We look at insider buying this week before the potential shitstorm next week. It’s hard to believe that Longs can make money on the S&P 500 before a looming Fed Chairmen’s speech on Friday, August 25, at the annual Jackson Hole conference The central bankers, policymakers, and economists at Jackson Hole attempt to steer the global economy. Powell unveiled his Paul Volker channeling act last Summer, setting off a one thousand-point drop in the Dow. That’s too obvious a trade and likely crowded. If Powell is interpreted as anything dovish on the rate hikes, there could be a rip-your-face-off rally. But really, I don’t trust him. Raising interest rates like this is akin to bleeding the patient. I’ve blogged about this quite a bit.
I was particularly interested in MarketAxess and Sarepta insider buys last week. Some of the low-priced stocks insiders have recently purchased have offered traders a wild ride. Evolus, a Botox copycat drug, skyrocketed 28% after Director Malik purchased $1.3 Million worth of EOLS. Penny stock Strata Skin Sciences moved 16% higher. It’s no slam dunk, either. CEO Andrew Paradise did little to help his company’s stock, Skillz, with his $762k purchase down -28%.
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Name: Christopher R Concannon
Position: Chief Executive Officer
Transaction Date: 2023-08-14 Shares Bought: 4,270 Average Price Paid: $238.42 Cost: $1,018,060
Company: Marketaxess Holdings Inc (MKTX)
MarketAxess Holdings Inc. operates leading electronic trading platforms that provide clients with increased trading efficiency, a diverse pool of liquidity, and considerable cost reductions across the global fixed-income markets. Over 2,000 institutional investors and broker-dealer firms use their patented trading platform to efficiently trade US high-grade bonds, US high-yield bonds, emerging market debt, Eurobonds, municipal bonds, US government bonds, and other fixed-income securities. The company operates in a huge and quickly increasing market with substantial potential for expansion. They provide all-to-all trading and automated trading solutions for most of their products. They also offer integrated and actionable data services, such as Composite+TM and Axess All®, to help clients make real-time pricing, trading choices, and transaction cost analysis.
Christopher R. Concannon has been Chief Executive Officer since April 2023. Mr. Concannon was the President and Chief Operating Officer from January 2019 to April 2023. Mr. Concannon formerly served as President and Chief Operating Officer of Cboe Global Markets, Inc., one of the world’s major exchange holding companies, until 2019, a post he was appointed to following Cboe’s acquisition of Bats Global Markets, Inc. in 2017. Mr. Concannon was President of Bats from December 2014 to March 2015, Director from February 2015, and Chief Executive Officer from March 2015. Mr. Concannon has over 20 years of experience as an executive at Nasdaq, Virtu Financial, and Instinet, as well as an attorney at Morgan Lewis & Bockius and the SEC. Mr. Concannon earned a B.A. from Catholic University, an M.B.A. from St. John’s University, and a J.D. from Catholic University’s Columbus School of Law.
Opinion: There is the significant psychological motivation of a new CEO to buy some when its down to show confidence but in the case of MKTX, he’s been at the Company a long time. Listen to the CEO in the latest quarter webcast, make up your mind there. A lot of things are going right for MarketAxess . It’s no secret at 37 P.E ratio. According to MarketAxess’s 2022 Form 10-K, the company’s annual recurring revenue (ARR) was $1.78 billion as of December 31, 2022. The net retention ratio was 116% for the same period.
Name: Michael Andrew Chambers
Position: Director
Transaction Date: 2023-08-11 Shares Bought: 23,686 Average Price Paid: $108.05 Cost: $2,559,272
Company: Sarepta Therapeutics Inc. (SRPT)
Sarepta is a global biotechnology business with an urgent mission: to develop a precision genetic treatment for rare diseases that destroy lives and shorten people’s futures. They are a commercial-stage biopharmaceutical business that assists patients by discovering and developing novel RNA-targeted medicines, gene therapy, and other genetic therapeutic modalities for treating rare diseases. The company has developed multiple approved products for treating Duchenne muscular dystrophy using proprietary, highly differentiated, and innovative technologies and through collaborations with our strategic partners. The company is also working on AMONDYS 45, a product candidate that skips exon 45 of the dystrophin gene using phosphorodiamidate morpholino oligomer chemistry and exon-skipping technology.
Mr. Chambers co-founded Aldevron, based in Fargo, North Dakota, in 1998 and served as its CEO for more than 20 years until becoming Executive Chairman of the Board until Aldevron was acquired by Danaher Corporation in 2021. Mr. Chambers managed the rise of Aldevron into a world-class service organization specializing in nucleic acid and protein manufacturing, antibody research, and custom services with operations in the United States and Europe. He is currently a member of the Board of Directors at Calviri, Inc. Mr. Chambers was named one of the “100 Most Intriguing Entrepreneurs” by Goldman Sachs in 2018. He received his bachelor’s degree in biotechnology, microbiology, and chemistry from North Dakota State University.
Opinion: Chambers has been buying millions of dollars worth of Sarepta. His investment piques my interest as he is extremely knowledgeable about life sciences. I think the bet is can SRPT gene editing technology come up with a market bigger than rare diseases. Can they expand the age group of Duchenne patients so more people are covered? Well, I posed that question to BARD. How sustainable is a drug that costs $3.2 million per dose? I doubt if anyone knows the answer to the latter societal question.
Bard answered. I think that is a big part of the bet that Chambers is making. Sarepta’s gene editing technology has the potential to be used to treat a wide range of diseases, not just rare diseases like Duchenne muscular dystrophy. If Sarepta can successfully expand the age group of Duchenne patients that can be treated with its gene therapy, it could significantly increase the market for its products.
Currently, Sarepta’s gene therapy, ELEVIDYS, is only approved for the treatment of ambulatory pediatric patients aged 4 through 5 years with Duchenne. However, the company is conducting clinical trials of ELEVIDYS in older patients and in patients with other genetic mutations that cause Duchenne. If these trials are successful, Sarepta could expand the approval of ELEVIDYS to a wider range of patients, which would significantly increase the potential market for the drug.
In addition to expanding the age group of Duchenne patients that can be treated with its gene therapy, Sarepta is also developing gene editing therapies for other rare diseases, such as spinal muscular atrophy and cystic fibrosis. If Sarepta is successful in developing these therapies, it could create a large and growing market for its products.
Of course, there are no guarantees that Sarepta will be successful in expanding the market for its gene editing technology. However, the company has a strong track record of innovation and has made significant progress in developing gene editing therapies for rare diseases. Chambers’ investment in Sarepta suggests that he believes the company has the potential to be a major player in the gene editing field.
Here are some other factors that could affect the market for Sarepta’s gene editing technology:
- The development of new gene editing technologies by other companies.
- The regulatory environment for gene editing therapies.
- The cost of gene editing therapies.
- The willingness of patients and payers to adopt gene editing therapies.
Overall, the market for Sarepta’s gene editing technology is still in its early stages of development. However, the company has the potential to be a major player in this field if it is successful in expanding the age group of Duchenne patients that can be treated with its gene therapy and developing gene editing therapies for other rare diseases.
Name: Douglas J Treff
Position: Director
Transaction Date: 2023-08-18 Shares Bought: 2,114 Average Price Paid: $94.61 Cost: $200,016
Company: Crocs Inc. (CROX)
Crocs, Inc. and its consolidated subsidiaries design, market, distribute, and sell casual lifestyle footwear and accessories for women, men, and children worldwide. The company aims to be the global leader in creative casual footwear, blending comfort and beauty with consumer value. They have brands with broad democratic appeal and cheap price points corresponding to global megatrends like casualization and customization. The firm expanded its portfolio during the year by adding the HEYDUDE Brand. It is a wonderful fit for the Crocs Brand and long-term consumer trends due to its emphasis on casualization, comfort-led functionality, sustainability, and personalization.
Mr. Treff is the Senior Vice President and Chief Financial Officer of World Vision, Inc., a humanitarian and development organization. From September 2007 to July 2015, he was Executive Vice President, Chief Administrative Officer of Payless Holdings, Inc., and its Chief Financial Officer from 2012 to 2015. Payless declared bankruptcy following Mr. Treff’s resignation in 2017. From 2006 until 2007, Mr. Treff was Executive Vice President and Chief Administrative Officer of Sears Canada Inc., having been sent to Sears Canada by Sears Holdings. From 2000 through 2006, Mr. Treff was Deluxe Corporation’s Senior Vice President and Chief Financial Officer. From 1990 to 2000, he served as Chief Financial Officer and various financial leadership posts at Wilsons The Leather Experts Inc., including Vice President of Finance since 1993 and Chief Financial Officer and Assistant Secretary since 1996.
Opinion: Crocs has fans and competition. My fiancé showed me her Birkenstocks she loves more than her Crocs. Remember fanboys-Fashion is fickle.
Name: William E Haslam
Position: Director
Transaction Date: 2023-08-14 Shares Bought: 11,507 Average Price Paid: $86.90 Cost: $999,924
Company: Ryman Hospitality Properties Inc. (RHP)
Ryman is a Delaware corporation that began functioning on January 1, 2013, as a self-advised and self-administered REIT for federal income tax purposes. The company specializes in group-oriented, destination hotel assets in the urban and resort markets. REITs are generally exempt from federal corporate income taxes based on the capital gain or ordinary income from REIT operations given to investors. Their non-REIT operations, which include TRSs that lease or sublease the hotels from their qualifying REIT subsidiaries and businesses in the Entertainment sector, are still subject to federal and state corporate income taxes, as applicable. The company-owned assets include a network of five upmarket, meetings-focused resorts with a total capacity of 9,917 rooms managed by Marriott under the Gaylord Hotels brand.
William E. Haslam has been a private investor since 2019. Mr. Haslam served as the Governor of Tennessee from 2011 to 2019. Mr. Haslam was the Mayor of Knoxville, Tennessee, from 2003 until 2011. Mr. Haslam was the Chief Executive Officer of Saks Fifth Avenue’s e-commerce and catalog division from 1999 to 2001. Mr. Haslam worked for travel center operator Pilot Corporation from 1980 to 1999, finally rising to the position of President.
Opinion: I can’t get excited about this with so many REITS and interest rates vehicles under siege.
Name: James Lawrence Camaren
Position: Chief Executive Officer
Transaction Date: 2023-08-15 Shares Bought: 4,000 Average Price Paid: $67.85 Cost: $271,400
Company: Nextera Energy Inc (NEE)
NEE is one of North America’s leading electric power and energy infrastructure corporations and a pioneer in the renewable energy market. FPL and NEER are NEE’s two main companies. NEER is the world’s largest wind and solar energy generator and a global pioneer in battery storage. NEER’s strategic focus is on developing, constructing, and managing long-term contracted assets in the United States and Canada, primarily renewable generation facilities, battery storage projects, and electric transmission lines. In January 2019, NEE bought Gulf Power Company, a rate-regulated electric utility in northwest Florida that generates, transmits, distributes, and sells electricity. FPL and Gulf Power Company combined on January 1, 2021, with FPL surviving. However, FPL was still regulated as two independent rate-making companies in the former service areas of FPL and Gulf Power Company in 2021.
Mr. Camaren is a business owner. He was the chairman and CEO of Utilities, Inc. from March 2002 to May 2006, when it was acquired by Nuon, a Dutch firm that later sold Utilities, Inc. He joined Utilities, Inc. in 1987 and became vice president of business development, executive vice president, and vice chairman before being named chairman and CEO in 1996. Since 2002, Mr. Camaren has served as a director of NextEra Energy.
Opinion: I’m a keen believer in the value of monopoly like electric utility companies. The Maui fire and the responsibility of public utilities to provide safe electricity with all the new risks from climate change, wild fires, flooding, and hurricanes combined with the Fed’s attack on the interest structure makes the whole sector uninvestable at the moment.
Name: Laurie Anne Tucker
Position: Director
Transaction Date: 2023-08-17 Shares Bought: 4,000 Average Price Paid: $61.23 Cost: $244,920
Company: Forward Air Corp (FWRD)
Forward Air Corporation is a leading asset-light freight and transportation firm. The company provides less-than-truckload, final mile, truckload, and intermodal drayage services throughout the United States and Canada. They provide premium services that require precision execution, such as expedited transit, delivery within tight time frames, and unique handling. They employ an asset-light strategy to cut capital expenditures by minimizing investments in equipment and facilities. On October 23, 1981, Forward Air was incorporated under the laws of Tennessee. The Company decided to sell Pool on April 23, 2020, and the sale was completed on February 12, 2021. As a result, Pool’s earnings were classified as “Loss from discontinued operation, net of tax” in the Consolidated Statements of Comprehensive Income for the fiscal year ended December 31, 2021.
Mrs. Tucker has been the Founder and Chief Strategy Officer of Calade Partners LLC since January 2014. She worked as the Senior Vice President, Corporate Marketing of FedEx Services, Inc., a part of FedEx Corporation, from 2000 until her retirement in December 2013. Since 1978, she has worked for FedEx in various capacities with growing expertise and responsibility. Mrs. Tucker has been a director of Alliance Data Systems since May 2015. She served as a director of Iron Mountain Incorporated from May 2007 to May 2014. Mrs. Tucker graduated from the University of Memphis with a B.B.A. in Accountancy and an M.B.A. in Finance.
Opinion: Small buy after large price collapse. Show me more Mrs. Tucker and I mean cash.
Name: Daniel Patrick Gibson
Position: 10% Owner
Transaction Date: 2023-08-14 Shares Bought: 63,672 Average Price Paid: $60.51 Cost: $3,852,793
Company: Impinj Inc (PI)
Transaction Date: 2023-08-11 Shares Bought: 263,740 Average Price Paid: $58.26 Cost: $15,365,492
Company: Impinj Inc (PI)
The Impinj platform is a framework for creating IoT solutions that connect physical objects to the cloud. Their platform gives data that enables you to analyze, optimize, and virtualize everything using RAIN RFID. The company and its partners connect the products using a small radio chip embedded in the item or its packaging, which reads and transmits each item’s identification, location, and authenticity. The company platform employs RAIN, a radio-frequency identification or RFID technology we invented. They pushed the RAIN radio standard’s creation, lobbied governments to allocate frequency spectrum, and cofounded the RAIN Alliance, which now has over 150 member companies. RAIN’s capabilities, particularly endpoint ICs with serialized identifiers for individual items, battery-free operation, 30-foot range, not-in-line-of-sight readability, up to 1,000 reads per second, low cost, essentially unlimited life, and available cryptographic authentication; they believe, position RAIN to be the leading item-to-cloud connectivity technology for the IoT.
Daniel Gibson has been a board of directors member since June 2018. Mr. Gibson is a founding partner of Sylebra Capital Management and has been a portfolio manager since June 2011 and chief investment officer since January 2018. Sylebra Capital Management is a Hong Kong-based investment management with a global concentration on the technology, media, and telecommunications industries. Before that, he worked as a partner and analyst at Coatue Capital from 2008 until 2011. From 2006 until 2008, he worked as an associate at Calera Capital, a Boston-based private equity firm. He began his career in the media group at UBS Investment Bank in New York. Mr. Gibson earned a B.A. in economics from Amherst College.
Opinion: Hedge fund putting down some markers. I imagine management needs to add to their bets before I bet meaningfully on the turn. I expect Sanghi putting in more money soon in this industry visionary.
Name: Harry M Jansen Jr Kraemer
Position: Director
Transaction Date: 2023-08-11 Shares Bought: 55,000 Average Price Paid: $34.63 Cost: $1,904,518
Company: Option Care Health Inc. (OPCH)
Option Care Health, Inc. is the biggest independent supplier of home and alternate site infusion treatments, with 163 facilities in 44 states. Option Care Health draws on over 40 years of clinical experience to provide patient-centered, cost-effective infusion therapy. Option Care Health’s infusion services include the clinical management of infusion therapy, nursing support, and care coordination. Option Care Health’s interdisciplinary team of over 4,500 clinicians, including pharmacists, pharmacy technicians, nurses, and nutritionists, can provide infusion service coverage to nearly all United States patients requiring treatment for complicated and chronic medical illnesses.
Harry M. Jansen Kraemer, Jr. joins the Board with over 30 years of executive leadership experience, including as chairman, president, and CEO of a large international public company, as well as extensive financial expertise and significant experience with boards of directors of private and public companies, investment decisions, capital allocation activities, and complex transactions at both large companies and in private equity. He also has extensive expertise in the health industry and technology and innovation from his experience at biotechnology and pharmaceutical firms.
Opinion: Insider buying is invariably bullish. Some buys like buying at near 52 week highs are more bullish than other.
Name: Brady D Ericson
Position: President and CEO
Transaction Date: 2023-08-11 Shares Bought: 13,194 Average Price Paid: $28.92 Cost: $381,570
Company: Phinia Inc. (PHIN)
Phinia Inc. The accompanying Condensed Combined Financial Statements and Notes exhibit the condensed combined statements of operations, balance sheets, and cash flows of BorgWarner Inc.’s Fuel Systems and Aftermarket businesses. PHINIA is a leader in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial vehicles and industrial applications. The Company is a global supplier to most major original equipment manufacturers looking to fulfill and surpass increasingly severe global regulatory requirements while satisfying customer desires for a better user experience. Furthermore, the Company provides a comprehensive range of original equipment servicing solutions and remanufactured items and an expanded range of products for the independent aftermarket.
Brady D. Ericson is the President, Chief Executive Officer, and Director of PHINIA, Inc. Mr. Ericson also serves as Vice President of BorgWarner, Inc. He formerly held the positions of President and General Manager at BorgWarner Emissions Systems LLC, President and General Manager at BorgWarner Ludwigsburg GmbH, and Vice president of Manufacturing Strategies at BorgWarner Turbo & Emission Systems. Brady D. Ericson earned his bachelor’s degree from Kettering University and his MBA from Duke University.
Opinion: I gave Bing and Bard, the same prompt “ What are the investment prospects for Phinia (PHIN), a spinoff of BorgWarner Inc.’s Fuel Systems and Aftermarket businesses? What management came with it or stayed with Borg Warner?
Phinia (PHIN) is a spinoff of BorgWarner Inc.’s Fuel Systems and Aftermarket businesses that became a publicly traded company (NYSE: PHIN) in 20231. It has a brand portfolio that includes Delphi Technologies, Delco Remy and Hartridge2. It is the partner of choice to an array of industrial and aftermarket customers, and it is poised to continue to outgrow the market over the next two to three years2. Its CEO is Brady D. Ericson, who successfully led the spin-off from BorgWarner and has extensive senior leadership, strategic planning, operational and business experience in the global automotive industry1. Its CFO is Chris Gropp, who joined BorgWarner in 2001 and brings corporate finance and accounting expertise at a global scale to the new organization1.
The investment prospects for Phinia (PHIN) are mixed. On the one hand, the company is a leader in premium fuel systems, electrical systems, and aftermarket products, with a strong customer base in the automotive industry. It also has a good track record of innovation, with a number of patents in its portfolio.
Bard responded, On the other hand, Phinia is facing some challenges. The automotive industry is undergoing a major transformation, as automakers shift to electric vehicles. This is a threat to Phinia, as its products are more heavily used in internal combustion engines. The company is also facing rising costs, due to inflation and supply chain disruptions.
Overall, the investment prospects for Phinia are uncertain. The company has a good foundation, but it is facing some challenges. Investors should carefully consider the risks and rewards before investing in PHIN.
Name: James Joseph IV Kilroy
Position: Director
Transaction Date: 2023-08-08 Shares Bought: 2,400 Average Price Paid: $19.02 Cost: $45,647
Company: Healthcare Realty Trust Inc (HR)
Name: John Knox Singleton
Position: Director
Transaction Date: 2023-08-16 Shares Bought: 31,500 Average Price Paid: $17.11 Cost: $538,965
Company: Healthcare Realty Trust Inc (HR)
Healthcare Realty Trust Inc. is a self-managed and self-administered real estate investment trust that owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties in the United States that are primarily associated with the delivery of outpatient healthcare services. The Company is structured to qualify as a REIT for federal income tax reasons. As a REIT, the Company is exempt from corporate federal income tax on taxable income delivered to investors. Over time, the Company’s portfolio has shifted predominantly towards multi-tenant, on-campus medical office buildings that offer stable occupancy, strong tenant retention, and consistent growth. Healthcare Realty’s portfolio is broadly diversified by region, tenant size, and physician specialization, thanks to the careful acquisition and development of outpatient buildings.
Mr. James J. Kilroy is the President and Portfolio Manager at Willis Investment Counsel, Inc. He serves on the board of directors of Healthcare Realty Trust, Inc. Mr. Kilroy’s time at Abingdon Capital Management was preceded by two years as an equity research analyst at Bear, Stearns & Co., covering the multi-industrials sector, and four years as an investment banker with SunTrust Equitable Securities. Mr. Kilroy is a Healthcare Realty Trust, Inc. board of directors member. Healthcare Realty is a publicly traded Real Estate Investment Trust specializing in owning, operating, acquiring, and developing outpatient medical facilities across the United States. Mr. Kilroy has a Bachelor of Science in Business Administration from the University of North Carolina at Chapel Hill’s Kenan-Flagler School of Business and an MBA from Northwestern University’s Kellogg School of Management.
John Knox Singleton is a businessman who has led six separate enterprises. He serves as the Chairman of Healthcare Realty Trust, Inc. Mr. Singleton also serves on Pneuma Respiratory, Inc. and Washington Mutual Investors Fund boards. He previously held the positions of Chairman of HRTI LLC, Director of Inova Health System Services, President and Chief Executive Officer of Inova Health System Foundation, and President of Inova Health Care Services. Mr. Singleton holds a bachelor’s degree from the University of North Carolina at Asheville and a master’s degree from Duke University.
Opinion: A dividend yield of 7.36% looks on the surface very attractive considering the stable nature of the underlying businesses.
Name: Alain Monie
Position: Director
Transaction Date: 2023-08-16 Shares Bought: 27,400 Average Price Paid: $18.27 Cost: $500,598
Company: Aes Corp (AES)
AES, established in 1981, is a global energy corporation dedicated to advancing the future of energy. They improve lives by bringing greener, smarter energy solutions to the world in collaboration with their stakeholders. Their diverse workforce is committed to continuous innovation and operational excellence while engaging with clients on strategic energy transitions and managing their current demands. AES is an industry leader in developing and deploying technologies that will enable the transition to zero and low-carbon energy sources and achieve the Paris Agreement’s goal of net-zero emissions by 2050. They now perceive a vast economic potential from the once-in-a-lifetime revolution in the electrical sector, driven by decarbonization, electrification, and digitization.
Alain Monié has been an AES Director since July 2017 and is a member of the Governance Committee, the Innovation and Technology Committee, and the Compensation Committee of the Board. Mr. Monié is the Executive Chairman of Ingram Micro Inc., a pioneer in supplying the complete spectrum of global technology and supply chain solutions to organisations throughout the world, as of 2022. Monié formerly worked as a controller for Renault and had general management positions with the French aerospace business Sogitec Inc. While serving in the military, he began his profession as an engineer in Mexico. Mr. Monié graduated with honours from the Institut Supérieur des Affaires in Jouy-en-Josas, France. He received honours in his studies in automation engineering at the École Nationale Supérieure d’Arts et Métiers in Bordeaux and Paris.
Opinion: I’m a keen believer in the value of monopoly like electric utility companies. The Maui fire and the responsibility of public utilities to provide safe electricity with all the new risks from climate change, wild fires, flooding, and hurricanes combined with the Fed’s attack on the interest structure makes the whole sector uninvestable at the moment.
Name: Mark L Baum
Position: Chief Executive Officer
Transaction Date: 2023-08-14 Shares Bought: 5,800 Average Price Paid: $17.05 Cost: $98,890
Company: Harrow Health Inc. (HROW)
Name: Martin A. Makary
Position: Director
Transaction Date: 2023-08-14 Shares Bought: 20,000 Average Price Paid: $16.92 Cost: $338,400
Company: Harrow Health Inc. (HROW)
Harrow is a pharmaceutical business that focuses on ophthalmology. Through the subsidiaries and deconsolidated companies, the company specializes in developing, producing, marketing, and distributing novel prescription pharmaceuticals that provide distinct competitive advantages and meet unmet market demands. They provide ophthalmologists and optometrists with FDA-approved branded ophthalmic drugs and unique compounded prescription medicines. ImprimisRx, one of the nation’s major ophthalmology-focused pharmaceutical-compounding enterprises, is owned and operated by them, and their branded medications are distributed under the Harrow brand.
Mr. Baum has worked hard to align his professional and personal principles. Mr. Baum grew up in Houston and attended Sharpstown High School. Mr. Baum founded YesRx, an online pharmacy treating HIV-positive Californians, in 1999 after graduating from university and law school and passing the California Bar Exam. Mr. Baum capitalized on his first investment fund. He began ten years managing capital as a major investor, participating in more than 200 equity and debt transactions, thanks to the success of YesRx. Mr. Baum launched Imprimis Pharmaceuticals, Inc. and its subsidiary ImprimisRx 2011 to give patients and clinicians cheap access to new prescription drugs. Mr. Baum now serves as the Chairman and CEO of Harrow.
Marty Makary, M.D., M.P.H., has been a company director since March 2022. Dr. Makary is a physician and the Chief of Islet Transplant Surgery at The Johns Hopkins Hospital, where he has worked since 2002. Dr. Makary is a frequent media public policy expert and a notable medical advocate, writing for The Wall Street Journal. He is the author of two New York Times bestselling healthcare books. He has authored over 250 scientific peer-reviewed articles on organizational culture, surgical innovation, vulnerable populations, and healthcare delivery redesign. Dr. Makary has served on the World Health Organization’s leadership team and has been elected to the National Academy of Medicine. He holds a B.S. from Bucknell University, an M.D. from Thomas Jefferson University, and a Master of Public Health from Harvard University, with a concentration in Health Policy.
Opinion: Nothing to get too excited about here.
Name: Nicolas Finazzo
Position: Chairman & Chief Executive Officer
Transaction Date: 2023-08-15 Shares Bought: 116,316 Average Price Paid: $11.60 Cost: $1,348,810
Company: AerSale Corp (ASLE)
AerSale is a global leader and market pioneer specializing in aviation products and services to fulfill the growing demand for aftermarket support in the global passenger, cargo, and government segments. AerSale provides full-service support for aircraft owners and operators throughout the complete range of flying equipment, from total aircraft support to individual components. Working in tandem, their integrated business units create a real one-stop shop dedicated to saving the customers time and money.
Nicolas Finazzo has worked in aircraft leasing, financing, maintenance, and airline operations for over 30 years. Nicolas founded a commercial aircraft leasing company early in his career, which later grew into the regional air carrier Air Florida Commuter. He joined International Air Leases as Vice President in 1992 and was elevated to Corporate General Counsel in 1994, controlling a commercial aircraft portfolio of 200 aircraft. In 1997, he cofounded and became CEO of AeroTurbine, Inc., the first non-OEM aftermarket start-up to merge aircraft and engine sales, leasing, parts sales, and aviation MRO into a single integrated platform. Nicolas graduated from the University of Miami School of Law with a J.D. and a B.S. in Political Science. He is a member of the Florida Bar in good standing and holds an FAA Airframe and Powerplant license.
Opinion: Pretty big purchase from the CEO which likely marks a trough in the sales cycle.
Name: John David Risher
Position: Chief Executive Officer
Transaction Date: 2023-08-11 Shares Bought: 100,000 Average Price Paid: $11.46 Cost: $1,146,300
Company: Lyft Inc. (LYFT)
Name: Dave Stephenson
Position: Director
Transaction Date: 2023-08-11 Shares Bought: 8,826 Average Price Paid: $11.33 Cost: $99,998
Company: Lyft Inc. (LYFT)
Lyft, Inc. pioneered a transportation revolution. They established the peer-to-peer marketplace for on-demand ridesharing in 2012 and have since continued to pioneer ideas that align with their vision. Lyft is now one of the most extensive multimodal transportation networks in the United States and Canada. The world is on the verge of transitioning from car ownership to Transportation-as-a-Service. Lyft is at the vanguard of this major cultural shift. The company ridesharing marketplace helps riders to drive less. It provides a viable alternative to car ownership while giving drivers who utilize their platform the freedom and independence to choose when, where, how long, and on what platforms they work. As the change of transport continues, they can improve riders’ lives by linking them to more inexpensive and convenient transit options.
Mr. Risher has been the Chief Executive Officer and board of directors member since July 2021. Mr. Risher co-founded Worldreader, a non-profit organization, and has served as its C.E.O. from November 2009 to April 2023 and its Board President from March 2010. Mr. Risher previously worked as Senior Vice President of U.S. Retail at Amazon.com, Inc., an e-commerce corporation. Before joining Amazon, he worked for Microsoft Corporation as a General Manager. Mr. Risher currently serves on several privately held and non-profit boards of directors. Mr. Risher graduated from Princeton University with a B.A. in Comparative Literature, an M.B.A. from Harvard Business School, and an honorary Ph.D. from Wilson College.
Mr. Stephenson has been a board of directors member since February 2023. Mr. Stephenson has been the Chief Financial Officer of Airbnb, Inc. since January 2019 and the Head of Global Employee Experience since August 2021. Before joining Airbnb, Mr. Stephenson worked for Amazon.com, Inc. for 17 years, most recently as Vice President and Chief Financial Officer of their Worldwide Consumer Organisation from June 2015 to December 2018. Before that, from September 2013 to June 2015, Mr. Stephenson was the Chief Financial Officer of Amazon’s International Consumer business, overseeing finance in several sectors of the firm. From September 2011 through September 2013, Mr. Stephenson was the President and Chief Financial Officer of Big Fish Games, Inc., a gaming firm. Mr. Stephenson has a B.S. in Industrial and Management Engineering from Montana State University and an M.B.A. from the University of Iowa.
Opinion: Will Lyft and Uber every make any real money before autonomy swallows them whole?tgtx
Name: Michael S Weiss
Position: CEO and President
Transaction Date: 2023-08-11 Shares Bought: 100,000 Average Price Paid: $10.13 Cost: $1,013,000
Company: TG Therapeutics Inc. (TGTX)
TG Therapeutics is a biopharmaceutical firm that focuses on acquiring, developing, and commercializing innovative medicines for B-cell disorders. In addition to a research pipeline that includes several investigational medicines, TG has received FDA approval for BRIUMVITM for the treatment of adult patients with relapsing forms of multiple sclerosis, which includes clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease. They also continuously evaluate related goods, technologies, and companies for in-licensing, partnership, acquisition, and investment opportunities.
Michael S. Weiss started the company and has been its Chairman, President, and CEO since December 2011. Before establishing TG, Weiss founded and served as CEO of ACCESS Oncology in 1999, which merged with Keryx Biopharmaceuticals in 2004, where he remained Chairman and CEO until mid-2009. Weiss purchased and developed AURYXIA during his tenure, which is now approved for treating dialysis patients. Before creating ACCESS Oncology, Mr. Weiss worked as a lawyer and subsequently as an investor in biotech venture capital. Mr. Weiss remains committed to assisting early-stage biotech firms and currently serves as Vice Chairman of Fortress Biotech and Chair of Checkpoint Therapeutics and Mustang Bio.
Opinion: Early state biotech has a product on the market, BRIUMI, which in the latest quarter CEO Weiss said,” anticipates that our cash, cash equivalents and investment securities as of June 30, 2023, combined with the upfront payment of $140.0 million received as part of our ex-U.S. commercialization agreement and projected revenues associated with the sale of BRIUMVI in the U.S. and ex-U.S., will be sufficient to fund our planned operations for the foreseeable future.
Name: Vikram Malik
Position: Director
Transaction Date: 2023-08-15 Shares Bought: 174,967 Average Price Paid: $7.41 Cost: $1,296,505
Company: Evolus Inc. (EOLS)
Evolus is a performance beauty company that focuses on producing innovative solutions in the self-pay aesthetic industry. Jeuveau®, the first commercial product, is a 900 kilodalton (kDa) pure botulinum toxin type A formulation suggested for temporarily treating moderate to severe glabellar lines, popularly known as “frown lines,” in adults. The company’s primary market is the self-pay aesthetic market, which consists of medical products purchased by physicians and other customers and then sold to consumers or used in procedures for aesthetic indications that are not reimbursed by any third-party payor, such as Medicaid, Medicare, or commercial insurance. With Jeuveau®, they think they provide a compelling value proposition to customers and consumers.
Vikram Malik founded Accesselite. Mr. Malik is currently the Chairman of Evolus, Inc., the Chair Investment Committee of South Coast Angel Fund LLC, and the Chairman & Chief Financial Officer of Alphaeon Credit, Inc. Mr. Malik also serves on the boards of five other corporations. He previously worked as a Principal at UBS Capital Americas LLC, Managing Partner at Strathspey Crown LLC, President and director at Priveterra Acquisition Corp., Vice Chairman-Investment Banking at Deutsche Bank Securities, Inc., Managing Partner at Strathspey Crown Holdings LLC, Managing Director at Banc of America Securities LLC, Principal at J.P. Morgan Partners LLC, Principal at Commerzbank Securities, Principal at Credit Suisse Strategic Partners, and Principal at Merrill Lynch. Mr. Malik earned an undergraduate degree from the University of Delhi and an MBA from Boston University.
Opinion: It’s been hard going competing against Botox.
Name: Godfrey Sullivan
Position: Director
Transaction Date: 2023-08-15 Shares Bought: 200,000 Average Price Paid: $5.88 Cost: $1,176,000
Company: Marqeta Inc. (MQ)
Name: Judson C Linville
Position: Director
Transaction Date: 2023-08-15 Shares Bought: 34,000 Average Price Paid: $5.86 Cost: $199,393
Company: Marqeta Inc. (MQ)
Marqeta invented contemporary card issuing at the heart of today’s digital economy. Marqeta’s modern card issuing platform enables customers to generate customized and creative payment cards, allowing them to offer more configurable and adaptable payment experiences. Marqeta’s open APIs provide quick access to highly scalable, cloud-based payment infrastructure, allowing customers to start and administer their own card programs, issue cards, and authorize and settle payment transactions. Marqeta is the first firm to offer a platform for modern card issuance and transaction processing, and they think they are also the first to market with many issuing and processing breakthroughs, such as the first open APIs, JIT Funding, and Tokenization as a Service.
Mr. Sullivan has been a member of our board of directors since May 20, 2021. Mr. Sullivan served as President and Chief Executive Officer of Splunk, Inc., a publicly traded big data company, from September 2008 to November 2015. Before Splunk, Mr. Sullivan held several executive roles at Hyperion Solutions Corporation, a performance management software company acquired by Oracle Corporation in April 2007, most recently as President and Chief Executive Officer from October 2001 to April 2007. Mr. Sullivan has served as a member of the board of directors of CrowdStrike Holdings, Inc., a publicly traded cybersecurity company, since December 2017, Ring Central, Inc., a publicly traded software-as-a-service solutions provider, since April 2019, and Gitlab Inc., a publicly traded DevOps platform company, since January 2020. Mr. Sullivan holds a Bachelor of Business Administration in Real Estate and Economics from the Hankamer School of Business at Baylor University.
Mr. Linville has been on our board of directors since May 2020. Mr. Linville has been a Senior Advisor at General Atlantic LLC, a worldwide growth equity firm, since October 2019. From November 2010 to September 2018, he was the Chief Executive Officer of Global Cards and Consumer Services at Citigroup Inc., a publicly traded global financial services corporation. From October 1989 to October 2010, Mr. Linville held various leadership positions at American Express Company, a publicly traded multinational financial services corporation, including President and Chief Executive Officer of Consumer Services, President of the U.S. Consumer Card Services Group, and President of Corporate Services. Mr. Linville has a Doctor of Psychology in Clinical Psychology from Drexel University’s College of Medicine and a Bachelor of Arts in Psychology from Lafayette College.
Opinion: Marquis names have not been able to do much for the shareholders. Maybe this time is different?
Name: Matthew W Foehr
Position: President and CEO
Transaction Date: 2023-08-14 Shares Bought: 45,000 Average Price Paid: $5.48 Cost: $246,600
Company: OmniAb Inc. (OABI)
OmniAb is the industry’s only solution with numerous transgenic animal species specifically designed to utilize the unprecedented power of Biological Intelligence optimally. The OmniAb technology platform generates and analyses multiple antibody repertoires to swiftly find appropriate antibodies for their client’s drug development efforts. The company combines the power of Biological IntelligenceTM, which they created into the patented transgenic animals, with high-throughput screening tools to enable the discovery of high-quality, fully human antibody therapy candidates. These antibodies are of good quality since they are naturally optimized in patented methods for affinity, specificity, developability, and functional performance.
Matthew W. Foehr, President and CEO of OmniAb and a member of the Board of Directors, has over 25 years of experience in the pharmaceutical sector, supervising operations, technological development, and global R&D programs. Mr. Foehr was previously the President and Chief Operating Officer of Ligand Pharmaceuticals from 2015 to 2022, and before that, the Executive Vice President and Chief Operating Officer of Ligand since 2011. He was previously Vice President and Head of Consumer Dermatology R&D at GlaxoSmithKline’s Stiefel division and Acting Chief Scientific Officer of Dermatology. Mr. Foehr serves on the board of directors of Viking Therapeutics, Inc., a publicly traded biotechnology company, and formerly served on the board of Ritter Pharmaceuticals, Inc. from 2015 until its merger with Qualigen Therapeutics, Inc. in 2020. Mr. Foehr graduated from Santa Clara University with a BS in biology.
Opinion:
Name: Albert P. Behler
Position: Chairman, CEO and President
Transaction Date: 2023-08-16 Shares Bought: 70,000 Average Price Paid: $4.66 Cost: $326,490
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. They are the sole general partner of the Operating Partnership and owned about 93.7% of it as of December 31, 2022. The company also has an investment management division serving as the general partner of many real estate-related funds for institutional investors and high-net-worth individuals. They consider the staff to be the most valuable asset. Their continuing success and expansion largely depend on their employees’ efforts and our ability to attract and keep highly skilled staff. The operational and financial success depends on their abilities, enthusiasm, experience, and well-being.
Albert P. Behler is a businessman who has led five separate enterprises. He is currently the Chairman, President, and Chief Executive Officer of Paramount Group, Inc., the Co-Managing Director of Paramount Real Estate Fund I GmbH & Co. KG, and the President and Chief Executive Officer of Paramount Group. He was previously the Managing Director of Thyssenkrupp Elevator Saudi Co. Ltd., the President of Thyssen Rheinstahl Tecknik Co., a member of The Samuel Zell & Robert Lurie Real Estate Centre, the Managing Director of Thyssen Saudia Co. Ltd., the Principal of Thyssen Handelsunion AG, the Chairman of the Association of Foreign Investors in Real Estate, and a member of Greenprint Foundation. Mr. Behler holds an MBA from Georgia State University and a master’s degree from Universität zu Köln.
Opinion: Do you want to bet on the bottoming of the office market in San Francisco? Then this is your play.
Name: Steven Frank
Position: Director
Transaction Date: 2023-08-14 Shares Bought: 400,000 Average Price Paid: $1.72 Cost: $688,000
Company: Precigen Inc.(PGEN)
Precigen is a dedicated discovery, and clinical-stage biopharmaceutical firm focused on developing the next generation of gene and cell therapies to improve outcomes for patients with major unmet medical needs. In the main therapeutic areas of immuno-oncology, autoimmune disorders, and infectious illnesses, they use their technological platforms to develop pharmaceutical candidates that tackle urgent and intractable diseases. Within these primary target areas, they have created a robust pipeline of medicines for various indications. The company’s diverse technology platforms distinguish it from other biotechnology firms in their quest to enhance precision medicine. We have created the UltraPorator, a patented electroporation equipment designed to streamline further and ensure the speedy and cost-effective production of UltraCAR-T treatments.
Mr. Frank has been a member of the Board since February 2008. Mr. Frank joined J.P. Morgan Securities LLC, an investment bank, in June 2008 and is currently the Chairman of Global Healthcare Investment Banking. Mr. Frank formerly served as the head of Bear Stearns’ Worldwide Health Care Investment Banking department in New York for 16 years, providing general investment banking services to all healthcare corporations. Mr. Frank has led or played key roles in hundreds of mergers and acquisitions and financing transactions across various deal formats. He has specialized in deals involving the pharmaceutical, medical device, and biotechnology industries. Before joining Bear Stearns in 1993, Mr. Frank worked as an institutional investor for nearly ten years, mostly at State Farm Insurance Company, where he focused on a multibillion-dollar life-sciences portfolio. Mr. Frank has a B.S. from Illinois State University and an M.B.A. from the University of Chicago.
Opinion: another binary bet ain’t where you want to be right now.
Name: David Lamond
Position: Director
Transaction Date: 2023-08-15 Shares Bought: 250,000 Average Price Paid: $1.30 Cost: $325,737
Company: Quince Therapeutics Inc. (QNCX)
Name: Thye Dirk
Position: Chief Executive Officer
Transaction Date: 2023-08-10 Shares Bought: 88,000 Average Price Paid: $1.26 Cost: $110,880
Company: Quince Therapeutics Inc. (QNCX)
Transaction Date: 2023-08-08 Shares Bought: 80,000 Average Price Paid: $1.24 Cost: $99,200
Company: Quince Therapeutics Inc. (QNCX)
Quince Therapies Inc. is a preclinical-stage biopharmaceutical company focused on creating innovative precision medicines for chronic and rare diseases. Since its inception, the organization has focused on creating treatment ways to improve the lives of those suffering from Alzheimer’s and other degenerative diseases. Cortexyme, Inc., their predecessor firm, was built on the important finding of Porphyromonas gingivalis and its secreted toxic virulence factor proteases, known as gingipains, in Alzheimer’s and Parkinson’s disease patients’ critical brain areas. With the acquisition of Novosteo, Inc. in 2022 and the addition of new executive management, they have been able to strategically shift their focus and prioritize the internal development of an innovative bone-targeting drug platform and lead compound NOV004 for the treatment of rare skeletal diseases, bone fractures, and injury.
David A. Lamond joined Quince Therapeutics’ Board of Directors in December 2015 and currently serves as its Chairperson. Mr. Lamond has been president of En Pointe LLC, an investing firm, since April 2016. From 2011 through 2016, he was Lamond Capital Partners LLC’s President, Chief Executive Officer, and Chief Investment Officer. Mr. Lamond formerly served on the boards of Arrinex. Stryker Corporation acquired this medical device firm in February 2019, as well as Lucira Health Inc. and Applied Molecular Transport. Mr. Lamond also serves on the boards of directors of two non-profit organizations, Tipping Point Community and Ubuntu Pathways. Mr. Lamond has a B.A. in History from Duke University and a J.D. from Duke Law School.
Dr. Dirk Thye has been the Chief Executive Officer of Quince Therapeutics since May 2022. He brings over 20 years of experience in biotechnology firm creation, medication discovery, research and development, and executive leadership. Dr. Thye previously served as Chief Executive Officer of Novosteo, which Quince Therapeutics acquired in May 2022. Dr. Thye has also held various top leadership positions, including Chief Executive Officer, Chief Medical Officer, and Head of Clinical Development, and is the founder of seven companies, five of which were sold with outstanding returns for investors. Dr. Thye graduated from the University of California, Los Angeles, with an M.D. and from the University of California, Berkeley, with a B.A. in Molecular Biology. He also finished his Internal Medicine residency at Stanford University.
Opinion: Penny biotech stocks with insider buying can have big swings in price.
Name: Aron R. English
Position: 10% Owner
Transaction Date: 2023-08-18 Shares Bought: 1,853,056 Average Price Paid: $0.55 Cost: $1,023,072
Company: STRATA Skin Sciences Inc. (SSKN)
STRATA Skin Sciences is a dermatology-focused medical technology business dedicated to creating, commercializing, and distributing novel technologies for treating dermatologic disorders. The products include the XTRAC® and now Pharos® excimer lasers and the VTRAC® lamp systems, which treat psoriasis, vitiligo, and other skin disorders. In 1989, they incorporated in New York as Electro-Optical Sciences, Inc., and in 1997. They changed their name to MELA Sciences, Inc. in April 2010. The company changed its name to STRATA Skin Sciences, Inc. on January 5, 2016. They finalized the acquisition of PhotoMedex, Inc.’s XTRAC® Excimer Laser and VTRAC® excimer lamp operations in June 2015. The company bought the Pharos U.S. dermatology and TheraClear acne treatment businesses in August 2021 and January 2022, respectively.
Aron R. English, the founder of 22NW LP, is currently the Portfolio Manager at this firm. He is also a DIRTT Environmental Solutions Ltd. director and Anebulo Pharmaceuticals, Inc. He formerly worked as the Director-Research at RBF Capital LLC, the Director-Research at Meson Capital Partners LLC, and the Research Assistant at McAdams Wright Ragen, Inc. Mr. English holds an undergraduate degree from the University of Washington.
Opinion: A crowded aesthetics playground going into a potential recession doesn’t excite me.
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You can be an insider, too– by clicking here
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 with any stock market experience 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 of 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, we analyze unusual patterns with selling, 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 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.
This blog is solely for educational purposes and the author’s own amusement. Think of the blog as part of my personal investment journal that I am willing to share with the DIY investor. There are also many parts that I am not willing to share if I think it could influence trading action or be detrimental to the Fund’s partners. We could be long, short, or have no position at all in any of the stocks mentioned and express no written or implied obligation to disclose any of that.
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,
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