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This is the best time of year to be invested, statistically speaking. Why that is, no one really knows for sure. Perhaps it has something to do with animal spirits, people feeling good about themselves, others, who knows? Animal spirits can’t be overrated. People are more likely to bet on the future when they feel good about the present. This statistical stock market tailwind isn’t as strong in bear markets, though. The future for most people is just the day after tomorrow and doesn’t look that different than today. Animal spirits will need all the help they can get this year. The Fed seems likely to give it a little holiday cheer with its somewhat less hawkish tune.
The average insider purchase we write about this week rose on average 3.41% versus the S&P 500’s 1.34%.
Name: Jason Marc Adler
Position: Director
Transaction Date: 2022-11-17 Shares Bought: 110,400 Average Price Paid: $2.96 Cost: $327,243.00
Company: Cronos Group Inc. (CRON)
The Cronos Group is a cutting-edge international cannabis firm dedicated to developing cannabis research, technology, and product development to create disruptive intellectual property. It also aims to create an iconic brand portfolio. The Company created the United States segment on September 5, 2019, as a consequence of acquiring four Redwood Holding Group, LLC companies. Redwood produces, markets, and distributes dietary supplements containing cannabinoids derived from U.S. hemp and cosmetic goods through retail, hospitality, and e-commerce partner channels in the country. The cultivation, production, and marketing of cannabis and cannabis-derived products for the medical and adult markets are activities of the Rest of the World operating segment.
Jason Marc Adler, who founded AlphaBet Partners LP, Saiers Capital LLC, Alphabet Ventures LLC, and Geronimo LLC, is the managing partner of Gotham Green Partners LLC. Mr. Adler also serves as a principal in AlphaBet Partners Group LP and a member of the board of Cronos Group, Inc. Mr. Adler has held the positions of CEO and managing member at Alphabet Ventures LLC, CEO of Saiers Capital LLC, and CEO of Alphabet Partners LP in the past. The University of Rhode Island awarded Mr. Adler a bachelor’s degree.
Opinion: More buying by Adler. In the last two weeks, Adler has purchased over $1 million in stock. This is the company Altria (M0) bought a 45% stake in 2018 for $1.8 Billion in 2018. During the same era, Constellation Brands STZ spent billions for a stake in Canopy Growth. That kicked off the gold rush in cannabis stocks that turned into a major bust.
Today Cronos has a market cap of $1.8 Billion. Basically, Altria’s investment is worth half of that paid. I still believe, though, that Cronos is committed to building a multi-level cannabis global. business from health and wellness to recreational use.
The company has a deal with Ginko Bioworks to enable accelerated commercialization of such cultured cannabinoids, ultimately resulting in the Company’s launching of its first cultured cannabinoid product containing cannabigerol (“CBG”) in the second half of 2021.
Cannabis is one of the most promising places to invest, yet no one has made any real money from publicly traded companies. Analysts from Fortune Business Insights project that the global cannabis market will grow at a compounded annual rate of 32% until 2028, and by then, it will be worth almost $198 billion compared with $28 billion in 2021. Perhaps the real money is something that the pharmaceutical industry has never managed to make, an opiate fee nonaddictive successful pain medicine.
Name: Brent Simonich
Position: VP
Transaction Date: 2022-11-18 Shares Bought: 920 Average Price Paid: $219.15 Cost: $201,618.00
Company: LPL Financial Holdings Inc. (LPLA)
LPL is the largest independent broker-dealer in the country, a preeminent investment advisory firm, and a premier custodian serving the advisor-mediated advice market. To support clients in operating their ideal businesses, the company provides a fully customizable platform that includes integrated technology, brokerage, advisory platforms, digital capabilities, clearing and compliance services, business solutions, and strategic growth resources. The business is steadfast in supporting the advisor-centered model and its conviction that Americans should have access to individualized financial advice from a financial advisor. Because financial advisors are the ones who know their clients the best, the company thinks that they should be free to manage their client relationships. The company also thinks that investors benefit from working with financial advisors because they get better results.
Brent Simonich is employed by LPL Financial, a 1989-founded finance company with an estimated 6,051 employees, as an Executive Vice President, Chief Accounting Officer, and Treasurer. Their management level is C-Level, and they are a member of the Finance Department’s Accounting team. Currently, San Diego, California, is where Brent is based.
Opinion: 10,000 boomers a day turning 60 have one singular question that creates a lot of business for financial planners posing with the answers. Do I have enough money to make it? How much can I spend and what rate of return do I need? Computer models spit out easy answers to those complex questions, and high margin rates create a lot of free cash flow. It’s good times for financial advisors and margin balances. Margin interest rates are making broker-dealer’s bank. It’s good times for broker-dealers, but life does throw curve balls, and no one knows how long this state of bliss will last.
Name: Michael D Eisner
Position: Director
Transaction Date: 2022-11-22 Shares Bought: 106,241 Average Price Paid: $47.13 Cost: $5,006,792.00
Company: IAC Inc. (IAC)
IAC Inc. is a media and internet corporation that owns and runs dating websites, mobile apps, and online search engines. The business runs digital and mobile businesses, produces magazines, operates newsstands, and distributes digital material via websites. It does business under the ANGI, Care.com, and Dotdash brands. Among the other brands owned by the corporation are Ask Media Group, Bluecrew, Handy, Investopedia, and Aily Beast. It conducts business in the US, the UK, the Netherlands, France, Germany, and Italy. In the US, it oversees the management of executive and administrative offices, operations centers, data centers, sales offices, and satellite offices. IAC’s US headquarters are in New York.
Michael Eisner started his career at ABC, a pioneer in the American entertainment sector for more than 40 years, where he helped the network rise from third to first place in primetime, daytime, and children’s television, and quickly rose to the position of president of Paramount Pictures. In 2005, Mr. Eisner established the Tornante Company. In 2007, he purchased The Topps Company, a well-known manufacturer and distributor of sports cards and specialty candies, turning Topps into a full-fledged sports media brand. Mr. Eisner founded Vuguru, a new media company that creates top-notch content for the Internet and develops digital platforms, through Tornante. Mr. Eisner is a significant adviser to Diversion, Inc., a business established in early 2010 with funding from Tornante to create social games.
Opinion: IAC has had a tough year. I doubt if Eisner’s purchase will change the sentiment. The conglomeration of businesses and brands will have to show conventional improving fundamentals. The online lustre is gone.
Name: Patrick G Ryan
Position: CEO/10% Owner
Transaction Date: 2022-11-21 Shares Bought: 288,038 Average Price Paid: $38.26 Cost: $11,021,025.00
Company: Ryan Specialty Holdings Inc. (RYAN)
Ryan Specialty Holdings Inc., established by Patrick G. Ryan in 2010, offers specialized products and services to insurance brokers, agents, and carriers. As a wholesale broker and managing underwriter with delegated power from insurance carriers, the organization offers distribution, underwriting, product creation, administration, and risk management services. The business aims to give insurance brokers, agents, and carriers cutting-edge, creative specialty insurance solutions. The business helps retail insurance brokers place sophisticated or otherwise challenging risks. The company works with retail and wholesale insurance brokers to source, onboard, underwrite, and service these same risks for insurance carriers.
Patrick G. Ryan, a well-known businessman and pioneer in the insurance industry founded Ryan Specialty in 2010. Ryan Specialty is a global holding firm that offers brokers, agents, and insurers specialized services in wholesale brokerage, underwriting management, and other areas. The business has several offices in Europe, the UK, and North America. Mr. Ryan formed Aon Corporation and ran it as Chairman and CEO for 41 years before starting Ryan Specialty. Throughout his career, Mr. Ryan has won several awards. Mr. Ryan was honored in 1987 with the prestigious Horatio Alger Award, which recognizes individuals who uphold the values of honesty, persistence, hard work, and concern for others. Mr. Ryan was admitted in 2008 to the American Academy of Arts and Sciences, which was established in 1780 and is one of the country’s oldest and most prestigious honorary societies.
Opinion: CEO Ryan must have a lot of confidence in his namesake company. The stock cratered 22% on Q3 earnings. JPMorgan analyst Jimmy Bhullar lowered the firm’s price target on Ryan Specialty Group to $39 from $40 and kept an Underweight rating on the shares. It looks like Ryan used the sell-off to increase his holdings with spending $55.8M to purchase shares at an average price of $37.20.
Name: Michael L. Hollis
Position: President
Transaction Date: 2022-11-21 Shares Bought: 43,002 Average Price Paid: $21.96 Cost: $944,443.00
Company: HighPeak Energy Inc. (HPK)
HighPeak Energy is an independent crude oil, and natural gas company focused on acquiring, developing, and producing crude oil, NGLs, and natural gas reserves. It was founded in Delaware on October 29, 2019. The Company’s assets are mainly situated in Howard County, Texas, a part of the Midland Basin’s northeastern region and home to a lot of crude oil. The Signal Peak area is located in the south, and the northern Flat Top area is where the Company has two sizable contiguous land positions focusing on the Howard County region of the Midland Basin, notably HighPeak Energy. The Company’s assets include rights, titles, and interests in natural gas and crude oil properties, most of which are situated in Howard County, Texas, a Midland Basin region rich in crude oil.
Mr. Hollis worked as President and COO of Diamondback Energy, Inc., an oil and gas producer focused on the Permian Basin, from January 2017 to September 2019 before joining HighPeak. Before that, he had been COO since 2015 and Vice President of Drilling. Since 2011, Mr. Hollis has also been a member of the boards of directors for Diamondback and Viper Energy Partners LP. Before his employment at Diamondback, Mr. Hollis had positions of increasing importance in production, completions, and drilling engineering at ConocoPhillips and Burlington Resources Inc. He was also a drilling manager at Chesapeake Energy Corporation. Mr. Hollis earned a Bachelor of Science in Chemical Engineering from Louisiana State University in 1998 and has more than 20 years of experience in the oil and gas industry.
Opinion: HPK reported EPS 85c vs 8c last year. Reports Q3 revenue $204.114M vs $47.472M. HighPeak CEO, Jack Hightower said “Looking over our brief history as a public company, we have expanded our development program across the entirety of our acreage position and in several formations and, as a result, we have delineated significant proven reserves. We have also continued to improve performance as evidenced by our 2022 average well results outperforming earlier vintage wells. This speaks to the quality of the reservoirs across our entire block and the bright future ahead for HighPeak. In addition, we have increased production and cash flow at a rate rarely ever seen in the industry and we accomplished most of this growth organically. For example, our current quarter to date production rate is over 60% higher than our second quarter average. HighPeak achieved this monumental feat, in spite of experiencing the same supply chain constraints and inflationary pressures faced by our industry throughout the past year, while maintaining a very healthy balance sheet.”
With oil and gas hedged at great prices through the 1st quarter, HPK will likely report another blockbuster quarter. High Peak Energy could be trading a value investor’s wet dream of just a 6.45 P.E. ratio if the good times can continue. HPK looks cheap, and trades where it was when Russia invaded Ukraine and weaponized energy. This is the largest purchase Hollis has made since he left Diamond Back to lead High Peak as CEO. Hollis had a great history at Diamond Back (FANG). This one should be bought.
Name: Matthew J Gould
Position: VP
Transaction Date: 2022-11-17 Shares Bought: 14,400 Average Price Paid: $20.24 Cost: $291,504.00
Company: BRT Apartments Corp.(BRT)
Name: Jeffrey Gould
Position: CEO
Transaction Date: 2022-11-17 Shares Bought: 14,400 Average Price Paid: $20.24 Cost: $291,504.00
Company: BRT Apartments Corp.(BRT)
BRT Apartments Corp. is an internally managed real estate investment trust, or REIT, that specializes in the acquisition, management, and, to a lesser extent, the development of multifamily properties. The company’s primary interests include multifamily property ownership, management, and development. The company typically owns multifamily properties like townhomes, mid-rise apartments, or garden apartments that offer residents access to amenities like a clubhouse, swimming pool, laundry rooms, and cable television. The typical length of a residential lease is one year, and security deposits up to the amount of one month’s rent may be required. These properties have a large percentage of their units leased at market rates.
Businessman Matthew J. Gould has served as the CEO of 5 separate organizations. He currently holds the positions of Chairman of Gould Investors LP, Director and Senior Vice President of Majestic Property Management Corp., Chairman and Chief Executive Officer of Georgetown Partners, Inc., Chief Executive Officer of Rainbow Realty Group LLC, and Chief Executive Officer of Rainbow MJ Advisors LLC. Majestic Property Management Corp. is a subsidiary of Gould Investors LP. In addition, Mr. Gould serves as chairman of One Liberty Properties, Inc., director and senior vice president of BRT Apartments Corp., and senior vice president of REIT Management Corp. He is also on the boards of Sportsvite LLC and Halsa Holdings LLC. Both the University of Michigan and Yeshiva University awarded Mr. Gould undergraduate and graduate degrees.
Jeffrey A. Gould now holds the positions of Director and Senior Vice President of One Liberty Properties, Inc., President, Chief Executive Officer, and Director at BRT Apartments Corp. In addition, Mr. Gould serves as managing general partner at Gould Investors LP, principal at UJA-Federation of New York; member of Young Presidents’ Organization, Inc., World Presidents’ Organization, and Chief Executives Organization, Inc.; principal at Federation Employment & Guidance Service, Inc.; director and senior vice president at Georgetown Partners, Inc.; and member-New York Finance Committee at Real Estate Board of New York, Inc.
Opinion: BRT. should be trading better than it is. Multifamily got a huge demand boost from Chairman Powell when he shut out millions of would-be homeowners who can no longer qualify for a mortgage based on higher rates jacking up their monthly payments. The Goulds keep purchasing stock, but the market gives it no respect like Rodney Dangerfield. The 4.8% dividend yield is what you get paid to wait.
Name: Martin E Franklin
Position: Director
Transaction Date: 2022-11-18 Shares Bought: 135,000 Average Price Paid: $18.90 Cost: $2,551,500.00
Company: Element Solutions Inc. (ESI)
The Delaware-based firm Element Solutions was founded in January 2014 and are a market leader in specialty chemicals. Its companies offer a wide range of solutions that improve the functionality of items that people use daily. These cutting-edge solutions, which were created through multi-step technological processes, support customers’ manufacturing processes in several important sectors, including offshore energy, communications and data storage infrastructure, semiconductor fabrication, consumer electronics, power electronics, automotive systems, industrial surface finishing, and consumer packaging. The companies sell goods almost always consumed by customers as a part of their manufacturing process, giving steady and dependable income streams as long as the items are replaced to continue manufacturing.
Martin founded Element Solutions in 2013 and held the position of Chairman of the Board until he was appointed Executive Chairman in January 2019. Martin has a remarkable track record of founding and growing long-term profitable enterprises. Martin is the co-founder and co-Chairman of Nomad Foods Limited, a leading European frozen foods company, a director of Restaurant Brands International Inc., one of the world’s largest quick-service restaurant companies, and a founder and co-Chairman of API Group Corporation. He is the principal and executive of Mariposa Capital LLC, a Miami-based family investment firm. He is also the chairman and controlling shareholder of Royal Oak Enterprises, LLC.
Opinion:Shares are held by a charitable Foundation in which the reporting person serves as a director and officer. The reporting person disclaims beneficial ownership of, and has no pecuniary interest in, these shares.
Name: Franklin M Berger
Position: Director
Transaction Date: 2022-11-21 Shares Bought: 122,000 Average Price Paid: $8.10 Cost: $987,790.00
Company: Rain Therapeutics Inc. (RAIN)
Rain Therapeutics Inc. is a late-stage precision oncology company developing oncogenic driver-targeting therapies with the ability to genetically select the patients who will most likely benefit from its therapies. In this method, patients are chosen based on the genetics of their tumors rather than the histology, using a tumor-agnostic approach. The company has in-licensed product candidates, each with a unique profile about the therapies currently on the market. The company plans to keep building the pipeline through targeted business development and internal research initiatives. Mouse double minute 2 is a small molecule oral inhibitor of the company’s lead product candidate, milademetan, which may be oncogenic in various cancers.
Franklin serves as managing director at FMB Research and a consultant to the biotechnology sector. He offers business development, strategic advisory, financing, partnering, and royalty acquisition advice to major biopharmaceutical companies, mid-capitalization biotechnology companies, specialized asset managers, and venture capital firms. Franklin has over 25 years of expertise in capital markets and economic research at Sectoral Asset Management, NEMO Fund, and J.P. Morgan Securities. He is also a biotechnology sector analyst. Franklin holds a BA in international relations from Johns Hopkins University, a MA in international economics from the same institution, and an MBA from Harvard Business School.
Opinion: Berger has it all, biotech analyst, director of research, and consultant to the biotech industry. One thing he lacks is a scientific background, for whatever that’s worth. It’s worth noting that Berger participated in the recent $50 Million direct offering at $5.83, purchasing 42,881 shares. Then 13 days later, he purchases 122,000 shares at $8.09, almost 40% higher in price. I don’t understand that, but I’m fascinated.
Name: Daniel J. Gill
Position: Chief Product Officer
Transaction Date: 2022-11-21 Shares Bought: 133,000 Average Price Paid: $7.62 Cost: $1,013,460.00
Company: Carvana Co. (CVNA)
The most popular online marketplace for buying and selling used vehicles is called Carvana. By providing customers with what they want, a large variety, excellent value and quality, clear pricing, and a straightforward, no-pressure transaction, the company is revolutionizing the used vehicle buying and selling experience. Every aspect of the operation, from inventory acquisition to delivery and overall online transaction convenience, has been created with this goal in mind. The business offers consumers time and money-saving, refreshingly unusual, and simple experiences purchasing and selling used cars. Customers may use their desktop or mobile devices to browse and find vehicles, check them using the platform’s proprietary 360-degree car image technology, get finance and warranty coverage, buy the vehicles, and arrange delivery or pick-up. Alternatively, a customer may get a definite offer for their car online by responding to a few questions without submitting any pictures or service history.
Daniel Gill has served as the company’s chief product officer since March 2015, in charge of all technological operations and key alliances. Mr. Gill worked in both consumer online companies and enterprise software companies before joining Carvana. From May 2014 through March 2015, Mr. Gill oversaw strategy and business development at Inflection. From 2007 until Wikia acquired Huddler in May 2014, he co-founded the business and led it as CEO. Stanford University awarded Mr. Gill a biology degree.
Opinion: Carvana is your classic battleground stock. There is large short interest, and a committed group of short sellers determined to see the company go out of business. On the other hand, the insiders are huge buyers and keep trying to rally their employees through multiple rounds of layoffs and cost-cutting. I don’t know where it settles out, but I believe Carvana will wind up as the king of used cars in the country, but it may have to reorganize on the way to the crown.
Name: Farner Jay
Position: CEO
Transaction Date: 2022-11-21 Shares Bought: 80,600 Average Price Paid: $7.44 Cost: $599,389.00
Company: Rocket Companies Inc. (RKT)
Name: Matthew Rizik
Position: Director
Transaction Date: 2022-11-21 Shares Bought: 8,700 Average Price Paid: $7.43 Cost: $64,670.00
Company: Rocket Companies Inc. (RKT)
The Detroit-based FinTech company Rocket Companies Inc. operates tech-driven real estate, mortgage, and financial services businesses. The business uses technology, analytics, and a highly skilled Rocket Cloud Force to provide customers assurance throughout life’s most complicated transactions and aid them in realizing the American dream. The business is dedicated to offering clients a platform-powered customer experience that leads the industry. The business thinks the well-known “Rocket” name is linked with offering straightforward, dependable digital solutions for complex transactions. The company’s founder and chairman, Dan Gilbert, deliberately established a solid cultural foundation of guiding principles, or “ISMs,” to serve as a framework for team members’ decision-making.
Jay Farner serves as the chairman and CEO of Rocket Companies. He began working with Quicken Loans in 1996, and since 1999, he has held positions of responsibility. Jay held the positions of President and Chief Marketing Officer until becoming CEO in 2017. In addition, he serves as the company’s CEO and director for a few of RHI’s subsidiaries. Jay serves on the boards of the Metropolitan Detroit YMCA, Bedrock Manufacturing, StockX, Community Solutions, Bizdom Fund, and Rocket Giving Fund. Jay earned a bachelor’s degree in finance from Michigan State University.
Matthew Rizik serves as a director at Rocket Companies. He joined RHI in 2012 as Chief Tax Officer and is now a company director. Matthew spent over 31 years working with customers in the banking and mortgage banking industries as a tax partner at PricewaterhouseCoopers LLP in Detroit before joining RHI. At the moment, Matthew has positions on the boards of NF Forward, City Year, the Gilbert Family Foundation, and the Motown Museum Legacy Council. Matthew graduated from Michigan State University with an accounting bachelor’s degree and a business administration master’s degree.
Opinion: I think the mortgage business will eventually come back with a roar. It might be better to say rocket back. Farmer has been buying on a preset buying plan, 10b 5-1, but others are also buying now.
Name: Michael O Randolfi
Position: CFO
Transaction Date: 2022-11-22 Shares Bought: 100,000 Average Price Paid: $4.79 Cost: $478,750.00
Company: Sabre Corp. (SABR)
Delaware-based Sabre Corporation was established in December of that year. The only subsidiary of Sabre Corporation, Sabre Holdings Corporation, was acquired by Sabre Corporation on March 30, 2007. The only direct subsidiary and main operating subsidiary of Sabre Holdings is Sabre GLBL Inc. All businesses are run by Sabre GLBL or its direct or indirect subsidiaries. We facilitate travel here at Sabre. Sabre, a software and technology company, powers the global travel industry. To retail, distribute, and fulfill travel, the business partners with airlines, hotels, agencies, and other travel partners. In a comprehensive travel marketplace, the company links the top travel suppliers in the world—including airlines, hotels, car rental companies, rail companies, cruise lines, and tour operators—with travelers.
Mike Randolfi is Saber’s Chief Financial Officer (CFO) and Executive Vice President (EVP), overseeing all corporate growth, reporting, and the organization’s worldwide finance team. To support the Sabre strategy, create long-term value for the investors, and ultimately succeed financially, he is in charge of the people, planning, and procedures that provide useful and timely insights. Mike has held CFO positions at companies like Adtalem Global Education, Groupon, Orbitz Worldwide, and, most recently, BFA Industries. He is an accomplished financial leader. Mike holds a bachelor’s degree in finance and accounting from the University of South Florida and an MBA from the Goizueta Business School of Emory University.
Opinion:
Name: Christopher J Sobecki
Position: Director
Transaction Date: 2022-11-17 Shares Bought: 30,000 Average Price Paid: $4.17 Cost: $125,124.00
Company: WW International Inc. (WW)
The world’s leading commercial weight control program and an award-winning digital subscription platform are the foundation of WW International Inc., a worldwide wellness firm. The business emphasized encouraging individuals to develop healthy lifestyle habits and aimed to democratize and provide wellness for everybody. The company is among the most recognizable and trusted brand names among customers concerned about their weight because of the nearly six decades of weight control experience, competence, and know-how. To help its customers form healthy habits and concentrate on their overall health and wellness, the company educates them and offers them support, advice, digital tools, and a motivating community. Workshops, consumer items, various events, and experiences, as well as digital offerings made available through apps and websites, all fall under the WW-branded services and goods category.
Mr. Sobecki has been a director since the acquisition by Artal Luxembourg S.A. in September 1999. From September 2016 until July 2017, he was a member of our company’s previous Interim Office of the Chief Executive Officer. Since joining The Invus Group, L.L.C. in 1989, Mr. Sobecki has served as Managing Director. Harvard Business School awarded him an M.B.A. From Purdue University, he also earned a B.S. in industrial engineering. Mr. Sobecki serves as a director for Lexicon Pharmaceuticals, Inc., as well as several other private businesses with Artal Group S.A. or Invus L.P. as stockholders.
Opinion: The only weightloss WW might truly accomplish is the size of your wallet.
Name: Chaim Hurvitz
Position: Director
Transaction Date: 2022-10-21 Shares Bought: 500,000 Average Price Paid: $1.03 Cost: $514,905.00
Company: NRX Pharmaceuticals Inc. (NRXP)
NRX is a pharmaceutical company in the clinical stages that creates novel therapeutics for treating serious pulmonary diseases and central nervous system disorders through its wholly-owned operating subsidiaries, NeuroRx, Inc., a Delaware corporation, and NeuroRx 2015 LTD, an Israeli limited liability company. In 2021, the firm merged with Big Rock Partners Acquisition Corp. to become a publicly traded, Nasdaq-listed company. The Company’s strategy is to use cutting-edge science on well-known molecules in the search for treatments for serious conditions that still have unmet needs, including fatal ones. The Company recently re-prioritized its development activities and geographic focus in light of recent geopolitical changes and other developments.
Chaim Hurvitz, an Israeli entrepreneur, started CH Health and has served as the CEO of eight separate businesses. He now serves as Chairman of Aerodentis, Dror Ortho-Design Ltd., Univo Pharmaceuticals Ltd., and Chief Executive Officer of CH Health. In addition to serving on the boards of 8 other businesses, he is the chairman of The Institute for the Advancement of Education in Jaffa, the head of the pharmaceutical branch at the Manufacturers Association of Israel, and a member of the Israel Diamond Manufacturers Association Ltd. Chaim Hurvitz has held positions such as chairman of Galmed Pharmaceuticals Ltd., director of Teva Pharmaceutical Industries Ltd., and president and CEO of Teva Pharmaceuticals Europe BV. Tel-Aviv University awarded Chaim Hurvitz a degree in undergraduate studies.
Opinion: Another SPAC avoided. Maybe it’s worth looking at now at $1 per share, but I’m passing as they will have to raise some very expensive money soon to keep afloat.
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Insiders sell the stock for many reasons, but they generally buy for just one – to make money. You’ve always heard the best information is inside information. Everyone who has any experience at all in the stock market pays close attention to what insiders are doing. After all, who knows a business better than the people running it? Officers, directors, and 10% owners are required to inform the public through a Form 4 Filing any transaction, buy, sell, exercise, or any other within 48 hours of doing so. This info is available for free from the SEC’s Web site, Edgar, although we subscribe to SECForm4 as they provide a way to manage and make sense of the vast realms of data. I’ve tried a lot of vendors. SECForm4 is one of the smaller ones but I like supporting Frank. He is not arrogant. He’s helpful and has great prices. He also trades on his own data so I like people that eat what they kill.
The bar is different from selling because the natural state of management is to be seller. This is because most companies provide significant amounts of management compensation packages as stock and options. Therefore, with selling, we analyze unusual patterns, such as insiders selling 25 percent or more of their holdings or multiple insiders selling near 52-week lows. Another red flag is large planned sale programs that start without warning. Unfortunately, the public information disclosure requirements about these programs, referred to as Rule 10b5-1 is horrendously poor. Also planned sales that just pop up out of nowhere are basically sales and are seeking cover under the Sarbanes Oxley corporate welfare clause. I also generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and perhaps not the smart money we are trying to read the tea leaves on.
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.
No one tracks and understands insider behavior better than us. We’ve been doing it religiously since 2001 when I quit being an insider myself and devoted myself full-time to managing my personal investments. Needless to say, past good fortune is no guarantee of future success. We may own positions, long or short, in any of these names and are under no obligation to disclose that. We welcome your comments on our analysis.
This blog is solely for educational purposes and the author’s own amusement. Investing with The Insiders Fund is for qualified investors and by Prospectus only. Nothing herein should be construed otherwise. THE INSIDERS FUND invests in companies at or near prices that management has been willing to invest significant amounts of their own money in. If you would like to hear more about how you can get involved with the Insiders Fund, please schedule some time on my calendar.
Prosperous Trading,
Harvey Sax
