Curious how well insiders are doing with their buys? Scroll through the blog posts and see for yourself
Last week, the market reversed its sour mood with a thunderous rally propelling the S&P 500 by 3.52%. Our insider buys did even better, notching an average of 5.73% returns. Heavily shorted stock, no matter how poor their prospects doubled that. It was the classic case of everybody on the same side of the seesaw. In keeping with the old adage, the market will figure out how to screw most people most of the time.
Name: Robert J Mylod Jr
Position: Director
Transaction Date: 2022-09-01 Shares Bought: 1,000 Average Price Paid: $1,803.65 Cost: $1,803,651.00
Company: Booking Holdings Inc. (BKNG)
Booking Holdings Inc offers worldwide internet reservations for restaurants and travel. The business runs Priceline, which offers online travel reservation services, and Booking.com, which allows customers to book hotels, flights, and rental cars, as well as vacation packages, cruises, and hotel distribution services. It also operates Rentalcars.com, which allows customers to book rentals online. Additionally, it runs Agoda, which offers online services for booking accommodations, flights, ground transportation, and activities. The business also runs OpenTable for making reservations at restaurants online and KAYAK. This online price comparison site lets users search and compare travel prices, including those for airline tickets, hotel rooms, and rental cars. It provides customers, restaurants, and travel service providers with restaurant management services and travel-related insurance products. In February 2018, the business changed its name from The Priceline Group Inc. to Booking Holdings Inc. The organization’s headquarters are in Norwalk, Connecticut, and it was established in 1997.
Robert J. Mylod Jr. has been a member of the Compensation Committee since May 2017 and has been the board’s chair since June 2020. Annox Capital Management is a private investment company that Mr. Mylod created in 2013. He serves as its managing partner. Mr. Mylod served in a number of positions from 1999 to 2011, including vice chair, head of global strategy and planning, and chief financial officer. Mr. Mylod worked as a Principal at the private equity investment company Stonington Partners before joining our company. Currently, Mr. Mylod is a director on Redfin’s board of directors and a member of the audit committee. He participates in the audit and pay committees of Dropbox and the board of directors. He chairs the Vroom, Inc. board of directors and sits on the company’s audit and pay committees. Mr. Mylod sat on the board of directors of Autobytel, a business that makes it easier to purchase and sell vehicles online, from October 2015 to April 2017.
Opinion: Travel is back and in a big way. The only problem is that the market doesn’t believe what your eyes are seeing. Travel related stocks much like the average stock dropped below the 50 day moving average only to reject it soundly. Booking closed Friday up 3.91% making Director Mylod a healthy 9.83%. Most market particpants would be satisfied with their portfolios up nearly 10% in this most difficult of years. There are few signs of it letting up either with jet fuel coming down in price and airfares and overbooking leveling off.
Name: Thomas Sinnickson Gayner
Position: Director
Transaction Date: 2022-09-06 Shares Bought: 500 Average Price Paid: $1,106.44 Cost: $553,220.00
Company: Cable One Inc. (CABO)
Data, video, and voice services are offered in the US by Cable One, Inc. and its subsidiaries. The business provides residential data services as a way to improve the Wi-Fi signal in the entire house. Along with digital video services like national and regional cable networks, music channels, and an interactive and electronic programming guide with parental controls, it also offers residential video services like local networks, local community programming that includes government and public access, and other channels. The company also provides advanced video services, such as whole-home DVRs and high-definition set-top boxes, as well as TV Everywhere, which enables its video customers to stream different channels and shows to mobile devices and computers. Premium channels are also available, which feature movies, original programming, live sporting events, concerts, and other features.
Thomas Sinnickson Gayner is now the co-chief executive officer and director of Markel Corporation as well as the co-CEO of Markel-Gayner Asset Management Corporation (a subsidiary of Markel Corp.). Mr. Gayner serves on the boards of five other businesses. He had previously worked as an accountant for PricewaterhouseCoopers LLP and a vice president for Davenport & Co. LLC. He graduated from the University of Virginia and McIntire School of Commerce, respectively, with a bachelor’s degree.
Opinion: I can’t say I’m excited about a broadband play. There is just too much competition from cellular, monopolistic Comcast, and fierce competitors like Google and their gigabit bandwidth offering.
Name: Tobias Lutke
Position: Director
Transaction Date: 2022-09-07 Shares Bought: 5,894 Average Price Paid: $62.00 Cost: $365,428.00
Company: Coinbase Global Inc. (COIN)
The technology and financial infrastructure for the crypto economy in the United States and elsewhere are provided by Coinbase Global, Inc. The company provides institutions with a market with a pool of liquidity for transacting in crypto assets, the primary financial account in the cryptoeconomy for retailers, as well as technology and services that allow ecosystem partners to create crypto-based applications and securely accept crypto assets as payment. Based in Wilmington, Delaware, and established in 2012, Coinbase Global, Inc.
In September 2004, Tobias Lütke joined the board of directors of Shopify, which he helped co-found. Mr. Lütke has held the position of CEO since April 2008. Mr. Lütke served as the organization’s Chief Technology Officer from September 2004 until April 2008. Mr. Lütke produced many well-known open source libraries, including Active Merchant, while serving on the core team of the Ruby on Rails framework. Mr. Lütke presently has a position on Coinbase’s board.
Opinion: Digital wallets are probably the future. I just don’t know if Coinbase is the victor. Short seller Chanos says COIN is losing a billion dollars per quarter yet insiders keep buying. Short stocks got gas last week and Lutke made a stunning 30% on this buy. I bet he wishes he could sell now but he would be in violation of the SEC Short Swing rule. Fortunately we are not and this is some of the best swing trading out there.
Name: Jochen Zeitz
Position: CEO
Transaction Date: 2022-09-02 Shares Bought: 25,750 Average Price Paid: $38.94 Cost: $1,002,628.00
Company: Harley-Davidson Inc (HOG)
Motorcycles are manufactured and sold by Harley-Davidson, Inc. The business is divided into the Motorcycle and Related Products and Financial Services sectors. Harley-Davidson motorcycles, including cruiser, touring, standard, sportbike, and dual models, as well as motorcycle components, accessories, apparel, and associated services, are designed, produced, and sold under the Motorcycle and Related Products sector. Through a network of independent dealers and e-commerce channels in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific, this market sector offers its products to retail customers. The Financial Services segment offers point-of-sale protection products like motorcycle insurance, extended service contracts, and motorcycle maintenance protection, as well as wholesale financing services like floorplan and open account financing of motorcycles, as well as parts and accessories. Retail financing services include installment lending for the purchase of new and used Harley-Davidson motorcycles. Additionally, this division grants licenses to independent financial organizations that issue credit cards with the Harley-Davidson logo. Incorporated in 1903, Harley-Davidson, Inc. is headquartered in Milwaukee, Wisconsin.
The Chairman of the Harley-Davidson Board of Directors and President and CEO of Harley-Davidson, Inc. is Ochen Zeitz. Since 2007, he has been a board member of the organization, and he founded the Brand and Sustainability Committee. From 1993 through 2011, Zeitz held the positions of Chairman and CEO of the athletic goods manufacturer PUMA. He served as CFO of PUMA from 1993 until 2005. During his 18 years in charge, Zeitz supervised PUMA’s metamorphosis from a company on the verge of bankruptcy into one of the top three athletic goods companies in the world. Zeitz held the position of director of Kering from 2012 to 2016 following PUMA’s acquisition by the luxury goods company Kering (formerly PPR). In addition, from 2010 to 2012, he served as the CEO of Kering’s Sport & Lifestyle subsidiary and a member of the executive committee. Zeitz earned a degree in Business, International Marketing, and Finance from the European Business School (EBS) after completing studies in both Europe and the United States.
Opinion: I don’t see any catalyst but Zeitz has a good track record of timing his purchases and sales. This is a large purchase near above both the 50 day and 200 day moving averages. Business is good and the market appreciates it. This is a buy.
Name: Maurice Anthony Milikin
Position: Chief Supply Chain Officer
Transaction Date: 2022-09-06 Shares Bought: 12,979 Average Price Paid: $37.70 Cost: $489,308.00
Company: Keurig Dr Pepper Inc. (KDP)
With annual revenue, it is a leading beverage company in North America. KDP is a market leader in soft drinks, specialty coffee and tea, water, juice, juice drinks, and mixers, as well as the #1 single-serve coffee brewing machine in the United States and Canada. Keurig®, Dr. Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott’s®, CORE®, and The Original Donut Shop® are among the Company’s more than 125 owned, licensed, and partner brands, which are designed to meet almost any customer demand, at any moment. KDP can bring its line of hot and cold beverages to practically every point of purchase for consumers, thanks to its extensive sales and distribution network. The Company is committed to sourcing, producing, and distributing its beverages responsibly through its Drink Well. The company, formerly Dr. Pepper Snapple Group, is one of North America’s largest beverage companies, with more than 125 owned, licensed, and partner brands. It owns the top single-serve coffee system in the US (Keurig) and one of the US’s leading soft drinks (Dr. Pepper).
Tony Milikin is Keurig Dr. Pepper’s Chief Supply Chain Officer. He is in charge of the Company’s whole supply chain, including production, procurement, logistics, warehousing, transportation, and quality, as well as the environment, health, and safety. Prior to joining KDP in 2021, he was Chief Procurement, Sustainability, and Circular Ventures Officer at Anheuser-Busch InBev, where he was in charge of 70 vertical operations sites. Tony formerly served as MeadWestvaco’s Senior Vice President of Supply Chain, bringing more than 30 years of worldwide expertise in supply chain management. Tony has a master’s degree in business administration from Texas Christian University and a bachelor’s degree in business administration from the University of Florida.
Opinion: Insiders continue to add to their holdings. I wouldn’t be surprised if officers and directors are required to own a multiple of their pay in KDP stock. Many companies have this plan. It’s not so easy to find the disclosure though. KDP is controlled by giant private equity owner JAB and I’m not a fan of their stock moves. The stock has done well though for shareholders including their dividend and capital appreciate- about 8% per annum.
Name: Lorber David A
Position: CEO/Chairman
Transaction Date: 2022-09-07 Shares Bought: 9,362 Average Price Paid: $37.15 Cost: $347,820.00
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 defense; 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 investments 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. 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 and December 2014.
Opinion: These business development companies are hard to evaluate as you would need to appraise the dozens of companies in their portfolios, most of which are private waiting on an exit of some sort.
Name: Shirley Wang
Position: Director
Transaction Date: 2022-09-08 Shares Bought: 284,000 Average Price Paid: $21.17 Cost: $6,012,280.00
Company: Douglas Emmett Inc. (DEI)
Name: Jordan L Kaplan
Position: CEO
Transaction Date: 2022-09-07 Shares Bought: 48,750 Average Price Paid: $20.48 Cost: $998,400.00
Company: Douglas Emmett Inc. (DEI)
A fully integrated, self-managed, and self-administered real estate investment trust (REIT), Douglas Emmett, Inc. (DEI) is one of the leading owners and operators of premium office and multifamily buildings situated in the most prestigious coastal submarkets of Honolulu and Los Angeles. In areas with severe supply limitations, upscale executive housing, and essential lifestyle amenities, Douglas Emmett concentrates on owning and purchasing a sizeable portion of premium office buildings and multifamily developments.
Shirley Wang started Plastpro, Inc. She now serves as the organization’s CEO. Ms. Wang also serves on the boards of the Harvard Westlake School, Preferred Bank (California), Douglas Emmett, Inc., and the Los Angeles World Affairs Council. Shirley Wang formerly served as the UCLA Foundation’s chairman. The Trustees of Columbia University in The City of New York awarded Ms. Wang an MBA after she completed her undergraduate studies at the University of California, Los Angeles.
Since the beginning of the company, Mr. Kaplan has held the positions of president, chief executive officer, and member of the board. Mr. Kaplan began working for the precursor operating firms in 1986, co-founded the immediate predecessor in 1991, and was in charge of their finances from that year until 2006. In 1983, Mr. Kaplan graduated from the University of California, Santa Barbara, with a bachelor’s degree, and in 1986, he earned an MBA from the University of California, Los Angeles.
Opinion: Enough is enough say the officers and directors at besieged REIT. With a heft dividend of 5.27% insiders state unequivocally that the office is not dead and multifamily is booming.
Name: Hoover R David
Position: Director
Transaction Date: 2022-09-09 Shares Bought: 20,000 Average Price Paid: $15.18 Cost: $303,614.00
Company: Elanco Animal Health Inc. (ELAN)
Name: Paul Herendeen
Position: Director
Transaction Date: 2022-09-09 Shares Bought: 10,000 Average Price Paid: $15.03 Cost: $150,250.00
Company: Elanco Animal Health Inc. (ELAN)
Name: Rajeev A Modi
Position: Vice President
Transaction Date: 2022-09-09 Shares Bought: 6,700 Average Price Paid: $14.90 Cost: $99,830.00
Company: Elanco Animal Health Inc. (ELAN)
Name: Jeffrey N Simmons
Position: CEO
Transaction Date: 2022-09-09 Shares Bought: 30,000 Average Price Paid: $14.54 Cost: $436,146.00
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.
R. David Hoover is Independent Chairman at Elanco Animal Health, Inc. He is also on the board of DePauw University (former Chairman), Children’s Hospital Colorado, O-Web Technologies Ltd., and Boulder Community Hospital and a Member of The Colorado Forum. In the past, he occupied the position of Chairman at Ball Corp. and Vice Chairman & Chief Financial Officer at Ball Aerospace & Technologies Corp. (a subsidiary of Ball Corp.), Member of Can Manufacturers Institute, Inc., and Member-Deans Council at Kelley School of Business.
Elanco Animal Health, Inc.’s Independent Director is Mr. Paul S. Herendeen. He serves on the Elanco Animal Health, Inc. board of directors. Mr. Herendeen has worked as a chief financial officer and executive vice president for Bausch Health Cos., Inc., Zoetis, Inc., Warner Chilcott Ltd., Warner Chilcott Plc., a chief financial officer and executive vice president for Warner Chilcott Plc., a senior auditor for Arthur Andersen LLP, and a chief financial officer and executive vice president for Medpoin. He graduated from Boston College with a bachelor’s degree and the University of Virginia’s Darden School of Business with an MBA.
Most recently, Modi worked for Conagra Brands as vice president and general manager of Enhancers and Components. He was in charge of the company’s sizeable grocery division and helped position it for profitable expansion. Modi brings with him two decades of progressively more responsible marketing and sales experience, establishing and expanding brands for businesses, including Procter & Gamble and J.M. Smucker. When he worked at J.M. Smucker, Modi was in charge of the company’s pet strategy and growth, e-commerce, and innovation. She also oversaw the company’s pet portfolio change and marketing. Modi is a great match for Elanco because of his experience in pet care, consumer packaged products, digital, and e-commerce, as well as his focus on developing people and teams.
Businessman Jeffrey N. Simmons, who has served as the CEO of 5 separate organizations, is now Elanco Animal Health, Inc.’s President, Chief Executive Officer, and Director. The International Federation for Animal Health also has him as its chairman. He previously served as the President of Elanco US, Inc., Chairman of The National FFA Organization, President of Health For Animals, and Director at Animal Health Institute. He was also a senior vice president at Eli Lilly & Co. and the country director at Elanco Quimica Ltda, both of which were subsidiaries of Eli Lilly & Co. Mr. Simmons graduated from Cornell University with a bachelor’s degree.
Opinion: Most lousy businesses are a good buy at some point. Has ELAN reached it? I’m tired of losing money following these insiders so it may be just the perfect time to buy when the market is throwing in the towel. JP Morgan downgraded them on Aug 16th with the analyst saying ” he sees better opportunities within his animal health coverage.
Name: David Spector
Position: CEO/Chairman
Transaction Date: 2022-09-08 Shares Bought: 20,000 Average Price Paid: $13.71 Cost: $274,210.00
Company: PennyMac Mortgage Investment Trust (PMT)
PennyMac Financial Services, Inc. is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. PennyMac Financial was founded in 2008 by members of the executive leadership team and two strategic partners, BlackRock Mortgage Ventures, LLC and HC Partners, LLC, formerly known as Highfields Capital Investments, LLC. Since then, they have built what they believe is an industry-leading operational platform to pursue business opportunities in the U.S. mortgage market. It has a strong track record of performance and earnings growth, driven by solid execution of growth strategies while remaining focused on quality and governance. Loan Production, Loan Servicing and Investment Management. As of December 31, 2021, we are the 2nd largest originator and the 6th largest servicer in the U.S., according to Inside Mortgage Finance. In the Investment Management business, I manage PennyMac Mortgage Investment Trust (NYSE: PMT), a publicly-traded mortgage REIT. PMT is a tax-efficient vehicle for investing in mortgage-related assets and a capital partner that helps reduce the balance sheet requirements compared to a typical mortgage company.
David A. Spector is a businessman who has led 9 different organizations. He currently serves as Chairman of PNMAC Mortgage Opportunity Fund LLC, Chairman of PNMAC Mortgage Opportunity Fund LP, President, Chief Executive Officer, and Trustee of PennyMac Mortgage Investment Trust, Chief Executive Officer of PennyMac Corp. (a PennyMac Mortgage Investment Trust subsidiary), President, Chief Executive Officer, and Director of PennyMac Financial Services, Inc., Chief Executive Officer of PennyMac Loan Services LLC, and President & Chief Operating Officer of PennyMac Financial Services, Inc. LLC and the President and COO of PNMAC Capital Management LLC (which are all subsidiaries of PennyMac Financial Services, Inc.).Mr. Spector formerly held the positions of Senior Managing Director-Secondary Marketing at Countrywide Financial Corp., Head-Global Residential Mortgages at Morgan Stanley, and Member of the Federal National Mortgage Association. The University of California, Los Angeles, is where Mr. Spector earned his undergraduate degree.
Opinion:
Name: Daniel D. Burton
Position: CEO
Transaction Date: 2022-09-08 Shares Bought: 90,750 Average Price Paid: $10.99 Cost: $996,970.00
Company: Health Catalyst Inc. (HCAT)
Healthcare firms may get data and analytics technologies and services from Health Catalyst, Inc. Its services include a commercial-grade data and analytics platform for the healthcare industry, AI and data science, which integrates artificial intelligence (AI) into current business intelligence tools to increase the accuracy of analytics, population health management, which identifies improvements throughout the care continuum and provides automated workflows, and financial transformation, which offers costing and labor productivity insights. In March 2017, the business changed its name from HQC Holdings, Inc. to Health Catalyst, Inc. Health Catalyst, Inc., with headquarters in South Jordan, Utah, was established in 2008.
Former Senior Director and Head-Strategy Group at Micron Technology, Inc., Associate Consultant at The Boston Consulting Group, Inc., Managing Partner at HB Ventures LLC, and Marketing Manager & Senior Strategist at HP, Inc., Daniel D. Burton, founder of HB Ventures LLC, is currently Chief Executive Officer & Director at Health Catalyst, Inc. Mr. Burton graduated from Brigham Young University with a bachelor’s degree and Harvard University with an MBA.
Opinion: HCAT has all the buzz words and with the multi billion dollar purchase announced of Signify, one would think that HCAT would get a sudden reevaluation. The CEO’s purchase of $1million worth of stock is a big vote of confidence as the company flirts with an all time low. Clearly business is troubled they only advertising 3 positions on the career page. We’re taking a flyer on this none the less.
Name: Ronald L Nelson
Position: Director
Transaction Date: 2022-08-30 Shares Bought: 35,000 Average Price Paid: $8.71 Cost: $304,800.00
Company: Hanesbrands Inc. (HBI)
Name: Stephen B Bratspies
Position: CEO
Transaction Date: 2022-09-06 Shares Bought: 30,000 Average Price Paid: $8.65 Cost: $259,500.00
Company: Hanesbrands Inc. (HBI)
Name: Cheryl K Beebe
Position: Director
Transaction Date: 2022-09-01 Shares Bought: 11,494 Average Price Paid: $8.62 Cost: $99,078.00
Company: Hanesbrands Inc. (HBI)
An array of basic clothing for men, women, and kids is designed, produced, sourced, and sold by consumer products business Hanesbrands Inc. The business is divided into three divisions: international, activewear, and innerwear. In addition to intimate apparel, like bras and shapewear, home goods, T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, team wear, and thermals, as well as licensed logo apparel, it sells men’s, women’s, children’s, and men’s underwear, as well as activewear, socks, and children’s underwear. The business grants rights to use the Champion brand on athletic footwear and accessories. The majority of the products offered by Hanesbrands Inc. are sold under the following brand names: Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, DKNY, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, DIM, Sheridan, Bras N Things, Lovable, Wonderbra, Berlei, Abanderado, Shock Absorber, Zorba, Explorer.
Mr. Ronald L. Nelson holds the positions of Chairman and Chief Executive Officer of Avis Budget Car Rental LLC and Avis Rent A Car System LLC in addition to being an Independent Director at Paramount Global, Wyndham Hotels & Resorts, Inc., and Hanesbrands, Inc. He serves on the boards of directors for Wyndham Hotels & Resorts, Inc. and Paramount Global. Mr. Nelson has held positions as Chairman & CEO of Avis Group Holdings LLC (New Jersey), Independent Director for Viacom, Inc., Lead Independent Director for Convergys Corp., and Executive Chairman for Avis Budget Group, Inc. DW Studios LLC’s co-chief operating officer, Paramount Communications, Inc.’s director, and executive vice president, and Budget Rent A Car System, Inc.’s chairman and co-chief executive officer. He was also a member of the PHH Corp. board. He graduated from the University of California, Berkeley, with a bachelor’s degree and the University of California, Los Angeles, with an MBA.
Stephen B. Bratspies currently holds the positions of Chief Executive Officer and Director of Hanesbrands, Inc. Additionally, he serves on the boards of The Jones Center and the Northwest Arkansas Children’s Shelter. Stephen B. Bratspies holds an MBA from The Wharton School of the University of Pennsylvania and an undergraduate degree from Franklin & Marshall College. Mr. Bratspies has held the positions of Chief Merchandising Officer-Walmart US & EVP at Walmart, Inc., Chief Marketing Officer & Senior Vice President for Specialty Brands, Inc., and Chief Marketing Officer at Frito-Lay, Inc.
Cheryl K. Beebe is the current Chairman of the Goldman Sachs Trust II. Ms. Beebe serves on the boards of five other businesses. She formerly held the positions of Executive Vice President and Chief Financial Officer for Ingredion, Inc., Director of Finance and Planning for CPC International, Inc., and Independent Director for Convergys Corp. the Rutgers State University of New Jersey awarded Ms. Beebe with her undergraduate degree, while Fairleigh Dickinson University awarded her MBA.
Opinion: If you want growth, look elsewhere.
Name: Martin William C
Position: Chief Strategy Officer
Transaction Date: 2022-09-01 Shares Bought: 59,105 Average Price Paid: $5.68 Cost: $335,980.00
Company: Immersion Corp (IMMR)
Immersion Corporation, together with its subsidiaries, develops, scales, and licenses haptic technologies that enable people in North America, Europe, and Asia to interact with and experience diverse digital goods using their sense of touch. Technology, patent, and mixed licensing are all available through the firm. It also offers software development kits (SDKs) that include tools, integration software, and effect libraries for designing, encoding, and playing back tactile effects in the video. In addition, the firm provides reference designs and reference technologies, as well as engineering and integration services, as well as software and firmware services.
Indie Research LLC, Princeton Equity Group, LLC, and Raging Bull, Inc. are among the five firms he founded. William Charles Martin is the Chairman and Chief Investment Officer of Raging Capital Management LLC (which he formed in 2006) and the Director and Chief Strategy Officer of Immersion Corp., both of which he founded. Mr. Martin’s past positions include Chairman of the Jumpstart New Jersey Angel Network LLC, Principal of Indie Research LLC (which he started in 2010), and Partner of Princeton Equity Group, LLC (he founded the company in 2013).
Opinion: Patent trolls in general haven’t proved to be fun holdings but the stock has made the last insider to buy over 50% in a few months and is outperforming the averages.
Name: Roger Jeffs
Position: CEO
Transaction Date: 2022-09-06 Shares Bought: 43,820 Average Price Paid: $5.57 Cost: $243,990.00
Company: Liquidia Corp. (LQDA)
A biopharmaceutical firm called Liquidia Corporation creates, produces, and markets a range of goods for unmet patient needs in the US. YUTREPIA, an inhaled dry powder formulation of treprostinil for the treatment of pulmonary arterial hypertension, is one of its product candidates. Additionally, it sells generic treprostinil injectables in the US. Incorporated in 2004, Liquidia Corporation is headquartered in Morrisville, North Carolina.
Currently serving as Chief Executive Officer & Independent Director at Liquidia Corp. and Co-Owner at Bull City Select Investments LLC, Dr. Roger A. Jeffs founded Kriya Therapeutics, Inc. and Bull City Select Investments LLC. Dr. Jeffs also serves on the boards of Axsome Therapeutics, Inc., Albireo AB, Roivant Sciences, Inc., and Kriya Therapeutics, Inc. Prior to joining United Therapeutics Corp., Roger A. Jeffs held the positions of president, co-chief executive officer, and director. He was also an associate director for clinical research at Amgen, Inc. and a member for clinical research at Glaxo Wellcome, Inc. Dr. Jeffs graduated from Duke University’s undergraduate program and the UNC School of Medicine for his medical degree.
Opinion: Wild ride Liquidia is a binary outcome stock.
Name: Gordon M Binder
Position: Director
Transaction Date: 2022-09-02 Shares Bought: 61,841 Average Price Paid: $4.40 Cost: $272,100.00
Transaction Date: 2022-09-01 Shares Bought: 48,159 Average Price Paid: $4.00 Cost: $192,636.00
Company: Humacyte Inc. (HUMA)
The company Humacyte, Inc. develops and produces off-the-shelf, implantable, and bioengineered human tissues for the treatment of illnesses in a variety of anatomical sites across a wide range of therapeutic fields. The business designed and produced human acellular vessels on a platform of proprietary and scientific technologies (HAVs). Its experimental HAVs are made to be readily implanted into any patient without triggering an immunological rejection or a reaction against a foreign body. In addition to developing its HAVs for pediatric heart surgery and cellular therapy delivery, including pancreatic islet cell transplantation to treat Type 1 diabetes, the company is currently developing a portfolio of HAVs that would target the market for vascular repair, reconstruction, and replacement, including vascular trauma, arteriovenous access for hemodialysis, peripheral arterial disease, and coronary artery bypass grafting. Durham, North Carolina, serves as the company’s headquarters. It was established in 2004.
X-Chem, Inc. was created by Gordon M. Binder (Massachusetts). Mr. Binder now serves as Chairman of Neuvogen, Inc. He serves on the boards of five further businesses. Mr. Binder has held a variety of leadership positions in the past, including CEO of Amgen, Inc., Finance Manager at Ford Motor Co., Chief Financial Officer of System Development Corp., Managing Director at Coastview Capital LLC, Industry Expert at Pearl Street Venture Funds, Financial Manager at Litton Industries, Inc., Chairman for Biotechnology Innovation Organization, and Chairman of Pharmaceutical Research & Manufacturers of America. He graduated from Purdue University with a bachelor’s degree and from Harvard University and Harvard Business School with an MBA.
Opinion: This will be a tough hold and we are passing on it.
Name: James Huang
Position: Director
Transaction Date: 2022-09-06 Shares Bought: 55,573 Average Price Paid: $4.13 Cost: $229,662.00
Company: CASI Pharmaceuticals Inc. (CASI)
A biopharmaceutical firm called CASI Pharmaceuticals, Inc. creates and markets pharmaceutical and therapeutic products in China, the US, and other countries. It provides EVOMELA, an intravenous melphalan formulation, for use as a conditioning therapy before stem cell transplantation and as palliative therapy for multiple myeloma patients. CNCT19, an autologous CD19 CAR-T investigative product for the treatment of patients with B-cell acute lymphoblastic leukaemia (B-ALL) and B-cell non-Hodgkin lymphoma (B-NHL), is part of the company’s product pipeline. CB-5339, which is in Phase I clinical trial for acute myeloid leukaemia and myelodysplastic syndrome, and BI-1206, which is in a Phase I/II trial in combination with the anti-PD1 therapy Keytruda for solid tumors and in Phase I/IIa trial in combination with MabThera (rituximab) in patients with relapsed/refractory NHL.
Since April 2013, Mr. Huang has served as a director of the company. In 2011, Mr. Huang became a managing partner at Kleiner Perkins Caufield & Byers China, where he concentrates on the company’s life sciences practice. His primary financial interests are in healthcare innovation for China’s expanding market and in assisting business owners in creating successful enterprises. James was a managing partner at Vivo Ventures, a venture capital company that specialized in health sciences investments, before joining KPCB China. James oversaw various investments in China when he was with Vivo. James served as president of Anesiva, a biopharmaceutical firm specializing in pain management therapies, before joining Vivo in 2007. He has held top positions in business development, sales, marketing, and R&D over his 20-year career in the pharmaceutical and biotech sectors with Tularik Inc. (acquired by Amgen), GlaxoSmithKline LLC, Bristol-Meyers Squibb, and ALZA Corp.
Opinion: The biggest risk reward I know of in the biotech category. We’ve blogged extensively about CASI.
Name: Jeremy Andrus
Position: CEO
Transaction Date: 2022-09-07 Shares Bought: 68,644 Average Price Paid: $2.96 Cost: $202,927.00
Company: Traeger Inc. (COOK)
Wood pellet-fueled barbecue grills are designed, sourced, sold, and supported by Traeger, Inc. and its subsidiaries for use by merchants, distributors, and direct customers in the United States. Through the Traeger app, users of the company’s internet-connected wood pellet grills can set up, monitor, and manage their barbecue. The firm also creates a collection of digital material, such as instructional films and recipes that show users how to improve their culinary abilities. They also develop branded short- and long-form content that highlights stories, community members, and Traegerhood lifestyle content. Additionally, it offers wood pellets that are used to fuel grills, rubs, sauces, seasonings, and marinades, as well as covers, drip trays, bucket liners, and shelves. It also offers tools for meal preparation, cooking, and cleanups, such as MEATER smart thermometers, barbecue tools, cleaning solutions, and pellet storage systems.
The original wood pellet grill company, Traeger Grills, whose products have revolutionized outdoor cooking, is led by Jeremy Andrus as president and chief executive. In 2014, he and a business partner bought the firm, growing it from a modest, local operation with a 26-year history to a multi-million dollar brand that controls more than 50% of the world’s wood pellet grill industry. This was primarily accomplished by Jeremy, who oversaw a restructuring that resulted in the transfer of the company’s headquarters from Oregon to Utah and the rebuilding of its team with an emphasis on the people and culture that made up the business.
Opinion: This doesn’t cook for me.
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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.
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 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, 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
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