Barron’s magazine cover read, “Clean Energy Stocks have collapsed,” but it’s not just clean energy. It’s all energy. The fossil fuel kind, traditional energy, continued its dismal fall performance as demand concerns and the fear of recession crushed the good and “bad” kinds of energy. It seems impossible to have it both ways: green energy investments collapsing, and oil and gas stocks faltering, but that’s our world.
Powell hints at interest rates stabilizing or even coming down, and the market takes off. It didn’t take long for the drop in interest rate rates to collide with reality, the never-ending U.S. government debt issuance. The week ended with a warning from Moody’s that the U.S. sovereign credit rating risked being downgraded because of near-institutionalized dysfunction in Washington that avoids addressing structural deficits.
Then again, it seems impossible to have it both ways when the American public has spoken so loudly that they don’t want the likely nominees for President from either political party in 2024. It seems impossible to have a rising stock market with a money market yield of 5% and a dividend yield of just ~1.4%. Perhaps insiders have clues to the world of impossible possibilities.
Name: Seifi Ghasemi
Position: Chairman, Pres. and CEO
Transaction Date: 2023-11-08 Shares Bought: 10,000 Average Price Paid: $252.34 Cost: $2,523,400
Company: Air Products & Chemicals Inc. (APD)
Air Products and Chemicals, Inc., a Delaware firm founded in 1940, supplies key industrial gases, related equipment, and application expertise to customers worldwide. The company has a two-pillar growth plan based on sustainability that includes expanding and efficiently managing the core industrial gases business and implementing projects that offer world-scale clean hydrogen. Customers come to them from various industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food. They also design, engineer, construct, own, and operate some of the world’s largest industrial gas and carbon capture projects. The company produces clean hydrogen to serve global transportation, industrial markets, and the broader energy transition from fossil fuels. They have established leadership positions in various emerging areas, including hydrogen, helium, and liquefied natural gas process technology and equipment, and provide turbomachinery, membrane systems, and cryogenic containers worldwide.
Seifi Ghasemi was appointed chairman, president, and CEO of Air Products in July 2014. In this capacity, he is responsible for establishing the company’s strategy and policies, creating leadership, and meeting shareholder commitments. Mr. Ghasemi is a member of The Business Council, an organization of the world’s most powerful business leaders. Before joining Air Products, Mr Ghasemi was the chairman and CEO of Rockwood Holdings, a global leader in lithium and innovative materials, from 2001 until 2014.He was director of the Main Board of GKN, plc, and chairman and CEO of GKN Sinter Metals, Inc. and Hoeganes Corporation from 1997 to 2001. Mr. Ghasemi received his undergraduate degree from Abadan Institute of Technology and his M.S. in mechanical engineering from Stanford University.
Opinion: Much talk of clean hydrogen and carbon capture but little in the way of big profits. Perhaps more patience is needed for this dividend aristocrat to fully develop their blue hydrogen strategy, but APD has been basing a long time. Throw this one in your IRA and collect the gradually increasing dividend 2.8%. You could do a lot worse.
Name: Joseph M Hogan
Position: President and CEO
Transaction Date: 2023-11-09 Shares Bought: 5,194 Average Price Paid: $192.50 Cost: $999,845
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.
Joseph M. Hogan joined Align as President, Chief Executive Officer (CEO), and Director of Align Technology in June 2015. Mr. Hogan is a successful CEO with vast experience in various areas, including healthcare, technology, and industrial automation. Before joining ABB, Mr. Hogan worked for General Electric for 25 years in executive and management capacities, including eight years as CEO of GE Healthcare, overseeing considerable global and market portfolio development. Mr. Hogan graduated from Robert Morris University with an M.B.A. and from Geneva College with a B.S. in Business and Economics.
Opinion: Invisalign clear aligners business accounts for the overwhelming majority of the company’s revenue. In fiscal year 2022, Invisalign revenue was $4.5 billion, representing 97% of Aligns total revenue. It’s questionable how well clear aligners really work in my opinion.
Name: Michael Marberry
Position: Director
Transaction Date: 2023-11-06 Shares Bought: 3,786 Average Price Paid: $130.20 Cost: $492,937
Company: American Water Works Company Inc. (AWK)
American Water, founded in 1886, is the largest and most geographically diverse publicly traded water and wastewater utility company in the United States, measured by operating revenues and population served. The Company, which was founded in Delaware in 1936, employs around 6,500 workers who supply drinking water, wastewater, and other associated services to over 14 million people across 24 states. The majority of the Company’s activity is conducted through regulated utilities that offer water and wastewater services, referred to collectively as “Regulated Businesses.” In addition, the Company conducts other market-based businesses that offer water and wastewater services to the United States government in military facilities and towns. The major business of the Company is the ownership of utilities that supply water and wastewater services to residential, commercial, industrial, public authority, fire service, and sale for resale clients.
Michael L. Marberry is a businessman who has been the CEO of six separate firms. He serves on the board of American Water Works Co., Inc. Mr. Marberry previously served as Chairman of Advansix, Inc., as well as President, Chief Executive Officer, and Director of J. M. Huber Corp. Chairman of CP Kelco US, Inc., Chairman of Huber Energy LLC, Chairman of Huber Engineered Woods LLC, and President of Huber Engineered Materials, Inc., Principal at Procter & Gamble Co., Principal at McKinsey & Co., Inc., and Director-Corporate Strategy & Development at M.A. Hanna Co. He holds undergraduate and graduate degrees from the University of Kentucky, as well as an MBA from Dartmouth’s Tuck School of Business.
Opinion: Hey Marberry, have you heard some utilities are paying over 5% Double AWK’s dividend or when the price drops by half, call me. I’m in
Name: Jeffrey W Ubben
Position: Director
Transaction Date: 2023-11-06 Shares Bought: 250,000 Average Price Paid: $105.97 Cost: $26,491,420
Company: Exxon Mobil Corp (XOM)
Exxon Mobil Corporation was established in the state of New Jersey in 1882. ExxonMobil divisions and affiliated companies operate or market products in the United States and the majority of other countries across the world. The Company’s primary business is crude oil and natural gas exploration and production; the manufacturing, trade, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and a wide range of specialty products; and the pursuit of lower-emission business opportunities such as carbon capture and storage, hydrogen, and lower-emission fuels. Exxon Mobil Corporation is divided into several departments and has hundreds of affiliates, many of which have names such as ExxonMobil, Exxon, Esso, Mobil, or XTO. ExxonMobil has a lengthy history of developing proprietary technology. They provide a wide range of research programs specifically suited to the demands identified in each business sector.
Mr. Ubben co-founded Inclusive Capital Partners and has been Portfolio Manager and Managing Partner since 2020. Mr. Ubben also co-founded and served as Chief Executive Officer of ValueAct Capital Partners, L.P., from 2000 to 2020 and Chief Investment Officer from 2000 to 2017. From 1987 to 1995, he was a Managing Partner of Blum Capital Partners, L.P. Mr. Ubben has served on over 20 public company boards and has a long history of successfully challenging and working alongside boards and management teams to maximize shareholder value. His expertise in return-driven, environmental, and socially active investing, as well as his unique knowledge and experience investing in the energy transition, assists the Board in making better strategic and investing decisions around low-carbon solutions such as carbon capture and hydrogen technologies.
Opinion. C02 emissions are making the atmosphere warmer. There is no denying that. Let’s do something about it other than flying around on our fancy jets and boats lecturing the 99.9% of the world that is worrying how they’re going to get through hotter and hotter summers, colder winters, and monstrous storms. The world is no closer to giving up carbon-based fuels than the human species oxygen. Exxon looks like an incredible buy to me, assuring that the world has adequate energy while investing enormous resources in carbon capture, lithium brine technology, and other renewable sources. They claim that the Denbury acquisition will contribute to more CO2 reduction this coming year than all the EV vehicles on the road. How anyone will substantiate this or any of the ESG is another one of the impossible possibilities.
Name: Douglas S Ingram
Position: President & CEO
Transaction Date: 2023-11-03 Shares Bought: 25,225 Average Price Paid: $79.36 Cost: $2,001,800
Company: Sarepta Therapeutics Inc. (SRPT)
Name: Richard Barry
Position: Director
Transaction Date: 2023-11-03 Shares Bought: 50,000 Average Price Paid: $78.81 Cost: $3,940,500
Company: Sarepta Therapeutics Inc. (SRPT)
Sarepta is a multinational biotechnology company on a quest to create a precise genetic cure for rare diseases that take lives and shorten people’s lives. They are a commercial-stage biopharmaceutical company that helps patients by researching and developing new RNA-targeted medications, gene therapy, and other genetic therapeutic modalities to treat uncommon diseases. Using proprietary, highly differentiated, and novel technology, as well as cooperation with strategic partners, the business has created many authorized medications for treating Duchenne muscular dystrophy. The company is also working on AMONDYS 45, a product candidate that uses phosphorodiamidate morpholino oligomer chemistry and exon-skipping technology to skip exon 45 of the dystrophin gene.
Doug Ingram has been President, CEO, and board member since 2017. Doug is determined to make Sarepta the leader in precision genetic medicine and to save the lives of those affected by rare genetic diseases. Doug is quick to point out that Sarepta is different from most of the biotechs concentrated around Kendall Square in Cambridge. Doug’s two-decade career in pharma-biotech began in 2001 as General Counsel at Allergan, where he rose through the ranks to become President in 2013. When Allergan was acquired by Actavis in 2015, he went on to Chase Pharmaceuticals, where he served as President and CEO before joining Sarepta. Doug earned his JD from the University of Arizona and his BS from Arizona State University. He is a member of the Relay Therapeutics Board of Directors.
Richard J. Barry, a long-time shareholder of the Company, has been a member of our Board of Directors since June 2015. He is a member and the Chair of the Nominating and Corporate Governance Committee, as well as a member of the Audit and Compensation Committees. Mr. Barry has been a director of Elcelyx Therapeutics, a pharmaceutical firm, since February 2013. He is also a managing member of GSM Fund, LLC, a fund created specifically to invest in Elcelyx. From 1999 until its closure in 2010, he was a founding member of Eastbourne Capital Management LLC, a significant equity hedge fund investing in various industries, including healthcare. He served as Managing General Partner and Portfolio Manager. Mr. Barry was named to the Board of Directors of MiMedx Group Inc. in May 2019, a biopharmaceutical business that develops, manufactures, and markets regenerative biologics based on human placental allografts. Mr. Barry graduated from Pennsylvania State University with a BA.
Opinion: Controversial Duchenne drug already approved by the FDA continues to haunt investors. EMBARK trial miss is likely to make optimal Elevidys label expansion more challenging, but the totality of the data coupled with favorable FDA feedback should maintain the likelihood that Elevidys is able to remain on the market, at least with its existing label. Wild ride -too wild for me.
Name: Jason P. Wells
Position: President & COO
Transaction Date: 2023-11-09 Shares Bought: 10,000 Average Price Paid: $26.91 Cost: $269,050
Company: Centerpoint Energy Inc (CNP)
CenterPoint Energy is a holding company for public utilities based in Houston, Texas. The operating subsidiaries of CenterPoint Energy own and operate electric transmission, distribution, and generation facilities, as well as natural gas distribution facilities, and provide energy services and other related activities. CenterPoint Energy and its predecessor firms have been in business for over 140 years, employing over 8,900 people. Through charitable donations and staff volunteerism, we positively influence the communities. CenterPoint Energy is an Equal Opportunity Employer that seeks to hire and advance qualified minorities, women, individuals with disabilities, and veterans.
Jason is the President and Chief Operating Officer of CenterPoint Energy. In this capacity, he is in charge of the company’s utility activities, which include electric, natural gas, and power generating. Jason is concerned with safety, fostering excellence throughout the organization, and carrying out the company’s industry-leading growth strategy. Jason worked for PG&E Corporation for 13 years until joining CenterPoint Energy in 2020. Jason sits on the Greater Houston Partnership, Central Houston, Inc., and M.D. boards. Anderson Cancer Centre, and the University of Houston’s Bauer College of Business. He also serves on the Kinder Institute for Urban Research’s advisory board at Rice University. He received his bachelor’s and master’s degrees in accounting from the University of Florida. He is a Certified Public Accountant (CPA).
Opinion: I like regulated electric utilities until the ratepayers decide to sue them into oblivion for failure to prevent sparking lines that cause apocalyptic fires. Besides this utility pays half of what I need in a world where the Fed has a deaf ear and keeps interest rates high.
Name: John R Rutherford
Position: Director
Transaction Date: 2023-11-09 Shares Bought: 10,000 Average Price Paid: $25.96 Cost: $259,639
Company: Enterprise Products Partners L.P. (EPD)
Enterprise Products Partners L.P. is a Delaware limited partnership that is publicly traded. Its common units are traded on the New York Stock Exchange under the “EPD.” The corporation’s preferred units are not traded on the stock exchange. The firm was formed in April 1998 to own and manage several EPCO natural gas liquids facilities. It is a major North American supplier of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals, and refined goods. From an economic aspect, the corporation is owned by limited partners. Enterprise GP manages the partnership, which has a non-economic general partner share in the enterprise. EPO and its consolidated subsidiaries handle most of the company’s business activities.
Mr. Rutherford was elected as a director of Enterprise GP in January 2019 and is currently a member of its Governance Committee. Mr. Rutherford served on Enterprise GP’s Audit and Conflicts Committee from January 2019 to December 2022. He is a private investor and a part-time Senior Advisor to ECP GP, an energy investment firm concentrating on the power, clean energy, and midstream sectors. Mr. Rutherford also serves on the board of directors of T.D. Williamson Holdings, LLC, a privately held pipeline field services company, and on the Employees Retirement System of Texas Board of Trustees, which oversees a public pension system and healthcare benefits for employees and retirees of Texas state agencies. He has over 20 years of investment banking expertise as a mergers and acquisitions and strategic advisor to public and private energy businesses, investment firms, management teams, and boards of directors.
Opinion: It’s obvious to the people who have the gas and oil flowing in the pipes that we are not replacing them with alternative energy. Even if we did, we’d still likely use great parts of their transportation system for the foreseeable future, i.e.. natural gas pipelines flow blue hydrogen?
Name: Thomas L Carter Jr
Position: CEO and Chairman
Transaction Date: 2023-11-02 Shares Bought: 50,000 Average Price Paid: $18.31 Cost: $915,432
Company: Black Stone Minerals L.P. (BSM)
Black Stone Minerals, L.P. is one of the leading owners and managers of oil and natural gas mineral holdings in the United States. The company’s primary business is maximizing the value of our current mineral and royalty assets through active management and extending our asset base through acquisitions of additional mineral and royalty holdings. They maximize value by selling our mineral assets for lease, creatively arranging lease conditions to promote and accelerate drilling activity, and strategically participating alongside the lessees on a working interest basis. They anticipate that their broad, diverse asset base and long-lived, non-cost-bearing mineral and royalty interests will produce consistent production and reserves over time, allowing the bulk of generated cash flow to be transferred to unitholders.
Mr. Carter has been the General Partner’s Chairman and Chief Executive Officer since November 2014. Mr. Carter was President of the General Partner from November 2014 to June 2018 and will return in February 2023. From 1998 to 2015, Mr. Carter formed BSMC and served as President, Chief Executive Officer, and Chairman of Black Stone Natural Resources, L.L.C., the former general partner of BSMC. From 1987 to 1992, Mr. Carter was the Managing General Partner of W.T. Carter & Bro., and from 1980 until the present, he was the Managing General Partner of Black Stone Energy Company. In 1980, Mr. Carter established Black Stone Energy Company, BSMC’s operating and exploratory subsidiary. Mr. Carter worked as a lending officer in the Energy Department of Texas Commerce Bank in Houston, Texas, from 1978 to 1980, after serving in various previous capacities since 1975. Mr. Carter earned an M.B.A. and a B.B.A. from the University of Texas at Austin. From 2005 to 2019, Mr. Carter was a director of Carrizo Oil & Gas Inc. Mr. Carter is a Trustee Emeritus of The Lawrenceville School and a member of the University Lands Advisory Board.
Opinion: 11.2% dividend payout on this passive royalty stream income of oil and gas well and land rights. I don’t know too much about the individual leases within BSM, but the main thing you need to know is that an 11.2% dividend looks good for now; the CEO is buying a million dollars worth of the company’s stock, and green energy, although taking the place of the tooth fairy in children’s book is not going to be an existentialist threat.
Name: Alexander M Davern
Position: Director
Transaction Date: 2023-11-07 Shares Bought: 30,000 Average Price Paid: $17.16 Cost: $514,826
Company: Faro Technologies Inc (FARO)
FARO was created in 1982 and reincorporated in 1992 in Florida. Our global headquarters are in 250 Technology Park in Lake Mary, Florida. The global technology company designs, develops, manufactures, markets, and supports software-driven three-dimensional measurement, imaging, and realization solutions for 3D metrology, architecture, engineering, construction, operations and maintenance, and public safety analytics. They enable their customers to record, measure, manipulate, interact with, and exchange 3D and 2D data from the physical world in a virtual environment, subsequently translated back into the physical domain. The extensive technological portfolio provides customers various 3D capture solutions, ranging from ultra-high precision laser-scanner-based technology to lower-accuracy photogrammetry-based technology.
Davern was appointed chief executive officer in January 2017. He reconciles the company’s long-term goal with short-term business requirements to produce value for its consumers, employees, partners, and shareholders. Davern is the company’s second CEO since its inception in 1976. He joined NI in 1994 and has been an Executive Management team member since 1997 when he was named chief financial officer. He supervised a more than 12X increase in the company’s market value during his term as CFO. For the past 15 years, Davern has been heavily involved in business and platform strategy. He was also the executive sponsor in charge of guaranteeing the effective expansion and long-term success of some of NI’s largest customers. Davern graduated from University College Dublin with a bachelor’s degree in commerce and a postgraduate diploma in professional accounting.
Opinion: This might be an interesting robotic drone play. Faro might be extraordinarily well positioned to capture the
Name: Andres Gluski
Position: President and CEO
Transaction Date: 2023-11-07 Shares Bought: 50,000 Average Price Paid: $16.38 Cost: $819,000
Company: Aes CORP (AES)
AES, founded in 1981, is a global energy corporation dedicated to advancing the future of energy. The company improves people’s lives by offering greener, smarter energy solutions to the world with their stakeholders. Their diversified workforce is dedicated to continual innovation and operational excellence while working with clients on strategic energy transitions and managing 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 accomplish the Paris Agreement’s target of net-zero emissions by 2050. They now see a massive economic opportunity in the once-in-a-lifetime revolution in the electrical industry, driven by decarbonization, electrification, and digitization.
Andrés Gluski was appointed President and CEO of The AES Corporation in 2011. AES became one of the world’s leading renewables and clean technology firms under his leadership. According to Bloomberg New Energy Finance, AES signed more contracts with firms for renewable energy than anybody else in the world in 2021 and 2022. Andrés is the Chairman of the Council of the Americas/Americas Society and a member of the Executive Committee of the Board of Directors of EEI. He also serves on the boards of Waste Management and the US-India and US-Brazil CEO Forums. He received his master’s degree and Ph.D. in Economics from the University of Virginia.
Opinion: Blanket marketing statements like “AES signed more contracts with firms for renewal energy than anybody else in the world in 2022, and 2022 are not inspiring confidence. We have only now found that wind energy is often fraught with mechanical difficulties and fragile blades that make their lifespan and and therefore, the climate calculations useless. There must be far more scientific rigor applied than slogans and meaningless ESG Ratings.
Name: Kelcy L Warren
Position: Executive Chairman
Transaction Date: 2023-11-06 Shares Bought: 1,000,000 Average Price Paid: $13.53 Cost: $13,530,000
Company: Energy Transfer LP (ET)
Energy Transfer LP is a Delaware limited partnership whose common units are traded on the New York Stock Exchange under the “ET.” Energy Transfer generates financial flows from distributions from its companies, including Sunoco LP and USAC. The quantity of cash distributed to them by their subsidiaries is determined by the earnings from their particular business activities and the amount of accessible cash. Energy Transfer’s principal financial requirements are partner payouts, general and administrative expenses, and debt service. They anticipate that the subsidiaries will use their resources and cash from operations to fund their announced growth capital expenditures and working capital needs; however, Energy Transfer may issue debt or equity securities as needed to provide liquidity for new capital projects of their subsidiaries or other partnership purposes.
Kelcy Warren is the Executive Chairman and Chairman of the Board of Directors of Energy Transfer LP. Mr. Warren has been a recognized leader in the energy industry for nearly 40 years. He co-founded Energy Transfer 1996 as a modest intrastate natural gas pipeline operator. Under his leadership, Energy Transfer has developed into one of the industry’s largest and most diverse publicly traded energy firms, providing transportation and midstream services for natural gas, natural gas liquids, crude oil, and refined products. Several energy and business organizations have recognized Mr. Warren’s services to the sector. He is a member of the Horatio Alger Association of Distinguished Americans, the Texas Business Hall of Fame, and the Ammys Hall of Fame. He was also a 2020 Laureate in the Dallas Business Hall of Fame presented by Junior Achievement of Dallas and a recipient of the Hanlon Award presented by the Gas Processors Association. Mr. Warren earned his bachelor’s degree in civil engineering from the University of Texas in Arlington.
Opinion: We own this and it seems like a no brainer with near 10% dividend yield and no end to the hydro carbon economy. Kelcy continues to buy $millions and $millions of his company stock.
Name: William J Mcmorrow
Position: Chairman And CEO
Transaction Date: 2023-11-06 Shares Bought: 100,000 Average Price Paid: $12.32 Cost: $1,232,000
Company: Kennedy-Wilson Holdings Inc. (KW)
Kennedy Wilson is a global real estate investing firm. The company owns, operates, and develops high-quality real estate in growing regions in the Western United States, the United Kingdom, and Ireland to deliver long-term risk-adjusted returns for its shareholders and partners. Based on the share of net operating income, their global real estate portfolio is predominantly made up of multifamily communities (57%), commercial buildings (39%), and hotel and other properties (4%). The Western United States accounts for 61% of its portfolio, emphasizing the Mountain West region, the largest worldwide region, which includes investments in Idaho, Utah, Nevada, Arizona, and New Mexico. The company also invests in the Pacific Northwest, including the state of Washington, as well as Northern and Southern California. In Europe, the portfolio is concentrated in the United Kingdom (16%) and Ireland (21%). In their Consolidated Portfolio, they own multifamily units, office, retail, and industrial space, as well as one hotel.
William McMorrow is the chairman and CEO of Kennedy Wilson, a company he founded in 1988 and has evolved into a prominent global real estate investment platform. Kennedy Wilson began with one office and 11 people and has since expanded to 15 offices across the United States, United Kingdom, Ireland, Spain, Jersey, and Japan. Mr. McMorrow worked in the financial industry for 17 years before joining Kennedy Wilson in 1988. He was Executive Vice President and Chairman of the Credit Policy Committee at Imperial Bank in Los Angeles, and he previously worked as a Senior Vice President at Fidelity Bank in Pennsylvania for eight years. Many publications have featured Mr. McMorrow and Kennedy Wilson, including the New York Times, Barron’s, Irish Times, Los Angeles Business Journal, and PERE. Mr. McMorrow was named one of Southern California’s Real Estate Icons by Real Estate Forum magazine 2012. Mr. McMorrow graduated from Loyola High School and earned his Bachelor of Science in Business and MBA from the University of Southern California, where he is a Trustee.
Opinion: The definition of catching a falling knife. I like simple REITs where the cash flow looks secure. When interest rates turn lower, utilities and reliable REITs could catch on fire.
Name: Michael J Christenson
Position: Chief Executive Officer
Transaction Date: 2023-11-08 Shares Bought: 100,000 Average Price Paid: $3.85 Cost: $385,000
Company: Entravision Communications Corp (EVC)
Entravision Communications Corp is a global leader in advertising solutions, media, and technology. The company provides comprehensive, end-to-end advertising solutions across many media platforms, including digital, television, and audio properties. They report in three groups for financial reporting reasons, based on the type of advertising medium: digital, television, and audio. Their digital division, predominantly based in Latin America, Europe, the United States, Asia, and Africa, serves a global market, emphasizing advertisers in emerging nations that want to advertise on digital platforms primarily owned and controlled by global media firms. The audio and television efforts reach and engage Hispanics in the United States. The company offers digital end-to-end advertising solutions enabling advertisers to access worldwide online users.
Mike Christenson has been the CEO of Entravision since July 2023. Previously, he was a Managing Partner at Mayten Research, a private investment and advisory firm, from 2022 to 2023, the President and Chief Operating Officer of New Relic, Inc., a cloud-based observability platform that engineers use to build and manage enterprise systems, from 2019 to 2021, and a member of New Relic, Inc.’s Board of Directors from 2018 to 2021. Mr. Christenson formerly worked as a Managing Director at Allen & Company, a private investment banking business, from 2010 until 2019, where he offered advice and investment banking services to software startups. Mr. Christenson was President and Chief Operating Officer of CA, Inc., an enterprise systems management and security software firm, from 2005 to 2010. Mr. Christenson worked as an investment banker at Salomon Brothers, Inc. and its successor business, Citigroup Global Markets, Inc., from 1987 to 2004.
Opinion: Have never understood the business model.
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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,
