Animal spirits returned in force last week. The average insider returned 7.96% and a median return of 6.61%. The S&P 500 scorched 3.97%. The safe money crowd collecting their guaranteed 4%-5% is near the half-year point. They’ve earned a little less than their guaranteed 2%. That’s 2% for the year to date when the market just turned in twice that for a week. Fear of missing out, FOMO, is a dangerous thing. One way to avoid that investment mistake is to pay attention to what insiders are doing. Normally they don’t chase their stocks in a FOMO moment. They are more likely to be sellers.
You can be an insider, too– by clicking here
Name: Kevin J Dallas
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 7,000 Average Price Paid: $285.26 Cost: $1,996,800
Company: Align Technology Inc (ALGN)
Align Technology, Inc.’s core business operations include designing, manufacturing, and marketing Invisalign clear aligners, iTero intraoral scanners and dental services, and exocad computer-aided design and computer-aided manufacturing software for dental labs and dental professionals. The firm promotes and distributes consumer products, including retainers, aligner cases, teeth whitening treatments, and cleaning solutions under Invisalign and other brands, in addition to the things mainly suggested by a doctor. The primary goals are to make clear aligners the standard treatment for malocclusions, or tooth misalignment, the Invisalign system the preferred treatment option for patients, general dentists, and orthodontists worldwide, intraoral scanners the standard scanning device for digital dental scans, and exocad CAD/CAM software the standard choice for dental labs.
Kevin J. Dallas has been an Align Technology director since May 2018. From 2020 until its purchase by Aptiv in 2022, Mr. Dallas served as President and Chief Executive Officer of Wind River, a firm whose software implements loT systems. Kevin Dallas, who has over 25 years of expertise driving digital innovation and development at technology firms, was responsible for all elements of Wind River’s worldwide operations. He formerly worked at Microsoft as the corporate vice president of cloud and AI business development. He managed a team at Microsoft that created collaborations that allowed customers and partners to digitally change across sectors such as connected/autonomous cars, industrial IoT, discrete manufacturing, retail, financial services, media and entertainment, and healthcare. He graduated with honors from Staffordshire University in Stoke-on-Trent, Staffordshire, England, with a B.S.c. in electrical and electronic engineering.
Opinion: Align is more than Invisalign teeth straightening but not much more. According to Bard, Invisalign accounts for the vast majority of Align Technology’s revenue. In the fourth quarter of 2022, Invisalign generated $731.7 million in revenue, which was 82.45% of the company’s total revenue of $901.5 million. For the full year 2022, Invisalign generated $3.1 billion in revenue, which was 83.7% of the company’s total revenue of $3.7 billion. This actually looks accurate as Google seems to have lifted the info from Business Quant, a subscription-based service run by MBAs and CFAs according to their About page. International accounts for about 57% of revenue.
Insiders have been buying significant amounts of ALGN including CEO Hogan’s purchase of 2,928 shares at $341.5 back in February. I suppose this is a giant addressable market revenue growth is plateauing, perhaps even stalling.
Name: Joe E Kiani
Position: CEO and Chairman of the Board
Transaction Date: 2023-05-25 Shares Bought: 6,365 Average Price Paid: $157.16 Cost: $1,000,342
Company: Masimo Corp. (MASI)
Masimo is a multinational medical technology provider that creates, produces, and sells a range of noninvasive monitoring systems and hospital automation solutions. The company’s goal is to decrease the price of medical care while improving patient outcomes. Patient monitoring solutions typically include a monitor or circuit board, specialized single-patient use, or reusable sensors, software, and cables. Through its direct sales force, distributors, and partners with original equipment manufacturers, the company offers its products to hospitals, emergency medical service providers, home care providers, long-term care facilities, doctor’s offices, veterinary clinics, and consumers. In May 1989, the company was incorporated in California; in May 1996, it was reincorporated in Delaware. Measure-through Motion and Low PerfusionTM pulse oximetry, also known as Masimo Signal Extraction Technology pulse oximetry, is the company’s main line of business.
Joe established the Masimo Foundation for Ethics, Innovation, and Competition in Healthcare. To provide access to high-quality healthcare and enhance lives worldwide, this charity collaborates closely with institutions, including the Carter Center, Smile Train, and United4Oxygen. Soon after, he was named the co-inventor of “modern pulse oximetry,” as it is currently known. His invention altered how doctors utilize the “fifth vital sign” by reducing false alarms in pulse oximetry by 95%. He expanded the company from a “garage start-up” to a prosperous publicly listed enterprise that employs more than 5,000 people globally. He and his team currently hold over 600 patents, including the creation of measure-through-motion pulse oximetry, and they have contributed to the solution of many “unsolvable” clinical problems.
Opinion: Kiani has a good track record on timing of his purchase of MASI. The conversation has been hijacked by the litigation between MASI and Apple over the iWatch using Massimo pulse oximetry tech. It recently came to a court decision with a mistrial. This will probably continue on as neither side is likely to give up. MASI has a a vigorous record of protecting their IP. Politan Capital, an activist shareholder, with ~9% is lobbying for a shake up of the board. They claim that CEO Kiani has an employment contract that functions as a poison pill. A lot of the growth was through the acquisition of Sound United, a consumer audio company. Its curious to me if its so bad that they would buy 9% of the outstanding shares if they were so unhappy the way Kiani is running the business.
Name: Thomas A Wimsett
Position: Director
Transaction Date: 2023-05-25 Shares Bought: 2,000 Average Price Paid: $145.51 Cost: $291,020
Company: Jack Henry & Associates Inc (JKHY)
Jack Henry & Associates, Inc. is a well-rounded financial technology firm. JKHY was started in 1976 as a supplier of real information processing solutions for banks. Today, the Company’s broad range of products and services includes transaction processing, business process automation, and information management for approximately 7,800 financial institutions and corporate organizations. The Company’s products and services provide clients with solutions that may be customized to their specific growth, service, operational, and performance objectives. The well-rounded solutions also help financial institutions to deliver the high-demand goods and services demanded by their consumers to compete more effectively and capitalize on growing trends impacting the financial services sector.
Thomas Wimsett is the Chairman and Managing Partner of Merchant’s PACT, a payments consultancy organization. He has more than 30 years of expertise in the payments sector. Thomas has been a Jack Henry board of directors member since 2012. Thomas A. Wimsett is an entrepreneur and businessman who created Iron Triangle Payment Systems LLC, Wimsett & Co. LLC, and Merchant’S Pact, serving as the CEO of eight firms. Mr. Wimsett is the Executive Chairman of EchoSat, Inc., the Chairman and Managing Partner of Wimsett & Co. LLC, the Chairman and Managing Partner of Merchant’s Pact, and the Executive Advisor of Thompson Street Capital Managers LLC. Mr. Wimsett also serves on the board of Jack Henry & Associates, Inc. Mr. Wimsett obtained his undergraduate degree from the University of Louisville and his doctoral degree from the University of Texas at El Paso.
Opinion: Software provider to banks has sold correlated closely to bank shar price decline. Is this selloff justified? I have a feelin that if you stay in business, you pay for your banking software. I think I’d buy this, but I don’t know if Mr. Market even cares about this. It’s not just what’s logical from a valuation perspective, it’s also what people care about. I don’t know if AI will ever get that far but I bet it could do better than most already. According to Bard,” According to the company’s 2022 proxy statement, all directors and executive officers are required to own at least 1,000 shares of Jack Henry common stock. The company’s CEO, Jack Henry, is required to own at least 20,000 shares of Jack Henry common stock.” Whimsett after this purchase owns 36,950 shares
Name: Jamie Odell
Position: Director
Transaction Date: 2023-05-29 Shares Bought: 10,000 Average Price Paid: $58.98 Cost: $589,800
Company: Light & Wonder Inc. (LNW)
Light & Wonder, Inc. is a cross-platform gaming firm that operates in the United States and overseas. It works in three segments: gaming, display, and iGaming. The casino division provides operators with new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, spare parts; table items such as shufflers; and perpetual licenses. Its iGaming division offers a variety of digital gaming material, including digital real-money gambling, distribution platforms, and other content and services. This sector also includes the Open Platform System, which provides a variety of reporting and administrative activities, as well as technologies that provide operators control over many aspects of digital gaming operations.
Jamie Odell became Executive Chair of the Scientific Games Board in 2020 after working as a senior adviser to the Board and CEO Barry Cottle since May 2019. Mr. Odell joins the Board with over 30 years of experience as a Global CEO in the consumer products, technology, and gaming sectors. From 2009 until 2017, Mr. Odell was the CEO of Aristocrat Technologies. Mr. Odell led Aristocrat through a successful worldwide transition that enhanced its industry leadership, recruited top personnel, and provided strong returns for investors during his 8-year stint as CEO. Mr. Odell had a successful senior leadership career directing global organizations in the United States, Australia, Europe, and Asia, including Managing Director responsibilities with Foster’s Group, Beringer, and Allied Lyons.
Opinion:
Name: Robert W Stallings
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 5,000 Average Price Paid: $47.60 Cost: $238,000
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 assesses the borrower’s credentials and financial situation, including their credit history, profitability, and level of experience, as well as the worth and condition of the assets used as collateral for the loan. The organization looks at the borrower’s financial resources, expertise owning or managing similar property, and payment history with other financial institutions when assessing the borrower’s suitability.
Robert William served as Independent Director at Texas Capital Bancshares, Inc from December 2001. 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 previously served as 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, Chairman of ING Pilgrim Capital Corp., and Chief Executive Officer of Pilgrim Capital Corp. Johnson & Wales University, Inc. awarded Robert William Stallings an undergraduate degree.
Opinion: Banks, banks, banks, you figure it out.
Name: Robert W Jr Wo
Position: Director
Transaction Date: 2023-06-01 Shares Bought: 6,500 Average Price Paid: $39.85 Cost: $259,045
Company: Bank Of Hawaii Corp (BOH)
Bank of Hawaii Corporation is a Delaware corporation that operates as a bank holding company in Honolulu, Hawaii. The bank is divided into three business segments for management reporting reasons: consumer banking, commercial banking, and Treasury and Other. The Company operates in a highly competitive environment, with intense competition from traditional financial services providers such as banks, savings associations, credit unions, mortgage companies, finance companies, mutual funds, brokerage firms, insurance companies, and other non-traditional financial service providers such as commercial and manufacturing companies’ financial service subsidiaries. Some of the rivals are subject to different degrees of regulation and monitoring than banks and BHCs and therefore obtain preferential tax status. Consequently, some of the rivals’ cost structures may be cheaper.
Robert W. Wo has been the company’s owner and director since 1984, helping this third-generation family-owned enterprise grow into Hawaii’s biggest furniture store. Mr. Wo served as a member of the Hawaii Business Roundtable for more than 30 years, and the organization aims to advance Hawaii’s total economic vitality and social well-being. Mr. Wo obtained his M.B.A. from Harvard Business School after earning his bachelor’s degree in economics from Stanford University. Mr. Wo now holds positions on the Iolani School, Assets School, and Hawaii Medical Services Association boards. He has also previously held positions on the boards of The Rotary Club of Honolulu, Junior Achievement of Hawaii, Retail Merchants of Hawaii, and Aloha United Way.
Opinion: Banks, banks, banks, you figure it out.
Name: Arlen Dale Nordhagen
Position: Vice Chair/Director
Transaction Date: 2023-05-26 Shares Bought: 25,000 Average Price Paid: $36.92 Cost: $923,000
Company: National Storage Affiliates Trust (NSA)
National Storage Affiliates Trust was established in Maryland as a fully integrated, self-administered, and self-managed real estate investment trust. To conduct the business, which is centered on the ownership, operation, and acquisition of self-storage properties primarily located within the top 100 metropolitan statistical areas across the United States, the company serves as the sole general partner of the operating partnership subsidiary, NSA OP, LP, a Delaware limited partnership formed on February 13, 2013. As of December 31, 2021, the firm has ownership stakes and was the operator of 1,050 self-storage facilities spread over 42 states and Puerto Rico.
Arlen D. Nordhagen is the Executive Chairman of the Board of Trustees and a co-founder of NSA. Arlen co-founded SecurCare Self Storage, the forerunner of NSA, in 1988 and has worked in the self-storage sector for more than 30 years. From 1999 through 2013, he led SecurCare as president and chief executive officer. Arlen earned a master’s degree in business administration with honors from Harvard University and a bachelor’s degree in chemical engineering with distinction from the University of North Dakota. Arlen founded MMM Healthcare, Inc., the largest Medicare Advantage health insurance carrier in Puerto Rico, in addition, to securing.
Opinion: Steady insider buyer. With short term rates expected to be high for the next several months, REITS and utilities are under pressure until the Fed formally cuts. It should move then.
Name: Bernard Jin Kim
Position: Chief Executive Officer
Transaction Date: 2023-05-31 Shares Bought: 31,439 Average Price Paid: $34.44 Cost: $1,082,671
Company: Match Group Inc.(MTCH)
Match Group, Inc. is a prominent supplier of digital solutions that enable people to build meaningful connections via its portfolio businesses. Tinder®, Hinge®, Match®, Meetic®, OkCupid®, PairsTM, Plenty Of Fish®, Azar®, Hakuna®, and other brands in the worldwide portfolio are designed to boost users’ chances of engaging with others. The organization provides customized services to satisfy the different tastes of people via recognized brands. The company’s services are offered to people all around the globe in over 40 languages. The purpose is to help people all across the globe make meaningful relationships. Consumer preferences vary greatly and are impacted by demography, location, cultural norms, religion, and purpose. Consequently, the market for social connection applications is fragmented, and no one service has been able to serve all those looking for social connections efficiently.
Bernard Kim is the CEO of Match Group. Bernard has over 20 years of experience in the mobile, entertainment, and gaming sectors, most recently serving as President of Zynga. Bernard managed how Zynga used games to connect the globe. He established and oversaw a worldwide team responsible for Zynga’s marketing, user acquisition, ad monetization, revenue, communications, consumer insights, data science, product management, business development, partnerships, mergers and acquisitions, and player network. Bernard formerly worked at The Walt Disney Company as the Director of Sales and Channel Strategy, overseeing sales and retail for Disney Mobile. Bernard graduated from Boston College with a Bachelor of Arts in Economics and Communications.
Opinion Kim bought 16,000 shares in 8/4/22 for $63.58 when he first became CEO. It hasn’t worked out great for shareholder so far as this latest purchase is at half the price.
Name: Steven A Webster
Position: Director
Transaction Date: 2023-05-31 Shares Bought: 7,384 Average Price Paid: $30.50 Cost: $225,175
Company: Callon Petroleum Co. (CPE)
Callon Petroleum Company has been involved in exploring, developing, purchasing, and producing oil and natural gas resources since 1950. An independent oil and gas firm, Collan is committed to purchasing, exploring, and developing top-tier properties in South and West Texas’ most productive oil basins. The Midland and Delaware Basins, which are a component of the greater Permian Basin in West Texas and the Eagle Ford in South Texas, are the main horizontal development areas for the company’s operations. The main activities in the Permian are characterized by a high-return, oil-weighted drilling inventory with various potential horizontal development intervals, supported by an established, cash flow-generating enterprise in the Eagle Ford.
Fredrick D. Schaufeld is a partner in and managing director of SWaN & Legend Venture Partners. In addition to the Capital One Arena, the Washington Capitals, the Wizards, and the Mystics Capital City Go-Go, Mr. Schaufeld is a partner in Monumental Sports and Entertainment. He is a co-owner of the Washington Nationals, Team Liquid, Harpers Ferry’s Hill Top House Hotel, and the Professional Fighters League. Mr. Schaufeld also owns American Bike Ride, the parent business of the DC Bike Ride. Mr. Schaufeld lives in Virginia with his wife, Karen. They participate actively in organizations that support early childhood development, the arts, peace, the environment, literacy, and health. He chairs the Inova Health System Foundation and is on the board of the Wolf Trap Foundation.
Opinion: Not surprising, more buying in CPE
Name: Erik D. Ragatz
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 70,000 Average Price Paid: $28.50 Cost: $1,994,650
Company: Grocery Outlet Holding Corp. (GO)
Grocery Outlet is a high-growth, extreme-value retailer of quality, name-brand consumables, and fresh items distributed via an independent shop network. The corporation has 441 shops as of December 31, 2022, across California, Washington, Oregon, Pennsylvania, Idaho, Nevada, Maryland, and New Jersey. The corporate headquarters are in Emeryville, California. Each establishment provides a fascinating treasure hunt shopping experience in a small-box style that is simple to browse. The flexible purchasing methodology provides high-quality, name-brand opportunistic items at 40% to 70% lower prices than traditional merchants. The businesses are managed by entrepreneurial independent operators who create a neighborhood atmosphere via individualized customer service and a specific product range.
Mr. Ragatz has been a Partner with Hellman & Friedman LLC, a private equity company, since January 2008. Mr. Ragatz oversees Hellman & Friedman’s consumer, retail, and industrial investments. He is now the Chairman and a member of the board of directors of Snap One Holdings Corp. He also serves as Wand TopCo Inc.’s lead outside director and member of the audit and pay committees. Mr. Ragatz served as Chairman of the Board from October 2014 to December 2022 and is presently the Lead Independent Director. Mr. Ragatz has extensive strategic, financial, and business development skills and insight into the correct functioning and responsibility of corporate boards of directors obtained via his years of service on the boards of directors of H&F’s portfolio businesses.
Opinion: GO is growing but it seems expensive.
Name: Jay Sugarman
Position: Chairman And CEO
Transaction Date: 2023-05-26 Shares Bought: 10,000 Average Price Paid: $24.58 Cost: $245,849
Company: Safehold Inc. (SAFE)
Safehold Inc is a publicly listed firm that works via one reportable division by purchasing, maintaining, and capitalizing ground leases. The firm believes the business has qualities similar to a high-grade, fixed-income investing industry but with specific distinct benefits. Compared to alternative fixed-income investments in general, ground leases typically benefit from built-in growth derived from contractual base rent increases and the opportunity to realize value from residual rights to take ownership of the buildings and other improvements on the land at no additional cost to the company. Compared to other highly-rated investments, the business believes these attributes provide the prospect for greater risk-adjusted total returns.
Jay Sugarman is a businessman and entrepreneur who created Safehold, Inc., iStar, Inc., Starwood Capital Group I LP, among other firms. He is now the Chairman of Pennsylvania Professional Soccer LLC, the Chairman and CEO of Safehold, Inc., the Chairman and CEO of SFTY Manager LLC, and the Chief Executive Officer of Star Holdings. Mr. Sugarman has previously served as Chairman of iStar Acquisition Corp., Chairman and Chief Executive Officer of TriNet Corporate Realty Trust, Inc., Chairman, and Chief Executive Officer of iStar, Inc., Chairman and Chief Executive Officer of LNR Property LLC. Chairman and Chief Executive Officer of Safehold, Inc. Mr. Sugarman has a bachelor’s degree from Princeton University as well as an MBA from Harvard Business School.
Opinion: Dubious proposition that ground leases are worth a lot more. I don’t know how you would evaluate this?
Name: Gary W Ferrera
Position: EVP & Chief Financial Officer
Transaction Date: 2023-05-25 Shares Bought: 4,000 Average Price Paid: $24.23 Cost: $96,920
Company: Driven Brands Holdings Inc. (DRVN)
Name: Jonathan G. Fitzpatrick
Position: Chief Executive Officer
Transaction Date: 2023-05-30 Shares Bought: 42,000 Average Price Paid: $23.76 Cost: $997,920
Company: Driven Brands Holdings Inc. (DRVN)
Driven Brands is North America’s biggest automotive services firm, with over 4,800 sites in 49 states and 13 countries. The company’s scalable, diversified platform delivers high-quality services to a diverse spectrum of consumer and business clients who depend on their autos to commute to work and in many other facets of their daily lives in all economic circumstances. The breadth of services covers a broad range of automobile requirements, including paint, collision, glass, and repair services and several high-frequency services, including oil changes and vehicle washes. With modest maintenance capital expenditures, the firm has produced constant recurring revenue and good operating margins.
Gary is the Executive Vice President and Chief Financial Officer, in charge of all elements of finance and accounting, tax, treasury, internal audit, and investor relations. Ferrera provides almost 30 years of worldwide financial experience, including nearly two decades as CFO. Before joining Driven Brands, Ferrera was Chief Financial Officer at Skillsoft Corporation, where he helped build up the public company infrastructure and integrate three acquisitions while also divesting a business sector. Ferrera was Cardtronics’ Chief Financial Officer from 2017 until its purchase by NCR Corporation in 2021. Ferrera has a bachelor’s degree in accounting from Bentley University and an MBA from Northwestern University’s Kellogg Graduate School of Management. Before attending college, Ferrera served in the United States Army Special Operations and Intelligence.
Jonathan Fitzpatrick is the President, Chief Executive Officer, and Director. Mr. Fitzpatrick has been the President and Chief Executive Officer since July 2012, a member of the board of directors since April 2018, and formerly a member of the board of management of Driven Investor LLC. Between February 2011 to June 2012, he served as Burger King’s Executive Vice President, Chief Brand and Operations Officer. He oversaw a flurry of activities, including the largest equipment and menu makeover in the brand’s history, the creation of new operational tools, and significant unit growth that affected operating and financial performance at the fast-food franchising behemoth. Fitzpatrick was born and reared in Dublin, Ireland, and earned his Bachelor’s and Master’s degrees at the University College Dublin.
Opinion: This heavily indebted company doesn’t look like it will every make enough money to pay off. This million dollar buy could be window dressing by someone that owns at least $2.3 million shares at the latest filing. This could be a short or long. Let’s ask ChatGPT. Just kidding.
Name: David J Henshall
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 20,000 Average Price Paid: $23.24 Cost: $464,800
Company: Everbridge Inc. (EVBG)
Everbridge is a worldwide software firm that enables resilience by employing intelligent automation technologies to help companies predict, mitigate, react to, and recover from catastrophic events to keep people safe and organizations operating. The Boston Consulting Group defines resilience as “a company’s ability to absorb stress, recover critical functionality, and thrive in changing circumstances.” Over 6,500 global customers rely on the Critical Event Management platform to empower their resilience during public safety threats such as severe weather, active shooter situations, terrorist attacks, or a pandemic, as well as critical business events such as information technology outages, cyber-attacks, product recalls, or supply-chain disruptions.
David Henshall is the Chairman of Everbridge’s Board of Directors. David rejoined the Everbridge Board of Directors as Vice Chairman in January 2022 and became Chairman a year later, having served as an Everbridge Director from 2015 to 2018. Mr. Henshall was President and CEO of Citrix Systems, a prominent global supplier of cloud computing and virtualization technologies, where he held managerial positions for over two decades. Mr. Henshall formerly served as Citrix’s Chief Operating Officer and Chief Financial Officer, supervising the company’s global finance, operations, and administrative organizations. Before joining Citrix, he was Chief Financial Officer of Rational Software Corporation, a software business bought by IBM Corporation.
Opinion: This sounds like it is a great idea. Why hasn’t it worked so far? The company dates all the way back to 2002.
Name: Michael I McCabe
Position: Head of Strategy
Transaction Date: 2023-05-30 Shares Bought: 80,000 Average Price Paid: $21.47 Cost: $1,717,800
Company: StepStone Group Inc. (STEP)
StepStone Group Inc is a worldwide private markets investment organization offering customers customized investment solutions and advisory, data, and administrative services. Some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds, and insurance companies are among the clients, as are prominent endowments, foundations, family offices, and private wealth clients, including high-net-worth and mass-affluent individuals. The firm collaborates with clients to establish and build private markets portfolios tailored to their individual goals across private equity, infrastructure, private debt, and real estate asset classes.
Mr. McCabe is the head of strategic planning at StepStone and a member of the private equity team. He is also a board of directors member and is active in numerous investment and risk management initiatives. Before joining StepStone in 2010, Mr. McCabe was a member of Hamilton Lane’s investment committee and helped supervise the firm’s secondary and co-investment practices, which are committed money from institutional investors. Before that, he was a director on the due diligence team of CEMEX SA de C.V., a worldwide construction materials firm. Mr. McCabe earned his bachelor’s degree from Drexel University and his MBA from Columbia Business School.
Opinion: Large buy- how does this work buying a partner to the private equity world?
Name: Michael Stuart Rosenthal
Position: Chief Operating Officer
Transaction Date: 2023-05-26 Shares Bought: 18,000 Average Price Paid: $21.21 Cost: $381,700
Company: MP Materials Corp. (MP)
MP Materials Corp. is the Western Hemisphere’s biggest producer of rare earth materials. The Mountain Pass Rare Earth Mine and Processing Facility, the only operating rare earth mining and processing facility of its magnitude in North America, is owned and operated by the company. It owns the mining rights to the Mountain Pass mine and nearby territories and intellectual property rights to rare earth minerals processing and development. The firm was established in 2017 and is based in Las Vegas, Nevada.
MP Materials’ Founder and Chief Operating Officer is Michael Rosenthal. He has been in charge of the Mountain Pass business since the Company purchased it in 2017. Before joining MP Materials, he was a Partner with QVT Financial, an investment management business. Mr. Rosenthal focused his efforts at QVT on investments in the global automotive industry and China. He formerly worked at Shenkman Capital Management as a senior high-yield credit analyst. Mr. Rosenthal earned an A.B. in Economics and Comparative Area Studies from Duke University.
Opinion: Rare earths and even rarer profits.
Name: Bernard Jr Lanigan
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 137,835 Average Price Paid: $15.24 Cost: $2,100,026
Company: CNX Resources Corp (CNX)
CNX Resources Corporation is a leading independent natural gas, and midstream firm focused on exploring, developing, producing, and purchasing Appalachian Basin natural gas holdings. Most of the activities focus on unconventional shale formations in Pennsylvania, Ohio, and West Virginia, especially the Marcellus Shale and Utica Shale. In addition, the firm owns and operates Coal Bed Methane holdings in Virginia. The company believes that its extensive held-by-production acreage position and development inventory, combined with its regional operating expertise, extensive data set from development and non-op participation wells, midstream infrastructure ownership, low-cost operations, and legacy surface acreage position, provide significant competitive advantages for long-term value creation.
Bernard Lanigan, Jr. was appointed to the CNX Board of Directors in May 2016. Mr. Lanigan is the current Chair of the Audit Committee and a member of the ESCR Committee and the NCG Committee. Since 1991, he has co-founded and served as Chairman and Chief Executive Officer of Southeast Asset Advisors, Inc., an investment adviser and wealth management firm. Mr. Lanigan contributes over four decades of leadership expertise with big, complex, and varied organizations to the Board. He is a certified public accountant with over 40 years of experience in financial, tax, accounting, investment advising, capital allocation, strategic consulting, risk assessment, valuations, and mergers and acquisitions matters in various industries, including energy.
Opinion: Nat gas everywhere, the trick is how to store it. Appalachians are full of it. I guess the Mountain Valley Pipe just greenlighted in the deficit reduction deal is good for CNX, better for EQT but natural gas price needs to go up to make these commodity linked investment plays work in this stock market.
Name: Gary Torgow
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 23,680 Average Price Paid: $10.56 Cost: $250,134
Company: Huntington Bancshares Inc (HBAN)
Huntington Bancshares Inc., a multi-state diversified regional Bank holding company headquartered in Columbus, Ohio, was founded under Maryland law in 1966. For over 150 years, the company has met its customers’ financial requirements via the Bank. Its subsidiaries provide full-service consumer and commercial banking, mortgage banking, vehicle, boat, equipment, and inventory financing, investment management, trust and brokerage services, insurance products and services, and other financial goods and services. By the end of 2021, the bulk of its 1,092 full-service branches and private client group offices will be in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, West Virginia, and Wisconsin. Other states also provide particular financial services and engage in other activities.
Mr. Torgow was appointed Huntington Bank’s board of directors chairman in June 2021. He was the executive chairman of TCF from September 2016 until the TCF merger in June 2021, and he was also the executive chairman of Talmer Bancorp Inc. until its merger with Chemical Financial Corporation in August 2019. Before joining Talmer, Mr. Torgow founded and led the Sterling Group, a Michigan-based real estate, development, and investment organization. Mr. Torgow serves on the DTE Energy Company and Blue Cross Blue Shield of Michigan boards. He is on the executive board of Business Leaders of Michigan, the Community Foundation for Southeast Michigan, and the Beaumont Health Board of Trustees.
Opinion: Banks, more banks, I really don’t know if there is a future for anything other than commercial bricks and mortar.
Name: Kenneth J McGrath
Position: Chief Financial Officer
Transaction Date: 2023-05-30 Shares Bought: 100,000 Average Price Paid: $4.93 Cost: $492,810
Company: Orasure Technologies Inc (OSUR)
Orasure Technologies Inc’s mission is to help the worldwide population enhance their health and fitness. In February 2023, it announced a corporate restructure that will merge the commercial and innovation teams from the two sectors into a single business unit comprising sales, marketing, product development, and research teams spanning numerous product lines. The Diagnostics business is primarily concerned with developing, manufacturing, marketing, and selling simple, easy-to-use diagnostic products and specimen collection devices based on proprietary technologies, as well as other diagnostic products such as immunoassays and other in vitro diagnostic tests used on other types of specimens. The Molecular Solutions company provides its goods and services to clients directly, largely via its sales staff in the United States and several other countries, as well as through distributors.
Kenneth J. McGrath was appointed Chief Financial Officer in August 2022. Mr. McGrath spent eight years with Quest Diagnostics, most recently as Vice President of Finance. He contributed to the development of Quest’s Advanced Diagnostics division, boosting growth while enhancing profitability via increased capabilities and innovation. His experience also involves creating value via collaborations and effectively appraising and integrating several acquisitions. Mr. McGrath’s financial and operational responsibility includes information technology, R&D, medical operations, and commercial areas. Before joining Quest, Mr. McGrath held numerous senior positions in finance and operations at Johnson & Johnson, Inc. He started his career with Ford Motor Company. He has an M.B.A. from the University of Michigan and a B.S. from the University of Notre Dame. He is a CFA Charterholder.
Opinion: Way confusing.
Name: Bruce K Thorn
Position: President & CEO
Transaction Date: 2023-05-31 Shares Bought: 51,000 Average Price Paid: $4.85 Cost: $259,045
Company: Big Lots Inc (BIG)
Big Lots, Inc., based in Ohio, is a home discount retailer in the United States. The company has 1,425 outlets and an e-commerce platform as of January 28, 2023. The company aims to assist individuals in living BIG and saving BIG. The firm manages its operations in one segment: cheap retailing. The firm uses the following seven-item categories consistent with the internal administration and reporting of merchandise net sales: Food; Consumables; Soft and Hard Home; Furniture; Seasonal; Apparel, Electronics, and Other. Beverage and grocery, specialty foods, and pet categories are all part of the Food category. The health, beauty, and cosmetics departments and plastics, paper, and chemical departments are all part of the Consumables category. The Soft Home category covers home décor departments, frames, fashion, practical bedding, bath, window, decorative textile, and area rugs. The company periodically assess, and make minor adjustments to, our product hierarchy, which can impact the roll-up of merchandise categories.
Bruce Thorn has served as President, CEO, and a member of the board of directors of Big Lots, Inc., since October 2018. Bruce formerly served as President and COO of Tailored Brands, the parent company of the Men’s Wearhouse, Joseph A. Bank, and Joseph Abboud brands, from 2015 until 2018. He was the driving force behind Tailored Brands’ successful transformation plan. Before entering the business world, Bruce was a captain in the United States Army’s 3-325 Airborne Battalion Combat Team in Vicenza, Italy. He is an airborne ranger who served in the Gulf War and was honorably retired in 1994. Thorn got a Bachelor of Science in Mechanical Engineering from the United States Military Academy at West Point before getting an MBA from the University of Cincinnati.
Opinion: Buying it before they go under themselves is a good idea?
Name: Adam D. Portnoy
Position: Director
Transaction Date: 2023-05-30 Shares Bought: 3,154,641 Average Price Paid: $1.38 Cost: $4,343,327
Company: Diversified Healthcare Trust (DHC)
Diversified Healthcare Trust is a real estate investment trust founded in Maryland in 1998. The corporation owns medical offices and life science assets, senior living communities, and other healthcare-related properties throughout the United States. As of December 31, 2022, the firm held 379 properties in 36 states and Washington, D.C., including eight shuttered senior living complexes. The business believes that the aging of the U.S. population favors its healthcare real estate portfolio. According to the business, this will raise demand for healthcare services and goods provided by tenants in the medical office and life science facilities.
Adam Portnoy has been a Managing Trustee since 2007 and Chair of the Board since 2019. He contributes knowledge and strategic vision to Diversified Healthcare Trust, one of the top owners of healthcare and life sciences real estate in the United States. Mr. Portnoy is the current President and CEO of The RMR Group Inc. and The RMR Group LLC. He is the RMR Executive Operating Committee’s Chair. Before joining RMR in 2003, Mr. Portnoy worked in the financial industry and the public sector, including as a banker at Donaldson, Lufkin & Jenrette, and ABN AMRO and as a private equity analyst at the International Financial Corporation. Mr. Portnoy earned a Bachelor of Public Policy from Occidental College in 1993.
Opinion: I’d rather buy HealthPeaks.
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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 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 a 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, are horrendously poor. Also, planned sales that pop up out of nowhere are basically sales and are seeking cover under this corporate welfare loophole. I also generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and perhaps not the smart money on which we are trying to read the tea leaves. I say generally because some 10% shareholders are great investors. Think Warren Buffett, Icahn, and others
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.
A big callout to my assistant Ambreen who sets up this conversation by listing the notable buys that I’ve identified. She probes the 10k for a reasonable description of the business. I’ve found that to be the most accurate and succinct place to find out what a business actually does. The websites and marketing material are just that, poorly disguised marketing material for many. I should know that better than most if you at my past involvement in building the 1st websites for many Fortune 500 companies.
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.
This blog is solely for educational purposes and the author’s own amusement. Don’t rely on this blog. Think of the blog as part of my personal investment journal that I am willing to share with the DIY investor. We welcome your comments on our analysis, but please do your own research. Investing with The Insiders Fund is for qualified investors and by Prospectus only. Nothing herein should be construed otherwise. THE INSIDERS FUND prefers to invest in companies at or near prices that management has been willing to invest significant amounts of their own money in, but we have no requirement to do so. We also invest in many companies in anticipation of future insider buying or with the expectation that there is none at all.
You can be an insider, too– by clicking here
Prosperous Trading,
