The Biden administration may be the savviest market timer on or off Wall Street this year. The widely scoffed-at and criticized announcement on March 31 stated that the administration would start selling oil from the nation’s strategic petroleum reserves. It sounded like a cheap trick to influence voters upset about high prices at the pump for the Midterm elections. At the time, the price of a barrel of West Texas Intermediate Crude hovered around $95 per barrel and has gotten as high as $110. Friday’s close of $79.73 represents a short seller’s return of over 30% in less than nine months. At the time, it was criticized as the most partisan of partisan shenanigans. It’s shocking how little play this gets in the financial press. Most professionals would die to have numbers like that, especially this year
There were a handful of notable insider buys. We are going to take a stab at understanding the logic of some of them. Listen to Steve Schwarzman’s meeting with Goldman Sachs. It’s one of the worst years in economic history according to Schwarzman. fff
Name: Robert J Jr Tierney
Position: Director
Transaction Date: 2022-12-02 Shares Bought: 1,500 Average Price Paid: $176.55 Cost: $264,825
Company: CMEGroup Inc. (CME)
The CME Group enables market participants worldwide to efficiently manage risk within and across multiple asset classes by trading futures, options, cash, and over-the-counter products. CME Group provides primary price discovery and referential pricing information to customers in both listed and cash products through its market data in a variety of formats, including real-time, historical, and derived data. The CME Group also provides customers with market education resources through industry-leading research and analytics tools. CME was established in 1898 as a non-profit corporation. It founded CME Clearing in 1919, which is now part of CME. CME was demutualized in 2000, and its parent company, CME Group, completed an initial public offering of Class A common stock in 2002.
Mr. Tierney has been a CME, CBOT, and COMEX member since 2000 and an active independent trader since 2021. Mr. Tierney is now the managing member and owner of Kore Trading LLC, a registered member business with various CME and CBOT memberships. He trades regularly and teaches college grads the principles of spread trading across many asset classes. Mr. Tierney has also been a member of the business conduct committee’s CME committee since 2012. From 2012 through 2018, he was a managing partner at AlphaBit Trading LLC.
Opinion: There are a lot of reasons this stock should work The moribund interest rate business has finally come back to life. Volatility is elevated and this last November was the best November in their history. A director bought 1-14-22 $8.M worth of stock at $170. That was nearly a year ago so the trading signal is gone. The another director, Tierny, bought $264k last week and the conspiracy is brought back to life. What do they see in $CME? It’s just not yet. My hope for the next catalyst is that they raise prices. After all what’s the point of a monopoly if you can’t raise prices? That will pop the stock. A pop here a pop there and before long you get a popping portfolio.
Name: Ruth Porat
Position: Director
Transaction Date: 2022-12-02 Shares Bought: 20,000 Average Price Paid: $83.55 Cost: $1,670,960
Company: Blackstone Inc. (BX)
Blackstone is one of the world’s top investment businesses, with $880.9 billion in Total Assets Under Management as of December 31, 2021. The firm aims to provide good economic impact and long-term value for its investors, the companies in which it invests, and the communities in which it operates. The organisation accomplishes this by utilizing exceptional people and flexible money to assist businesses in resolving difficulties. The asset management activities of the organisation include worldwide investment vehicles focusing on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, and secondary funds. To improve performance, company companies take a solution-oriented approach. The company size, diversification, lengthy track record of investment performance, rigorous investing methodology, and strong client connections enable it to perform effectively in a range of market scenarios, grow the assets under management, and add complementary companies.
Ruth Porat serves on the board of directors. Ms. Porat was appointed to the board of directors on June 25, 2020. Ms. Porat joined Google in May 2015 as Senior Vice President and Chief Financial Officer, and she has held the same position at Alphabet since its inception in October 2015. She is in charge of finance, business operations, real estate, and workplace services. Ms. Porat formerly worked at Morgan Stanley as an executive vice president and chief financial officer. Ms. Porat held positions at Morgan Stanley such as vice chairman of investment banking, co-head of technology investment banking, and global head of the financial institution’s group. Ms. Porat graduated from Stanford University with a BA, an MSc from the London School of Economics, and an MBA from the Wharton School.
Opinion: I would not expect the CFO of Google to be very shrewd with shedding expenses. No doubt that’s what the giant private equity sponsor, Blackstone , is going to be asking its portfolio companies. What do you mean there is no more money for non profitable growth? The current dividend yield isn’t bad at 7.68% Just curious as their dividend paying history and policy. Found this on Seeking Alpha– impressive performance but almost impossible to predict portfolio companies sensitivity to a recession. You can hear it from the horse’s mouth, Steve Schwartzman.
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Name: Robert W Stallings
Position: Director
Transaction Date: 2022-12-07 Shares Bought: 5,000 Average Price Paid: $56.79 Cost: $283,950
Company: Texas Capital Bancshares Inc (TCBI)
Texas Community Bancshares, Inc was established in March 2021 to take over as the holding company for Mineola Community Bank, S.S.B. after Mineola Community Mutual Holding Company underwent a “Conversion” from a mutual holding company to a stock holding company. When making commercial real estate loans, Texas Capital Bancshares Inc. takes into account a number of variables. The business looks at the borrower’s background and finances, such as their credit history, level of experience, and ability to make money. They also look at the value and condition of the assets that are used as collateral for the loan. The organization looks at the borrower’s financial resources, expertise in owning or managing similar property, and payment history with other financial institutions when assessing the borrower’s suitability. The net operating income of the mortgaged property, excluding debt service and depreciation, the loan amount to the mortgaged property’s appraised value, and the debt service coverage ratio are all taken into account when assessing the property as the loan’s security.
Stallings, Robert William Texas Capital Bancshares, Inc., Independent Director Robert William Stallings, the founder of ING Pilgrim Capital Corp., is a businessman who has led five different firms and is Chairman & Chief Executive Officer of Stallings Capital Group, Inc. Texas Capital Bancshares, Inc., MGA Insurance Co., Inc., Texas Capital Bank NA, and Crescent Realty, Inc. are all on Mr. Stallings’ board of directors. Mr. Stallings has worked as a Trust Manager at Crescent Real Estate Holdings LLC, Executive Chairman and Chief Strategic Officer at GAINSCO, Inc., Chairman and Chief Executive Officer of Resource Bank, NA (Dallas, Texas), Chairman of ING Pilgrim Capital Corp., and Chief Executive Officer of Pilgrim Capital Corp. He has an undergraduate degree from Johnson & Wales University, Inc.
Opinion:
Name: Daniel William Fisher
Position: CEO
Transaction Date: 2022-12-05 Shares Bought: 6,400 Average Price Paid: $54.42 Cost: $348,317
Company: Ball Corp. (BLL)
Ball Corporation is a global leader in aluminum packaging for the beverage, personal care, and household products industries. In 1922, the company was incorporated in the state of Indiana, United States of America (U.S.). The company’s sustainable, aluminium packaging products are manufactured in facilities all over the world for a variety of end uses. Within the aerospace industry, the corporation also provides aerospace and other technology and services to government and commercial clients. Aluminum beverage containers are the company’s most popular product, but the company also makes extruded aluminium aerosol containers, recloseable aluminium bottles in a variety of consumer categories, aluminium slugs, and aluminium cups. The aluminium packaging products are sold internationally to multinational beverage, personal care, and home product firms with which the company has long-term ties.
Daniel W. Fisher is the President and Chief Executive Officer of Ball Corporation. Ball Corporation’s President and CEO are Daniel W. Fisher. He was elected to his present position in 2022. In 2021, he was appointed President of Ball Corporation, where he oversaw the company’s worldwide business operations. Prior to his presidency, he was Senior Vice President of Ball Corporation and Chief Operating Officer of the company’s Global Beverage Packaging business from 2016 to 2020. Mr. Fisher formerly worked with Emerson Electric, formerly known as Daniel Industries, and Emerson Process Management. He has held several senior roles at Grey Mountain Partners, Thomson Industries, and Bradken Corporation. Mr. Fisher graduated from Washington University in St. Louis with a bachelor’s degree in business administration and finance in 1995. In 2003, he received an MBA with a concentration in business administration from the University of Colorado, Denver.
Opinion: Ball has a heft mandatory officer and director’s stock ownership plan. Directors are expected to own 5x their annual compensation in stock sometime over the next five years from first employment date. It would be a positive thing if it wasn’t so intertwined with an RSU plan. Net net it doesn’t seem to be a very good indicator of the company’s health and fortunes.
Name: Michael L. Hollis
Position: President
Transaction Date: 2022-12-06 Shares Bought: 31,825 Average Price Paid: $21.98 Cost: $699,477.00
Company: HighPeak Energy Inc. (HPK)
HighPeak Energy is an independent crude oil, and natural gas company focused on acquiring, developing, and producing crude oil, NGLs, and natural gas reserves. It was founded in Delaware on October 29, 2019. The Company’s assets are mainly situated in Howard County, Texas, a part of the Midland Basin’s northeastern region and home to a lot of crude oil. The Signal Peak area is located in the south, and the northern Flat Top area is where the Company has two sizable contiguous land positions focusing on the Howard County region of the Midland Basin, in particular, HighPeak Energy. The Company’s assets include rights, titles, and interests in natural gas and crude oil properties, most of which are situated in Howard County, Texas, a Midland Basin region rich in crude oil.
Mr. Hollis worked as President and COO of Diamondback Energy, Inc., an oil and gas producer focused on the Permian Basin, from January 2017 to September 2019 before joining HighPeak. Before that, he had been COO since 2015 and Vice President of Drilling. Since 2011, Mr. Hollis has also been a member of the boards of directors for Diamondback and Viper Energy Partners LP. Before his employment at Diamondback, Mr. Hollis had positions of increasing importance in production, completions, and drilling engineering at ConocoPhillips and Burlington Resources Inc. He was also a drilling manager at Chesapeake Energy Corporation. Mr. Hollis earned a Bachelor of Science in Chemical Engineering from Louisiana State University in 1998 and has more than 20 years of experience in the oil and gas industry.
Opinion: The Biden administration stopped selling oil at the end of November. Maybe its time to buy. On December 1st, The Energy Department announced it is seeking to cancel or delay sales mandated by Congress in fiscal years 2024 through 2027 so that it can move forward with a White House plan to refill the oil reserve when crude prices reach around $70 a barrel. Do you think that’s another good Biden commodity call. If so these stocks probably will work this week in the energy sector.
Name: Gary Mick
Position: CFO
Transaction Date: 2022-12-06 Shares Bought: 9,500 Average Price Paid: $21.75 Cost: $206,622.00
Company: Six Flags Entertainment Corp. (SIX)
The Six Flags Entertainment Corporation owns and runs theme parks and waterparks in the area. Based on the number of parks, the company is the world’s biggest regional theme park operator and the largest operator of waterparks in North America. Twenty-four of the 27 regional theme parks and waterparks are in the United States, two are in Mexico, and one is in Montreal, Canada. The company’s U.S. parks serve each of the top 11 designated market regions, as determined by an A.C. Nielsen poll of television homes in defined market areas Nielsen Media Research will be available in September 2021. The majority of the company’s income comes from the sale of admission to the parks as well as the sale of food, drinks, souvenirs, and other items and services inside the parks.
Mr. Mick, 61, has 40 years of expertise in business and strategy, especially in the food service sector. He was the President and Chief Financial Officer of Ice-O-Matic, a company owned by the Ali Group and based in Denver, Colorado, until recently. He used to be the Group President of Middleby Corporation, where he was in charge of many food service businesses in the U.S. and Denmark. Before becoming Group President, he worked in increasingly important financial leadership roles until he became President of Blodgett Ovens, which is part of Middleby Corporation. At the Middleby Corporation, Mr. Mick improved operations and cooperation between divisions while bringing in record amounts of money. Mr. Mick earned a B.S. in Accounting from the University of Virginia and a Master of Business Administration from the University of Vermont.
Opinion: Strange time of year to get excited by summertime theme parks and rollercoasters but then they do say to buy straw hats in the winter. There doesn’t seem to be much margin of error. SIX gets interesting at $13
Name: Brian P. Lynch
Position: CFO
Transaction Date: 2022-12-05 Shares Bought: 10,000 Average Price Paid: $21.64 Cost: $216,422.00
Company: Topgolf Callaway Brands Corp. (MODG)
Callaway Golf Company is a pioneer in technology-enabled golf and active living brands, with a portfolio that includes Callaway Golf, Topgolf, Odyssey, OGIO, Travis Mathew, and Jack Wolfskin. The company has evolved from a golf club maker to a modern golf, leisure, and entertainment company over time. With the acquisitions of OGIO and Travis Mathew in 2017, the company expanded its soft goods business to include premium lifestyle product lines, namely apparel, footwear, bags, and accessories that are complementary to golf, to diversify and explore new growth opportunities. The company acquired Jack Wolfskin, a premium outdoor apparel, footwear, and equipment brand, in 2019, which expanded the company’s lifestyle category and provided a platform in the active outdoor and urban outdoor categories.
Brian P. Lynch is Callaway Golf Co.’s Chief Financial Officer and Executive Vice President. Mr. Lynch also serves on the Callaway Golf Company’s board of directors. He earned a master’s degree from the University of Pittsburgh and a bachelor’s degree from Franklin & Marshall College.
Opinion: Sounded like a great business but since I blew out my rotator cuff, I’m not swinging on a golf club for fear of body parts cascading off my shoulder socket following the swing path of the ball.
Name: Matthew J Gould
Position: VP
Transaction Date: 2022-12-06 Shares Bought: 15,912 Average Price Paid: $20.05 Cost: $319,096
Company: BRT Apartments Corp.(BRT)
BRT Apartments Corp. is an internally managed real estate investment trust, or REIT, that specializes in the acquisition, management, and, to a lesser extent, the development of multifamily properties. The company’s primary interests include multifamily property ownership, management, and development. The company typically owns multifamily properties like townhomes, mid-rise apartments, or garden apartments that offer residents access to amenities like a clubhouse, swimming pool, laundry rooms, and cable television. The typical length of a residential lease is one year, and security deposits up to the amount of one month’s rent may be required. These properties have a large percentage of their units leased at market rates.
Jeffrey A. Gould now holds the positions of Director and Senior Vice President of One Liberty Properties, Inc., President, Chief Executive Officer, and Director at BRT Apartments Corp. In addition, Mr. Gould serves as managing general partner at Gould Investors LP, principal at UJA-Federation of New York; member of Young Presidents’ Organization, Inc., World Presidents’ Organization, and Chief Executives Organization, Inc.; principal at Federation Employment & Guidance Service, Inc.; director and senior vice president at Georgetown Partners, Inc.; and member-New York Finance Committee at Real Estate Board of New York, Inc.
Opinion: Who can afford a house these days with mortgages near 7%. Instead I’m investing in BRT’s 5% REIT until interest rates stabilize downward.
Name: Christopher O Blunt
Position: CEO
Transaction Date: 2022-12-05 Shares Bought: 13,000 Average Price Paid: $19.36 Cost: $249,119.00
Transaction Date: 2022-12-01 Shares Bought: 31,000 Average Price Paid: $19.36 Cost: $600,110.00
Company: F&G Annuities & Life Inc (FG)
F&G Annuities & Life, Inc. offers fixed annuities as well as life insurance. It caters to both retail annuity and life insurance consumers as well as institutional clients. The company was established in 1959 and is based in Des Moines, Iowa. F&G Annuities & Life, Inc. is a division of Fidelity National Financial, Inc.
Chris Blunt joined F&G in 2019 after working in insurance, investment management, and wealth management for 33 years. He most recently served as Chief Executive Officer of Blackstone Insurance Solutions, following nearly 13 years in a range of executive leadership roles at New York Life. Chris is a trustee of the American College of Financial Services and a member of the YMCA of Greater New York’s board of directors.
Opinion: Spinoffs can be good.
Name: Thomas L Carter Jr
Position: CEO/Chairman
Transaction Date: 2022-12-06 Shares Bought: 48,492 Average Price Paid: $17.30 Cost: $838,874
Company: Black Stone Minerals L.P. (BSM)
Black Stone Minerals L.P. is one of the United States’ biggest owners and managers of oil and natural gas mineral holdings. The company’s main activity is to actively manage and increase the value of current mineral and royalty assets while broadening the asset base through the purchase of new mineral and royalty holdings. The company adds value by letting people know about mineral properties that are available for lease, coming up with creative ways to structure lease agreements to encourage and speed up drilling, and carefully choosing which lessees to work with on a working interest basis. The company thinks that its wide range of assets and long-lasting, non-cost-bearing mineral and royalty interests will lead to consistent production and reserves over time. This will allow it to give unitholders the vast majority of its cash flow.
Mr. Carter served as President, Chief Executive Officer, and Chairman of the General Partner from November 2014 until June 2018. Mr. Carter started BSMC, which was the company before us. From 1998 to 2015, he was also President, CEO, and Chairman of Black Stone Natural Resources, L.L.C., which was BSMC’s previous general partner. Mr. Carter also established BSMC. Mr. Carter was the managing general partner of W.T. from 1987 until 1992. Carter & Bro., the forerunner of the general partner, and Black Stone Energy Company from 1980 to the present. Mr. Carter founded Black Stone Energy Company, BSMC’s operating and exploratory division, in 1980. From 1978 to 1980, Mr. Carter worked as a loan officer in the Energy Department of the Texas Commerce Bank in Houston, Texas. Before that, he had many other jobs starting in 1975. Mr. Carter earned a B.B.A. and an MBA from the University of Texas at Austin. Mr. Carter has been a director of Carrizo Oil & Gas Inc. since 2005. He has served as a trustee of St. Edward’s University since 2009.
Opinion: It seems like oil and gas are catching a bottom here.
Name: Jeffrey David Goldfarb
Position: VP
Transaction Date: 2022-12-05 Shares Bought: 19,000 Average Price Paid: $12.96 Cost: $246,240.00
Company: G III Apparel Group Ltd (GIII)
Name: Morris Goldfarb
Position: CEO
Transaction Date: 2022-12-05 Shares Bought: 250,000 Average Price Paid: $12.54 Cost: $3,135,000.00
Company: G III Apparel Group Ltd (GIII)
G III Garments Group Ltd. creates, sources, and sells a wide range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits, and performance wear, as well as women’s purses, footwear, small leather goods, cold weather accessories, and luggage. G-III boasts a diverse portfolio of over 30 licensed and original brands, led by five worldwide powerhouses: Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld Paris. The company is not just licensed but also a brand owner and sells the products through a variety of channels. The firm operates in highly competitive fashion markets. The capacity of the organization to continually assess and adapt to changing customer wants and tastes across numerous market groups, distribution channels, and geographic locations are important to success.
Mr. Goldfarb is the Executive Vice President of G-III Apparel Group, where he leads the company’s strategic growth and oversees a wide range of corporate functions and divisions. He joined the company in 2002. He has been a director since 2009 and represents the company’s third generation of leadership. Mr. Goldfarb has played an important role in shaping G-III’s future by developing strategies that advance corporate objectives. Under his direction, the company has acquired several businesses, built a strong licensing and distribution network, and is continuing to invest in a company-wide digital transformation.
Mr. Goldfarb is the Chairman of the Board and Chief Executive Officer of G-III Apparel Group, where he supervises the company’s strategic direction and all aspects of operations. He has been an executive officer of G-III and its predecessors since the company’s inception in 1974. After his father, Holocaust survivor Aron Goldfarb founded what would become G-III in the heart of New York City, Mr. Goldfarb has grown G-III into a best-in-class global design, sourcing, licensing, marketing, and retail partner of choice across brands and retailers. Mr. Goldfarb is an entrepreneur with a vision for the future of clothing and fashion. He has an instinct for merchandising, a great grasp of the product life cycle, and extensive industry ties. He has established a culture of creativity and agility throughout the organization.
Opinion: Overdone stock price collapse on last earnings gave in the know seasoned exectutives a chance to sweep in for some bargain based apparel and stock prics. GIII is up 10-15% since Goldfarb struck.
Name: Jonny Ginns
Position: Director
Transaction Date: 2022-12-07 Shares Bought: 40,402 Average Price Paid: $9.09 Cost: $367,157.00
Company: Ecovyst Inc. (ECVT)
Ecovyst Inc is a leading, integrated, and innovative global provider of specialty catalysts and services. The company’s products and services, which are mostly made of inorganic materials, are meant to make the environment more sustainable. The company makes value-added products to meet global demand trends that are often limited by strict safety and environmental regulations or driven by consumer preferences for eco-friendly alternatives. This creates opportunities for fast, high-margin growth. In particular, the services and goods help businesses make cars that use less gas and put out less pollution. The company thinks that its products are good for the planet because they are mostly inorganic and don’t contain carbon.
Jonny Ginns has served on the board since 2010. Mr. Ginns worked as an outside attorney for several years before joining INEOS in 2006 as the Group General Counsel. He is a director for many INEOS organizations and has experience in many different areas, such as mergers and acquisitions, sales, joint ventures, litigation, finance, and employee benefits. The company believes Mr. Ginns is competent to serve on the Board due to his considerable fundamental business talents, including financial and strategic planning.
Opinion:
Name: Albert P. Behler
Position: Director
Transaction Date: 2022-12-07 Shares Bought: 50,000 Average Price Paid: $5.76 Cost: $287,780.00
Company: Paramount Group Inc. (PGRE)
The Paramount Group, Inc. is a fully integrated real estate investment trust that owns, operates, manages, acquires, and redevelops high-quality, Class A office properties in select central business district submarkets of New York City and San Francisco. The firm does operations through the Operating Partnership, which owns the majority of the company’s real estate and investments. They are the sole general partner of the Operating Partnership and held about more of it as of December 31, 2021.
Mr. Albert P. Behler is President & Chief Executive Officer at Paramount Group, Inc. He serves on the Citymeals-on-Wheels board of directors. In October 1991, he started working for Paramount Group. Mr. Behler previously worked as a principal at Thyssen Handelsunion AG, as the chairman of the Association of Foreign Investors in Real Estate, as a member of the Greenprint Foundation, and as a member of The Samuel Zell and Robert Lurie Real Estate Center. Mr. Behler has an Executive Master of Business Administration, which he got from Georgia State University in Atlanta. He studied law and economics in Germany.
Opinion:
Name: Jason Marc Adler
Position: Director
Transaction Date: 2022-12-06 Shares Bought: 156,000 Average Price Paid: $2.96 Cost: $461,268.00
Company: Cronos Group Inc. (CRON)
The Cronos Group is a cutting-edge international cannabis firm dedicated to developing cannabis research, technology, and product development to create disruptive intellectual property. It also aims to create an iconic brand portfolio. The Company created the United States segment on September 5, 2019, as a consequence of acquiring four Redwood Holding Group, LLC companies. Redwood produces, markets, and distributes dietary supplements containing cannabinoids derived from U.S. hemp and cosmetic goods through retail, hospitality, and e-commerce partner channels in the country. The cultivation, production, and marketing of cannabis and cannabis-derived products for the medical and adult markets are activities of the Rest of the World operating segment.
Jason Marc Adler, who founded AlphaBet Partners LP, Saiers Capital LLC, Alphabet Ventures LLC, and Geronimo LLC, is the managing partner of Gotham Green Partners LLC. Mr. Adler also serves as a principal in AlphaBet Partners Group LP and a member of the board of Cronos Group, Inc. Mr. Adler has held the positions of CEO and managing member at Alphabet Ventures LLC, CEO of Saiers Capital LLC, and CEO of Alphabet Partners LP in the past. The University of Rhode Island awarded Mr. Adler a bachelor’s degree.
Opinion: No a huge buy but Adler continues to purchase. Where there is smoke there is fire except in Utah where you are not allowed to burn the legal bud the cannabis store sell.
Name: Kathryn E Falberg
Position: Director
Transaction Date: 2022-11-30 Shares Bought: 250,000 Average Price Paid: $1.94 Cost: $483,836.00
Company: Nuvation Bio Inc. (NUVB)
Nuvation Bio is a clinical-stage biopharmaceutical business focusing on discovering differentiated and unique therapy alternatives for the most difficult-to-treat tumors where traditional medicines have failed. The business is moving forward with up to six completely owned compounds resulting from therapeutic discovery and development initiatives. The chief executive officer, David Hung, M.D., who created Medivation, Inc., started the company in 2018. To address major unmet needs in oncology, the company will leverage the team’s extensive expertise in medicinal chemistry, preclinical discovery, manufacturing, drug development, and commercialization to bring forward novel small molecules that improve the activity and overcome the liabilities of currently marketed drugs.
Ms. Falberg now serves on the boards of various firms in the health sciences and technology industries, including Arcus Biosciences, UroGen Pharma, Tricida, and The Trade Desk, as well as chairing the Audit Committee. She has held many Chief Financial Officer positions in the science and technology industries during her career, including Applied Magnetics, Amgen, and, most recently, Jazz Pharmaceuticals. Ms. Falberg previously served on the boards of Medivation until its acquisition by Pfizer, as well as Aimmune Therapeutics, Halozyme Therapeutics, BioMarin Pharmaceutical, and Human Genome Sciences. Ms. Falberg graduated from the University of California, Los Angeles, with a B.A. in economics and an M.B.A.
Opinion: No debt but this emerging development state biotech has $3.51 in share cash on Fridays closed price of $1.92.
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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.
The bar is different from selling because the natural state of management is to be seller. 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
