The market reached deeply technically oversold conditions. Bullish divergence RSI was signaling a reversal. I would have said this reversal has room to run, but the war in Israel may reverse whatever animal spirits are forming. Give Peace a Chance looks like a nostalgic idea, with the axis of evil combined with Iran, Russia, and China financing it through the purchase of oil. Why the U.S. doesn’t stop the transit of Iranian oil through the Hormuz straits is a mystery considering there have been dozens of provocative actions by Iran that have been stymied only by the U.S Navy coming to the rescue. It is time for the Biden administration to show some teeth and quit slow-walking lethal aid to Ukraine. It’s all connected, and the evil will return home sooner or later.
War or no war abroad, the Federal Reserve is waging war against the American consumer and the stock market. Big tech can carry water so far with the hype of AI. There will not likely be any relief until the Fed causes an accident, and they surely will. For the time being, I, like most everyone else, am hiding out with 5% risk-free Treasuries, not complaining too loudly.
Name: Joey Agree
Position: President & Ceo
Transaction Date: 2023-10-02 Shares Bought: 4,000 Average Price Paid: $53.84 Cost: $215,360
Company: Agree Realty Corp (ADC)
Agree Realty Corp is a fully integrated real estate investment trust specializing in owning, acquiring, developing, and managing retail buildings net leased to industry leaders. The company was created in 1971 by Richard Agree, the current executive chairman, and its common stock debuted on the New York Stock Exchange in 1994. The Operating Partnership, in which the Company is the sole general partner and possesses a 99.5% common interest as of December 31, 2021, is the location of all of the Company’s assets and where its activities are carried out directly or indirectly. According to the partnership agreement, the Company is in charge of and entirely controls how the Operating Partnership runs.
Joey Agree was named President and Chief Operating Officer in 2009 then Chief Executive Officer in 2013. Mr. Agree was named EY’s 2018 Entrepreneur of the Year for the Michigan and Northwest Ohio Region. Joey Agree holds a BA in Political Science from the University of Michigan and a Juris Doctorate from Wayne State University Law School, where he was awarded a Dean’s Scholar. He is a member of the State Bar of Michigan, the Young Presidents’ Organization (YPO), the Urban Land Institute (ULI), the International Council of Shopping Centres (ICSC), and the National Association of Real Estate Investment Trusts (NAREIT). He has appeared on many commercial real estate forums and in interviews nationwide.
Opinion: Triple Net leases with prime credits yielding over 5% will be very attractive when rates collapse, which they certainly will. I don’t know when but I’d say that consumer spending will fall off a cliff.
Name: Gregory Bailey
Position: Director
Transaction Date: 2023-10-04 Shares Bought: 17,817 Average Price Paid: $22.57 Cost: $402,094
Company: Biohaven Ltd. (BHVN)
Name: Matthew Buten
Position: Chief Financial Officer
Transaction Date: 2023-10-05 Shares Bought: 22,727 Average Price Paid: $22.00 Cost: $499,994
Company: Biohaven Ltd. (BHVN)
Biohaven Ltd. is a global clinical-stage biopharmaceutical business dedicated to researching, developing, and commercializing life-changing treatments for patients suffering from devastating neurological and neuropsychiatric diseases, particularly uncommon disorders. The company’s professional management team has a track record of achieving innovative medicine approvals for disorders such as migraine, depression, bipolar disorder, and schizophrenia. They are developing therapies for diseases with few or no treatment options, leveraging their proven drug development capabilities and proprietary platforms, such as Kv7 ion channel modulation for epilepsy and neuronal hyperexcitability, glutamate modulation for OCD and Spinocerebellar Ataxia, myostatin inhibition for neuromuscular diseases, and brain-penetrant Tyrosine Kinase 2/Janus Kinase 1 inhibition for immune. The company assembled a highly skilled team of senior leaders and neuroscience drug developers who mix a nimble, results-driven biotech approach with drug research and development capabilities.
Dr. Bailey has spent the last 15 years as an entrepreneur, leader, and financier in the healthcare business. He is currently the Chairman of the Board of Portage Biotech Inc. and has served on the Boards of Directors of 16 public businesses. He is a former Medivation Inc. director and founder and a co-founder of Ascent Healthcare Solutions, VirnetX Inc. internet security, and Duramedic Inc., a medical goods company. Prior positions in the investment and financial services sector included Managing Director of Gilford Securities Inc., Managing Director of Knightsford Bank Corp, Senior Managing Director positions at Viscogliosi Brothers and the LXV Prosperity Fund, founder and General Manager of the ABN Private Equity Fund, co-founder of Euro-American Mercantile Bancorp, and co-founder and CEO of V-Fund Investments, Ltd. Dr. Bailey obtained his medical degree from the University of Western Ontario before working as an emergency department physician for ten years.
Matt has over 20 years of expertise in healthcare investments and over 15 years as an investment banking advisor, structuring transactions for small and large capitalization companies. He was a Managing Director of Foresite Capital, a specialist healthcare venture and growth equity fund, from 2012 until 2021. During his nine years at Foresite, he held various positions, including launching their New York office, sourcing and managing public and private assets, developing and maintaining ties with Wall Street banking, research and sales, and serving on the Investment Committee. Matt began his career in investment banking as an associate specializing in mergers and acquisitions, equity and debt financings, and spin-offs. He worked as a Director in Investment Banking for Smith Barney for ten years before becoming Managing Director and Head of Healthcare Investment Banking for Needham and Company. Matt earned a bachelor’s degree in economics from the University of Pennsylvania’s Wharton School.
Opinion: Biohaven spiked 26% on September 27th as Biohaven issued a positive take on its pipeline to the analysts’ community. We sold into this rally as this was a huge move. Biohaven opportunistically did a $200 million secondary. Two insiders stepped up and bought $400k and $500k in the secondary. You have to believe they believe as well.
Name: Marcus Lemonis
Position: Director
Transaction Date: 2023-10-05 Shares Bought: 31,800 Average Price Paid: $15.67 Cost: $498,306
Company: Overstock.Com Inc (OSTK)
Transaction Date: 2023-10-04 Shares Bought: 33,000 Average Price Paid: $14.94 Cost: $493,020
Company: Overstock.Com Inc (OSTK)
Overstock.com offers various low-cost products, including furniture, décor, area rugs, bedding and bath, home renovation, outdoor, and kitchen and dining items. The company sells products and services on the Internet at www.overstock.com, www.o.co, www.overstock.ca, and www.overstockgovernment.com, as well as through its mobile app. The company, situated near Salt Lake City, Utah, was created in 1997 as a Utah limited liability company, reorganized as a C corporation in Utah in 1998, and reincorporated in Delaware in 2002. They launched their first Website in March 1999. Their mission is to supply furniture and home furnishings to assist consumers in “Making Dream Homes Come True,” particularly for their target customers—consumers who want smart value on quality, trendy furniture and home furnishings at competitive rates and a simple shopping experience.
Lemonis is the current Chairman and CEO of Camping World. He offers a wealth of experience establishing and scaling businesses from the ground up. He’s well-known for helping small firms on CNBC’s The Profit improve their people, processes, and products for stability and profitability. Lemonis also helps clients improve the value and functionality of their houses on his successful TV show, The Renovator. He has over 25 years of experience in business development, corporate retail, and entrepreneurship. Lemonis has grown Camping World and Good Sam from the ground up to become the world’s largest RV and outdoor shop and affinity organization. Many people know him as the “business turnaround king” and the star of CNBC’s prime-time reality show The Profit. Lemonis’ fame stems from his persistence, shrewdness, and determination.
Opinion: Marcus Lemonis was just appointed to the Board at Overstock. Overstock stock price collapsed in August after a stunning run higher that started in June. The acquisition of the Bed Bath Beyond brand out of bankruptcy is not likely to deter the same or next-day massive black hole that Amazon has created, sucking in and destroying everything in its orbit.
Name: Clay B Siegall
Position: President and CEO
Transaction Date: 2023-10-02 Shares Bought: 169,204 Average Price Paid: $5.91 Cost: $999,996
Company: Immunome Inc. (IMNM)
Name: Bruce Turner
Position: Chief Strategy Officer
Transaction Date: 2023-10-02 Shares Bought: 42,300 Average Price Paid: $5.91 Cost: $249,993
Company: Immunome Inc. (IMNM)
Immunome Inc. is a biopharmaceutical firm that uses a proprietary human memory B cell platform to find and develop antibody therapies to improve patient care. The discovery engine finds novel therapeutic antibodies and their targets by harnessing memory B cells, a highly educated immune system component. Memory B cells are essential to a long-lasting human immune response because they create particular, high-affinity antibodies that bind to antigens produced in sick cells and target them for destruction by other immune effector cells. The company platform is distinct from other biotechnology businesses due to its impartial, broad, deep, and efficient approach to identifying novel antibody-target pairings that may be useful in developing medicines for cancer and other disorders.
Dr. Siegall formerly served as the CEO and President of Seagen, Inc., which he co-founded in July 1997. Seagen became the world leader in ADC treatments throughout his 25-year tenure, earning FDA approval for four cancer medications. Before joining Seagen, Dr. Siegall held roles of increasing responsibility at Bristol Myers Squibb and the National Cancer Institute. He received his Ph.D. in Genetics from George Washington University and his B.S. in Zoology from the University of Maryland.
Dr. Turner previously developed many biotechnology firms, including Xanadu Bio and Gennao Bio, where he held leadership positions such as Chief leadership Officer and President. Dr. Turner formerly worked at Hoffmann La-Roche for five years, gaining increasing responsibility for drug development in metabolic disorders and oncology. Dr. Turner was most recently a managing director at Boxer Capital of the Tavistock Group and Bank of American Merrill Lynch. Dr. Turner is the author of over 40 papers, most focusing on breast cancer and signal transduction. He received his undergraduate education at the University of Chicago and his M.D. and Ph.D. degrees at the University of Pennsylvania School of Medicine. Dr. Turner did his training in Radiation Oncology at Yale University.
Opinion: Chardan analyst Matthew Barcus said the deal to bring together Immunome’s Discovery Engine with Morphimmune’s Targeted Effector platform and targeted oncology therapeutics can create a “biopharma powerhouse” with plans to submit three INDs within 18 months after the transaction closes. Apparently, insiders agree with that assessment.
Name: Alexander A Fitzpatrick
Position: Chief Legal Officer
Transaction Date: 2023-09-28 Shares Bought: 86,258 Average Price Paid: $3.71 Cost: $319,954
Company: ARS Pharmaceuticals Inc. (SPRY)
ARS Pharmaceuticals, Inc. is a biopharmaceutical firm focused on developing neffy®, a unique, possibly first-in-class therapeutic candidate for treating Type I allergic responses, including anaphylaxis. Neffy is a patented epinephrine formulation with an innovative absorption enhancer known as Intravail®, which enables neffy to give injection-like absorption of adrenaline at a low dose in a tiny, easy-to-carry, easy-to-use, promptly administered, and dependable nasal spray. Type I severe allergic reactions are significant and potentially fatal events that can develop within minutes of allergen exposure and necessitate rapid treatment with epinephrine injection, the only FDA-approved medicine for these reactions. While epinephrine injection devices have been proven to be highly successful, well-documented drawbacks cause many patients and carers to postpone or refuse treatment in an emergency.
Alexander A. Fitzpatrick, Esq. has been the Chief Legal Officer of ARS Pharma since December 2022. Mr. Fitzpatrick was general counsel to various public and private commercial-stage pharmaceutical, biotechnology, and other technology firms from 2004 to 2022. Before joining the company, Mr. Fitzpatrick worked in the business and corporate departments of the legal firms Cooley LLP and Latham & Watkins LLP in San Diego and Rogers & Wells LLP in London. Mr. Fitzpatrick has represented pharmaceutical, healthcare, and other technology companies, as well as investment banks and venture capitalists, in various transactions, including collaborations, mergers and acquisitions, intellectual property concerns, licensing, and financing activity. Mr. Fitzpatrick earned a B.S. in mathematics from Georgetown University and a J.D. from the University of California, Berkeley (Boalt Hall).
Opinion: ARS Pharmaceuticals announced that the FDA issued a Complete Response Letter, or CRL, regarding its New Drug Application, or NDA, for neffy in the treatment of Allergic Reactions, including anaphylaxis for adults and children of 30 kg. ARS Pharma plans to submit a Formal Dispute Resolution Request, or FDRR, to appeal the issuance of this CRL. Just a reminder on how binary the outcomes are for developmental biotechs
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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 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,
