-101, the company’s flagship product candidate, is a strong and specific small molecule antagonist of the glucocorticoid receptor, which has been related to resistance to many types of cancer therapies in a variety of solid tumors. ORIC-533, ORIC’s second product candidate, is an orally accessible small molecule inhibitor of CD73, a critical node in the adenosine pathway thought to be involved in resistance to chemotherapy and immunotherapy. Aside from these two product candidates, ORIC is working on a number of precision medicines that target other common cancer resistance mechanisms. Charles Sawyers, MD, and Scott Lowe, PhD, ORIC’s scientific creators, have a long track record of discovering novel cancer targets that have led to breakthrough treatments.

Dr. Chacko was most recently CFO of Ignyta, a NASDAQ-listed precision oncology company acquired by Roche in February 2018. He had a broad operational role at Ignyta. During his time in office. Dr. Chacko was an investor at TPG Capital before joining Ignyta. He was a board observer for Par Pharmaceutical, IMS Health, and Quintiles Transnational and served on the boards of directors of RentPath and EnvisionRx. He previously served on the Packard Children’s Health Alliance board of directors at Stanford’s Lucile Packard Children’s Hospital. He presently serves on the boards of directors of Bonti and AROG Pharmaceuticals, as well as chairing the Marshall Scholarship Western Regional Selection Committee.

Opinion: Chacko has been CEO since 2018 so he certainly knows what he is dealing with.  The company is trading for less than half of its cash on hand which equates to $6 per share, Cash, cash equivalents, and investments totaled $256.2 million as of March 31, 2022, which the company expects will fund its current operating plan into the second half of 2024. They will certainly need it as they are a very early state development company.

 

Name: Prange Karen
Position: Director
Transaction Date: 2022-05-10 Shares Bought: 37,600 Average Price Paid: $2.66 Cost: $100,002
Company: ViewRay Inc (VRAY)

Name: Stassen Zachary William
Position: CFO
Transaction Date: 2022-05-10 Shares Bought: 120,000 Average Price Paid: $2.65 Cost: $318,250
Company: ViewRay Inc (VRAY)

Name: Moore Daniel Jeffrey
Position: Director
Transaction Date: 2022-05-10 Shares Bought: 96,358 Average Price Paid: $2.59 Cost: $250,001
Company: ViewRay Inc (VRAY)

Name: Drake Scott William
Position: CEO
Transaction Date: 2022-05-10 Shares Bought: 157,012 Average Price Paid: $2.55 Cost: $399,994
Company: ViewRay Inc (VRAY)
ViewRay develops advanced radiation therapy technology for the treatment of cancer. It designs, manufactures, and markets MRIdian, an MRI-guided radiation therapy system that can image and treat cancer patients simultaneously. Because it combines MRI technology, radiation delivery, and proprietary software to find, target, and track the position and shape of soft-tissue tumours while radiation is delivered, MRIdian tackles significant limitations of existing external-beam radiation therapy systems. During radiation treatment, real-time MRI imaging clearly separates the targeted tumour from surrounding soft tissue and other important organs, allowing the device to precisely deliver radiation to the tumour while sparing healthy tissue. Because to MRIdian’s higher target accuracy, improved tumour visualization, and precise dosage recording, clinicians can now treat patients who would not have been deemed radiation treatment candidates previously.

Ms. Prange has more than 25 years of experience as a healthcare executive and thinker. Since December 2019, Ms. Prange has been on the board of directors of Atricure, a medical device firm. Since March 2020, Ms. Prange has been a member of the WS Audiology board of directors. Since September 2019, she has worked as a Strategic Advisor for Nuvo Group, LLC, a medical device company, and as an Industrial Advisor for EQT Group, a worldwide investment firm, since March 2020. From October 2019 to June 2021, she was on the board of directors of Cantel Medical, a medical equipment firm. Ms. Prange was Executive Vice President and Chief Executive Officer of Henry Schein’s Global Animal Health, Medical, and Dental Surgical Group, as well as a member of the Executive Committee, from May 2016 until April 2018.

Zach has worked in the medical device and healthcare industries for over 20 years. He was previously the CFO and COO of Bolder Surgical, a cutting-edge, privately held medical technology firm. Prior to joining Bolder Surgical, Zach worked at Spectranetics in numerous business development roles, including Vice President of Finance, before the company was acquired by Royal Philips. He previously co-founded a device startup that Cardinal Health purchased. Zach has also worked for Piper Jaffray as a healthcare investment banker. He graduated from Drake University with a bachelor’s degree and an MBA from Northwestern University’s Kellogg School of Management.

Daniel Jeffrey Moore is an American businessman who has led eight separate businesses. Mr. Moore is currently Chairman of ViewRay, Inc. and LivaNova Plc’s Non-Executive Chairman. Mr. Moore also serves on the boards of BrainScope Co., Inc. (where he formerly served as Chairman), Purdue University, the Epilepsy Foundation, and BioHouston, Inc. Mr. Moore has previously served as Non-Executive Chairman of GI Dynamics, Inc., Director of The Medical Device Manufacturers Association, President of InterContinental Logistics Ltd., President & Director of Epilepsy Foundation of Texas Houston, Principal at Procter & Gamble Co., President-International Distributor Management at Boston Scientific Corp., and President, Chief Executive Officer & Director of LivaNova USA, Inc.

Scott William Drake, the founder of Bolder Surgical LLC, is a businessman who has led five companies and is currently President, Chief Executive Officer, and Director of ViewRay, Inc. and Chief Executive Officer of AngioScore, Inc. Mr. Drake also serves on the boards of Paragon 28, Inc. and The Medical Device Manufacturers Association, and is the Chairman of the Advanced Medical Technology Association’s Radiation Therapy Sector. Scott William Drake has held the positions of Chairman of AtriCure, Inc., Senior Vice President-Operations of DaVita, Inc., President, Chief Executive Officer, and Director of The Spectranetics Corp., President of Valleylab, Inc., Vice President & General Manager of Critical Care, Inc., and President-Global Business Unit of Covidien Ltd. in the past.

Opinion: Lots of confidence here and a huge bounce in the stock price since the purchases of nearly 23%. It seems likely that the company will eventually get to profitability but this is not the kind of company that does well in this environment. The easy money has been made in my opinion.

 

---

 

Follow us on Twitter for real-time insider buying alerts at https://twitter.com/theinsidersfund

Insiders sell the stock for many reasons, but they generally buy for just one – to make money. You’ve always heard the best information is inside information.  Everyone who has any experience at all in the stock market pays close attention to what insiders are doing.  After all, who knows a business better than the people running it?  Officers, directors, and 10% owners are required to inform the public through a Form 4 Filing any transaction, buy, sell, exercise, or any other within 48 hours of doing so. This info is available for free from the SEC’s Web site, Edgar, although we subscribe to SECForm4  as they provide a way to manage and make sense of the vast realms of data. I’ve tried a lot of vendors. SECForm4 is one of the smaller ones but I like supporting Frank. He is not arrogant. He’s helpful and has great prices. He also trades on his own data so I like people that eat what they kill.

We publish a subscription newsletter called The Insiders Report.  We offer a free 30-day trial so you have nothing to lose by trying it out. Be sure to carefully read the TERMS OF SERVICE.

Another source for insider buying and selling and much more is FinViz Elite. FinViz stands for financial visualization and they do an amazing job of providing reams of data and the tools to help you get to the bottom of it, the information that helps me make informed decisions and probable outcomes. I’ve been using their site for years and it only gets better over time.

This is as close to “insider information” that an ordinary investor is likely to see- and it’s entirely legal. 

BEWARE– Following insiders can be hazardous to your financial health. It’s just one piece of the investor’s due diligence. The Insiders Fund blog informs you of the purchases that count.  As a rule, we only look at material amounts of money 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 and options. 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. Unfortunately, the public information disclosure requirements about these programs referred to as Rule 10b5-1 is horrendously poor. Also planned sales that just pop up out of nowhere are basically sales and are seeking cover under the Sarbanes Oxley corporate welfare clause. I also generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and perhaps not the smart money we are trying to read the tea leaves on.

Of course, insiders can also be wrong about their Company’s prospects. Don’t let anyone fool you into believing they never make mistakes.  Do your own analysis. They can easily be wrong about, and in many cases, maybe most cases have no more idea what the future may hold than you or me. In short, you can lose money following them.  We have and we curse aloud, what were they thinking!

We like Fly on the Wall for keeping up with what events might be happening, analysts’ comments, and whatever else could be moving the stock.  Dow Jones news service is an essential tool but many services pick up their feed like they do Bloomberg. For quick financial analysis, it’s hard to beat Old School Value.

No one tracks and understands insider behavior better than us. We’ve been doing it religiously since 2001 when I quit being an insider myself and devoted myself full time to managing my personal investments. Needless to say, past good fortune is no guarantee of future success. 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.

This blog is solely for educational purposes and the author’s own amusement.  Investing with The Insiders Fund is for qualified investors and by Prospectus only. Nothing herein should be construed otherwise.  THE INSIDERS FUND invests in companies at or near prices that management has been willing to invest significant amounts of their own money in.  If you would like to hear more about how you can get involved with the Insiders Fund, please schedule some time on my calendar. 

Prosperous Trading,

Harvey Sax

The Insiders Fund was the 4th best long-short equity fund in the world in 2019