Insider Buying 02-21-25 Welcome To Chaos 2.0

I refer to the first Trump administration as Chaos 1.0. Many good things can come from disruption but generally the markets like predictability and order. It was only a worldwide pandemic that upstaged the near constant firing and turnover in the Administration. It was the real-world political version of the popular reality TV show, The Apprentice. According to the Brookings Institute, Trump’s A team turnover from year to year was 92%, far higher than any of the last six Presidents. Now what will be next? Worldwide war and the collapse of the post-World War II order? Or as Donald Trump said you won’t need any more elections because he’s going to fix everything.

I never want to be political in these posts. There are plenty of people doing that. I try to deliver concise insider buying analysis, but investors can’t afford to be naive either. Just saying ‘you’ve fixed everything’ may con some Maga fans, but the market is going to vote on it even if the public can’t. Friday’s pin action was not promising. The end of the quarterly blackout is unlocking insider buying AND selling. Chaos 2.0 should bring out more buyers as investors dump stocks that could be vulnerable to Trump’s wrath and fury.

There are some high convictions trades this week, but I’ll let you sort that one out. This is the Insomniac Hedge Fund’s notebook, not a guidebook so investors beware. Insiders don’t always buy their stock because they think it’s going up. There are often other motives at play. Although we track insider buying assiduously, it’s only one tool in the toolbox.

Name: Alexander Wolf
Position: Director
Transaction Date: 02-13-2025 Shares Bought: 13,500 shares an Average Price Paid of $215.07 for Cost: $2,903,482

Company: Appfolio Inc (APPF):

AppFolio is a technology leader transforming the real estate industry, founded in 2006, The company provides a cloud-based platform that enables businesses to operate efficiently within an interconnected network of stakeholders, including property managers, investors, potential residents, current residents, and vendors. AppFolio offers essential features for critical real estate transactions, such as resident screening, payment processing, and insurance-related risk mitigation. Its solutions enhance community connectivity, optimize operations, improve customer experiences, and drive financial and operational performance. A strong customer-centric approach fosters long-term retention, contributing to sustained success.

Alex Wolf has been a member of the Board since January 2022. He is currently a partner at Partners Fund Capital, a position he has held since 2022, and serves on the Board of Directors for several privately held software companies. Before joining PFC, he spent eight years as a partner at Investment Group of Santa Barbara from 2015 to 2022. Earlier in his career, he held finance and investment roles at The Carlyle Group and Blackstone Inc. Wolf holds a B.A. from Yale University and an M.B.A. from the Stanford Graduate School of Business.

Opinion: Wolf has good bona fides but I daresay $2.9 million is not an enormous bet on his part but the filings show he owns over 200,000 shares so he certainly doesn’t need more AppFolio for his financial planning needs. I had just finished listening to one of my favorite podcasts, (which unfortunately I don’t remember) which had just done a deep dive on APPF and were great fans. $50 lower looked relatively cheap. I ran a bunch of DCF models and also asked ChatGPT and xAI what the intrinsic value was. It doesn’t come back especially as a bargain, but great software recurring revenue models rarely are. The two most important metrics, recurring revenue growth rate and net retention rate in the last quarter were.

According to xAI While exact figures aren’t broken out, industry norms and AppFolio’s business model suggest 85-90% of revenue is recurring, driven by subscriptions rather than one-time sales AppFolio doesn’t publicly disclose NRR, but it can be inferred from unit growth (+6% in 2024) and revenue per unit increases (due to upselling Plus/Max tiers). Analysts estimate NRR exceeds 110%, reflecting strong customer retention and expansion within existing accounts, though not as high as pure SaaS leaders like Salesforce (120%+).

Name: James C Foster
Position: Chairman, President and CEO
Transaction Date: 02-20-2025 Shares Bought: 6,075 shares an Average Price Paid of $165.01 for Cost: $1,002,436

Name: Birgit Girshick
Position: Corporate Executive VP & COO
Transaction Date: 02-20-2025 Shares Bought: 1,514 shares an Average Price Paid of $164.63 for Cost: $249,250

Company: Charles River Laboratories International Inc.(CRL):

Charles River Laboratories International, Inc., an American pharmaceutical company founded in 1947, provides preclinical and clinical laboratory services to the pharmaceutical, medical device, and biotechnology industries. Headquartered in Wilmington, Massachusetts, the company offers a range of services, including fundamental research, drug discovery, safety and efficacy testing, clinical support, and manufacturing. With approximately 150 facilities across 21 countries, its clients include pharmaceutical and biotechnology firms, government agencies, hospitals, and academic institutions worldwide.

James C. Foster has been with Charles River Laboratories since 1976, beginning his tenure as Vice President of Administration and General Counsel. He was appointed President in 1991, Chief Executive Officer in 1992, and Chairman in 2000. Under his leadership, the company evolved from a specialized research model and services provider into a comprehensive early-stage drug research partner. Foster holds a Bachelor of Arts degree from Lake Forest College, a Juris Doctor from Boston University School of Law, and a Master of Science from the MIT Sloan School of Management.

Birgit Girshick was appointed Chief Operating Officer of Charles River Laboratories International, Inc. in October 2021. Since joining the company in 1989, she has held progressively senior roles within the Research Models & Services and Avian Vaccine Services divisions. In 2004, she was promoted to General Manager of Avian Vaccine Services, followed by her appointment as Corporate Vice President of Global Biopharmaceutical Services in 2010. By 2013, she assumed the role of Corporate Senior Vice President, overseeing Research Models and Biologics Testing Solutions. Girshick holds a bachelor’s degree from Eastern Connecticut State University, an MBA from the University of Rhode Island, and a diploma from the Advanced Management Program at MIT’s Sloan School of Management.

Opinion: Another brand name company on sale. The end of the quarterly blackout is providing a big lift in insider buying AND selling. CRL showed real bottoming behavior as it was up 1.79% during Friday’s blood bath which rocked the S&P 1.71%.

Name: Gregg C Sengstack
Position: Director
Transaction Date: 02-19-2025 Shares Bought: 8,000 shares an Average Price Paid of $125.24 for Cost: $1,001,920

Company: Allegion plc (ALLE):

Allegion plc, established in 2013 as a spin-off from Ingersoll Rand, is a global leader in security products and solutions designed to protect people and assets across residential, educational, commercial, and public spaces. Committed to advancing safety and security, the company focuses on creating a more secure and accessible society. Emphasizing collaboration and ecosystem development, Allegion enables seamless access experiences and ensures the uninterrupted and secure movement of people and assets. Its portfolio includes a diverse range of security and access control systems, offered under multiple market-leading brands.

Gregg C. Sengstack joined the Allegion plc Board of Directors in December 2024. Since 1988, he has held various leadership roles at Franklin Electric Company, Inc., including Assistant Treasurer, Chief Financial Officer, Senior Vice President, President of Franklin Fueling Systems and International Water Group, President and Chief Operating Officer, and Chief Executive Officer from 2014 to July 2024. Sengstack holds a bachelor’s degree from Bucknell University and an MBA from the University of Chicago.

Opinion: We wrote this one up Insider Buying Week 12-07-24 – The Insiders Fund The CEO was buying at $140, and we didn’t see a compelling investment thesis then. Perhaps it’s time to move on it. We do like spin offs, and this is a pretty significant $1 million dollar buy. It also behaved well last Friday, hovering around breakeven all day. I think it goes higher based on technicals.

Name: Philip G Satre
Position: Director
Transaction Date: 02-18-2025 Shares Bought: 22,200 shares an Average Price Paid of $92.18 for Cost: $2,046,396

Company: WYNN Resorts LTD (WYNN):

Wynn Resorts, Limited is a leading designer, developer, and operator of integrated resorts featuring luxury hotel accommodations, high-end retail spaces, diverse dining and entertainment options, meeting and convention facilities, and gaming. With a strong emphasis on guest experience, employee excellence, and community engagement, the company leverages extensive design and operational expertise across multiple gaming jurisdictions, providing a competitive advantage over other gaming enterprises.

Mr. Satre has served as the Non-Executive Chairman of the Board since November 2018, after joining as Vice Chairman in August 2018. In the not-for-profit sector, he is President of the National Center for Responsible Gaming, a Trustee of The National World War II Museum, and a Board member of the National Automobile Museum – The Harrah Collection in Reno, NV. Additionally, he serves on the Stanford Alumni Association Board of Directors. He holds a Bachelor of Arts from Stanford University and a Juris Doctor from the University of California, Davis.

Opinion: I think something could be going on at the Wynn, but I don’t know what it is. This is a pretty big buy, and he probably didn’t have a gun to his head making him shell out $2million to buy stock. Fly on the wall Reports Q4 revenue $1.84B, consensus $1.77B. “Our fourth quarter and full year results reflect continued strength throughout our business, setting another full-year record for Adjusted Property EBITDAR for the Company in 2024, with another annual record in Las Vegas,” said Craig Billings, CEO of Wynn Resorts, Limited. “We delivered strong quarterly performance in Las Vegas on very tough comparables and drove healthy market share in Macau led by strength in both premium mass and VIP. In addition, construction of the Wynn Al Marjan Island project in the UAE continued to advance, and the thirty-fifth floor of the hotel tower was recently completed. We are confident the resort will be a ‘must see’ tourism destination in the UAE and will support strong long-term free cash flow growth.

Forbes November 22, 2024 The gaming authority of the United Arab Emirates just handed Wynn Resorts a second massive win in as many months. After awarding Wynn the first commercial casino license in the emirates in October, the head of the UAE’s General Commercial Gaming Regulatory Authority (GCGRA) said this week that the emirates won’t be holding the door open for other casino operators to flood into the nascent market anytime soon.

Beynon told Forbes last month that he thought Wynn had a five-year head start on rival casino operators in the UAE, a prediction that now looks rock solid.

Outside of Egypt and Lebanon, casinos are practically nonexistent in the Middle East, since majority Muslim countries tend to ban gambling. Wynn is building what’s known in the industry an “integrated resort,” meaning it offers gaming as well as a hotel, entertainment, shopping and a slew of other amenities.

The hotel tower, which will eventually rise to 1,000 feet, has gained 144 feet in 100 days. At this rate, they’re on track to top off the skyscraper in December 2025 and open the resort in the first quarter of 2027.

Name: John G Rice
Position: Director
Transaction Date: 02-13-2025 Shares Bought: 10,000 shares an Average Price Paid of $77 for Cost: $770,000

Company: American International Group Inc. (AIG):

American International Group, Inc. (AIG), founded in 1919 by Cornelius Vander Starr, is a leading global insurance company providing risk management and asset protection solutions to individuals and businesses across more than 200 countries and jurisdictions. Through its network partners, operations, licenses, and authorizations, AIG delivers comprehensive insurance services in an increasingly complex and evolving risk landscape. The company continues to strengthen its position as an industry leader, striving for top performance and long-term value creation for stakeholders. Its achievements in 2024 demonstrate its ability to successfully execute multiple complex initiatives with excellence.

John G. Rice has served on the AIG Board of Directors since March 17, 2022. From 2018 to 2020, he was Non-Executive Chairman of GE Gas Power, following seven years as President and CEO of the GE Global Growth Organization. Before retiring as Vice Chairman of General Electric in 2018, he held key leadership roles in global markets, including Hong Kong, Singapore, and Canada. Rice holds a Bachelor of Arts degree from Hamilton College.

Opinion: “2024 was an outstanding year of accomplishments for AIG in which we successfully executed multiple complex strategic and operational priorities, delivered outstanding financial results and created exceptional value for our clients and stakeholders. We strengthened the company’s capital structure, improved our financial performance, and achieved a historic milestone with the deconsolidation of Corebridge Financial, which enabled us to organize our business into three distinct operating segments,” reported by Fly on the Wall Peter Zaffino, AIG Chairman & Chief Executive Officer.

Frankly, this is too complex for me.

Name: Michael F Mahoney
Position: Director
Transaction Date: 02-18-2025 Shares Bought: 30,000 shares an Average Price Paid of $66.7 for Cost: $2,001,000

Company: CVS Health Corp (CVS):

CVS Health Corporation is a leading health solutions company dedicated to building a comprehensive healthcare ecosystem that connects care and meets consumer needs wherever they are. As of December 31, 2024, the company operated more than 9,000 retail locations and primary care medical clinics, a leading pharmacy benefits management service with approximately 90 million plan members, expanding specialty pharmacy solutions, and a dedicated senior pharmacy care business serving over 800,000 patients annually. Through an integrated, technology-driven care model, the company continues to create new sources of value by expanding personalized healthcare delivery and services. This approach enhances access to quality care, improves health outcomes, and reduces overall healthcare costs.

Mr. Mahoney has served as President of Boston Scientific Corporation, a global developer, manufacturer, and marketer of medical devices, since October 2011. He has been Chief Executive Officer and a member of the Board of Directors since November 2012 and was appointed Chairman of the Board in May 2016. Before joining Boston Scientific, he held the role of Worldwide Company Group Chairman at Johnson & Johnson’s DePuy franchise, an orthopedics and neurosciences business, from April 2007 to January 2011. With extensive experience leading global medical device companies, he has demonstrated expertise in managing complex organizations, building strong leadership teams, and developing international markets. His proven ability to execute successful business strategies and drive operational excellence further strengthens his leadership profile. Additionally, his tenure at Boston Scientific and Johnson & Johnson has provided deep insight into the global medical products industry and its multifaceted operations.

Opinion: Why is CVS on fire? It seems like the health insurance business it bought; Aetna is recovering. CVS Health acquired Aetna in 2018, making Aetna a subsidiary of CVS Health. This merger combined CVS’s extensive pharmacy and retail operations with Aetna’s health insurance offerings, creating a more integrated healthcare service model. The goal of the acquisition was to streamline healthcare delivery, improve patient outcomes, and reduce overall healthcare costs by aligning pharmacy services with insurance benefits.

Name: Frank H Laukien
Position: President & CEO 10% Owner
Transaction Date: 02-18-2025 Shares Bought: 20,000 shares an Average Price Paid of $50.92 for Cost: $1,018,330

Company: Bruker Corp (BRKR):

Bruker Corporation develops, manufactures, and distributes high-performance scientific instruments and analytical and diagnostic solutions that enable customers to explore life and materials at microscopic, molecular, and cellular levels. Many of its products are used to detect, measure, and visualize the structural characteristics of chemical, biological, and industrial material samples. These solutions cater to the evolving needs of diverse sectors, including life science research, pharmaceuticals, biotechnology, applied markets, cell biology, clinical research, microbiology, in-vitro diagnostics, nanotechnology, and materials science research. The company’s technology platforms encompass magnetic resonance technologies, mass spectrometry, gas and liquid chromatography, triple quadrupole mass spectrometry, X-ray technologies, spark-optical emission spectroscopy, atomic force microscopy, stylus and optical metrology, fluorescence optical microscopy, and infrared and Raman molecular spectroscopy.

Dr. Frank H. Laukien has served as Chairman, President, and Chief Executive Officer of Bruker Corporation since February 1991 and is the company’s largest stockholder. He is also a director of various Bruker subsidiaries, none of which are publicly traded. Previously, he served multiple terms as a director of ALDA, including as Chairman from 2002 to 2003. As the largest stockholder and a leader in Bruker’s profitable growth, Dr. Laukien brings to the Board a deep understanding of the company’s operations. His extensive executive experience spans organizational management, strategic planning, finance, global business development, and life science tools markets. Additionally, his scientific and technical expertise provides valuable insight into key technologies, markets, and industry dynamics. Dr. Laukien holds a Bachelor of Science degree in physics from MIT and a Ph.D. in chemical physics from Harvard University. He was a member of the Dean’s Advisory Committee of the MIT School of Science until 2014 and a Trustee of the Rivers School in Weston, Massachusetts, until 2013. In May 2017, he was elected a senator of acatech, the German National Academy of Science and Engineering. In 2021, he was appointed as a Visiting Scholar at the Department of Chemistry & Chemical Biology at Harvard University.

Opinion: We own this and are losing a little money on it, so it was great to see the company’s largest shareholder buying more. Bruker has been a great stock since 2008 but the last three years, it’s gone nowhere. Frank owns about 40 million shares, so he certainly doesn’t need anymore. My guess is that this one has been building a base and will eventually resume its pattern, lower left to upper right. Just where you want to be with a great growth stock,

Name: Richard B. Barker
Position: EVP and CFO
Transaction Date: 02-20-2025 Shares Bought: 8,000 shares an Average Price Paid of $27.94 for Cost: $223,520

Name: Robert W. Eifler
Position: President & CEO
Transaction Date: 02-20-2025 Shares Bought: 12,568 shares an Average Price Paid of $27.85 for Cost: $350,019

Company: Noble Corp plc (NE):

Noble Corporation plc, founded in 1921, is a leading offshore drilling contractor serving the global oil and gas industry. Headquartered in Sugar Land, Texas, the company operates a diverse fleet of mobile offshore drilling units, including drillships, semi-submersibles, and jack-up rigs. Noble provides comprehensive contract drilling services, leveraging its advanced fleet to meet the evolving demands of energy producers worldwide.

Mr. Barker was appointed Executive Vice President and Chief Financial Officer of Noble in January 2024, after serving as Senior Vice President and Chief Financial Officer since March 2020. He joined Noble following his tenure in investment banking at Moelis & Company from 2019 to 2020 and previously at JPMorgan Chase & Co., where he specialized in oilfield services and equipment. Mr. Barker holds a Bachelor of Arts in Mathematical Economic Analysis and Managerial Studies from Rice University, graduating with high honors.

Robert W. Eifler was appointed President and Chief Executive Officer of Noble Corporation plc in May 2020. Since joining the company in February 2005 through the management development program, he has held various operational and marketing roles across global markets. Mr. Eifler holds a Bachelor of Science in Systems Engineering and a Master of Business Administration from the University of Virginia.

Opinion: Drill baby drill. It’s not hard to understand how oil and gas industry executives are more optimistic. What I find hard to reconcile how Trump’s desire for much lower prices will stimulate more business for drillers and production exploration companies.

Name: Darren Richman
Position: See Remarks
Transaction Date: 02-13-2025 Shares Bought: 265,000 shares an Average Price Paid of $22.65 for Cost: $6,001,505

Company: Millrose Properties Inc. (MRP):

Millrose Properties is a Homesite Option Purchase Platform, representing the evolution of residential land banking and enabling homebuilders to expand controlled land positions with greater capital efficiency. As a publicly traded Homesite Option Purchase Platform, Millrose offers investors a distinctive, income-generating investment opportunity backed by residential real estate—an asset class historically accessible only to institutional investors.

Darren L. Richman is the Chief Executive Officer and President of Millrose Properties, Inc., a publicly traded Real Estate Investment Trust specializing in land banking. He co-founded Kennedy Lewis Investment Management in 2017 and serves as Co-Managing Partner, Co-Chairing the firm’s Investment and Executive Committees. In February 2025, under his leadership, Millrose Properties acquired approximately 24,000 homesites, strengthening its portfolio and expanding partnerships within the homebuilding industry. With extensive experience in investment management and strategic acquisitions, Richman plays a pivotal role in driving Millrose Properties’ growth and innovation in the residential real estate sector.

Opinion: Land banking. Not sure I understand the business model. Aren’t most of the publicly traded builders already in this business?

Name: Gerard G Colella
Position: Director
Transaction Date: 02-13-2025 Shares Bought: 5,500 shares an Average Price Paid of $20.47 for Cost: $112,585

Name: Christopher J Stephens
Position: Director
Transaction Date: 02-13-2025 Shares Bought: 5,000 shares an Average Price Paid of $20.27 for Cost: $101,350

Name: David J. Wilson
Position: President & CEO
Transaction Date: 02-14-2025 Shares Bought: 10,857 shares an Average Price Paid of $20.5 for Cost: $222,569

Company: Columbus Mckinnon Corp (CMCO):

Columbus McKinnon Corporation, founded in 1875 and headquartered in Charlotte, North Carolina, is a global leader in designing, manufacturing, and marketing intelligent motion solutions that enhance efficiency and ergonomics in material movement, lifting, positioning, and securing. With a focus on commercial and industrial applications, the company delivers safety, reliability, and quality through exceptional design and technical expertise. Its products are utilized in mission-critical applications and are backed by well-established, trusted brands recognized within the industry. Key market verticals include manufacturing, transportation, energy and utilities, life sciences, consumer packaged goods, and e-commerce, supply chain, and warehousing.

Gerard G. Colella joined the Columbus McKinnon Corporation Board of Directors in November 2021 and currently serves as Chair. He is a member of the Governance and Nomination Committee and the Compensation Committee. With extensive experience in industrial technology and a proven track record of expanding into new markets while driving sustainable and profitable growth, he plays a key role in shaping the company’s strategy. Colella retired as President and CEO of MKS in 2020 after a 36-year career in increasingly senior leadership positions. He holds a bachelor’s degree in secondary education and teaching from the University of Lowell and an MBA from Southern New Hampshire University. He has also been awarded an honorary doctorate from the University of Massachusetts.

Christopher J. Stephens Jr. joined the Columbus McKinnon Corporation Board of Directors in March 2024. With over 35 years of experience in financial and operational leadership, he has held senior roles, including Senior Vice President and Chief Financial Officer at Sealed Air Corporation and Barnes Group Inc. His background also includes finance leadership positions at Boeing and Honeywell. In addition to his role at Columbus McKinnon, he serves on the boards of PGT Innovations and Fairfield University’s Dolan School of Business Advisory Board. Stephens holds a Bachelor of Science in Business Administration from the University of Akron and a Master of Business Administration from Virginia Tech.

David J. Wilson became President and CEO of Columbus McKinnon Corporation on June 1, 2020. Before joining Columbus McKinnon, he served as President of the Pumps Division at Flowserve Corporation from 2018 to 2020. He is a member of the National Association of Manufacturers’ Board of Directors, the Modine Manufacturing Company’s Board of Directors, and the Columbus McKinnon Corporation Board. Wilson holds a bachelor’s degree in electrical engineering from the University of Massachusetts and a master’s degree in business administration from Babson College’s F.W. Olin Graduate School of Business. He has also completed graduate-level studies at the University of Lausanne/IMD in Lausanne, Switzerland, and Tsinghua University in Beijing, China.

Opinion:

Name: Mark Prince
Position: Director
Transaction Date: 02-12-2025 Shares Bought: 21,000 shares an Average Price Paid of $10.96 for Cost: $230,160

Company: Energy Services of America Corp (ESOA):

Energy Services of America Corporation, founded in 2006, is a contractor and service provider operating primarily in the mid-Atlantic and central regions of the United States. The company serves customers in the natural gas, petroleum, water distribution, automotive, chemical, and power sectors. Specializing in the construction, replacement, and maintenance of natural gas pipelines and storage facilities, it supports both utility and private natural gas companies. With expertise in both interstate and intrastate pipeline construction, the company focuses primarily on the latter. In addition to providing comprehensive pipeline services to the oil industry, it has expanded its capabilities to include broadband and solar energy system construction, as well as civil and general contracting services.

Mark S. Prince joined the Board of Directors of Energy Services of America Corporation in April 2022. He serves as President and CEO of HB&W, Inc. Financial Services, a holding company overseeing multiple financial services businesses. Previously, he was Managing Director at JPMorgan Chase from 1995 to 2011. Prince holds a B.A. in Economics from Kenyon College and graduated with honors from the American Bankers Association Graduate Commercial Lending School.

Opinion:

Name: Achal Agarwal
Position: Director
Transaction Date: 02-18-2025 Shares Bought: 40,000 shares an Average Price Paid of $10.09 for Cost: $403,793

Company: Amcor plc (AMCR):

Amcor plc, established in 1896 in Melbourne, Australia, and now headquartered in Zürich, Switzerland, is a global leader in packaging solutions. The company specializes in designing and manufacturing flexible packaging, rigid containers, customized cartons, and closures for the food, beverage, pharmaceutical, medical device, and personal care industries. Operating in over 40 countries, Amcor remains committed to innovation and sustainability while continuously strengthening its market position and expanding its global footprint.

Achal Agarwal has served as an Independent Non-Executive Director of Amcor plc since November 10, 2021. Before joining Amcor, he held the position of Global Chief Strategy and Transformation Officer at Kimberly-Clark Corporation and previously served as President of the Asia Pacific and North Asia regions. Prior to his tenure at Kimberly-Clark, he was Chief Operating Officer for Beverages at PepsiCo in Greater China and also held the role of Commercial Manager at ICI India. Agarwal holds a Bachelor of Arts (Honors) in History, an MBA from the University of Delhi, and a degree from the Advanced Management Program at The Wharton School, University of Pennsylvania.

Opinion:

Name: Ahmed Pasha
Position: SVP & Chief Financial Officer
Transaction Date: 02-14-2025 Shares Bought: 15,500 shares an Average Price Paid of $6.48 for Cost: $100,440

Name: Julian Nebreda
Position: President and CEO
Transaction Date: 02-13-2025 Shares Bought: 23,500 shares an Average Price Paid of $6.3526 for Cost: $149,286

Company: Fluence Energy Inc. (FLNC):

Fluence Energy, Inc., founded in 2018 as a collaboration between Siemens and AES Corporation, is a global leader in energy storage products, services, and cloud-based software for renewables and storage. Headquartered in Arlington, Virginia, the company operates in 47 markets worldwide through the Fluence IQ Platform, which provides modular, scalable energy storage solutions and AI-enabled SaaS products. These solutions assist utilities, developers, and commercial and industrial customers in managing and optimizing renewable energy and storage assets, supporting the transition to more resilient and sustainable electric grids.

Ahmed Pasha has served as Senior Vice President and Chief Financial Officer of Fluence Energy, Inc. since January 1, 2024. Before joining Fluence, he spent nearly 30 years at The AES Corporation, holding various leadership roles, including Chief Financial Officer of the U.S. Utilities and Conventional Generation business from 2022 to 2023, as well as Vice President, Global Treasurer, and Head of Investor Relations. He holds a Bachelor’s degree in Finance from the University of Punjab and is a Chartered Accountant.

Julian Nebreda has served as President and CEO of Fluence Energy, Inc. since September 2022 and has been a member of the company’s Board of Directors since September 2021. Before joining Fluence, he held several leadership roles at The AES Corporation, including President of the South America Strategic Business Unit from 2018 to 2022, President of the AES Brazil Strategic Business Unit from 2016 to 2018, and President of the Europe Strategic Business Unit from 2009 to 2016. Nebreda holds a legal degree from Universidad Católica Andrés Bello in Caracas, Venezuela, and two Master of Laws degrees from Georgetown University.

Opinion: I keep finding new ways to lose money on Fluence. When I tell you to buy, you sell.

Name: Robert F Moran
Position: Director
Transaction Date: 02-18-2025 Shares Bought: 74,850 shares an Average Price Paid of $6.0107 for Cost: $449,899

Company: Hanesbrands Inc. (HBI):

Hanesbrands Inc. is a socially responsible global leader in everyday iconic apparel, dedicated to creating a more comfortable world for everyone. Operating across the Americas, Australia, and Asia, the company owns a portfolio of some of the world’s most recognized brands in the core basic and innerwear apparel categories, including Hanes, Bonds, Bali, Maidenform, Playtex, Bras N Things, Berlei, Wonderbra, Zorba, JMS/Just My Size, and Comfortwash. Through these iconic brands, the company delivers high-quality, affordable comfort, produced responsibly with ethically sourced materials. Trusted by consumers for generations, its products are found in nine out of ten U.S. households, making it the leading seller of innerwear.

Robert F. Moran has been a member of the Board of Directors since July 2013 and currently serves as Chief Executive Officer of UNATION, Inc. He was a member of the Board of Directors of GNC Holdings, Inc., a global specialty retailer of health and wellness products, from 2013 to 2019, and served as Chairman from 2017 to 2018. Additionally, he held the role of Interim Chief Executive Officer at GNC from 2016 to 2017. His career also includes 20 years at Sears, Roebuck and Company, where he held various financial and merchandising roles, including President, Chief Executive Officer, and Chief Financial Officer of Sears de Mexico. He currently serves as a director of UNATION, Inc. and The Fressnapf Group and is a member of the Board of Trustees at Villanova University.

Opinion: These most be amongst the most unhappy shareholders on the planet. Few companies have managed to destroy capital as well has Hanesbrand, closing Friday below its closing price ten years ago.

Name: H. Michael Krimbill
Position: Chief Executive Officer
Transaction Date: 02-13-2025 Shares Bought: 100,000 shares an Average Price Paid of $4.6255 for Cost: $462,555

Company: NGL Energy Partners LP (NGL):

NGL Energy Partners LP, founded in 2010 and based in Tulsa, Oklahoma, is a diversified midstream master limited partnership offering a range of services to producers and end users. Its operations encompass the transportation, storage, blending, and sale of crude oil, natural gas liquids, refined products, renewable energy, and water solutions. The company operates across three key segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics, delivering comprehensive midstream services throughout the United States. The Crude Oil Logistics segment manages the procurement and transportation of crude oil to refineries through an extensive network of pipelines, storage terminals, and transportation assets.

H. Michael Krimbill has served as Chief Executive Officer and a member of the Board of Directors of NGL Energy Partners LP since 2010. From 2004 to 2007, he was President and Chief Financial Officer of Energy Transfer Partners LP and a Director of Energy Transfer Equity, the general partner of Energy Transfer Partners. Prior to that, he held various leadership roles at Heritage Propane Partners, the predecessor to Energy Transfer Partners, from 1990 to 2004, including Chief Financial Officer and CEO. Krimbill is a graduate of Michigan State University.

Opinion: Another perennial loser. It’s so bad it might actually be good now.

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This blog is solely for educational purposes and the author’s own amusement. IT IS NOT INVESTMENT ADVICE. 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.

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 as soon as practically possible. 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. When I have time, over the weekend, I’ll add some preliminary analysis to the Opinion at the end. Sometimes I won’t update this for a couple of weeks or more. A good way to use this blog is as I do, it’s a reference point and filing cabinet for various stocks with notable insider buying. It’s one of many tools I use. I regularly live on Chat GPT and Microsoft Copilot now. I find the footnotes research very helpful in eliminating errors from AI hallucinations.

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.