Pacific Ethanol Inc PEIX Director Gilbert bought 72,800 shares at $3.55. Ethanol has been a perennial bad investment but that seems to be changing. Two things are shaking up the dynamics; the coronavirus has created unprecedented demand for alcohol based sanitizer and the prospects of a Democratic environmentally focused administration will increase the use of bio-fuels. Even Archer Daniels ADM Director bought 11,100 shares at $44.75.
PIEX is the leading producer and marketer of low-carbon renewable fuels in the United States. It operates nine strategically-located production facilities throughout California, Oregon, Idaho, Illinois, and Nebraska, making it the sixth largest producer of ethanol in the United States based on annualized volumes. PIEX markets all the ethanol, specialty alcohols and co-products produced at its plants as well as ethanol produced by third parties. On an annualized basis, it markets nearly 1.0 billion gallons of ethanol and over 3.0 million tons of ethanol co-products on a dry matter basis.
CNS Pharmaceuticals Inc. CNSP CFO Downs bought 142,000 shares at $2.04. CFO buys are one of our favorites as these officers are all all about the numbers.
CNSP is a preclinical stage pharmaceutical company focused on the development of anti-cancer drug candidates for the treatment of brain and central nervous system tumors. Its lead drug candidate, Berubicin, if approved by the FDA, may be a significant discovery in the treatment of glioblastoma. Glioblastoma are highly cancerous tumors that arise from astrocytes, which are star-shaped cells making up the supportive tissue of the brain. After recently entering into a Reata Agreement and obtaining the HPI License, CNSP believes it has obtained all rights and intellectual property necessary to develop Berubicin.
FLOTEK INDUSTRIES INC FTK Director David Nierenberg bought 690,147 at $2.00. We’re struggling to find the impetus behind this buy. I guess it can’t get worse. You decide. Flotek generated second quarter 2020 consolidated revenue of $8.9 million for three months ended June 30, 2020 compared to $34.7 million in the second quarter 2019 and declined 54.3% from $19.4 million on a sequential basis. Consolidated revenue continues to be impacted by a volatile macro-environment for U.S. onshore drilling and completion activity, further impacted by global economic events, as well as concerns related to COVID-19 pressuring productivity and customer demand.
FTK is a global, technology-driven company that develops and supplies chemistry and services to the oil and gas industries. Flotek operates and/or distributes its products in seven domestic and international markets. The Company, which now operates in the Energy Chemistry Technology sector, offers products and services, some of which are patented, and experience in fluid systems applications that are responsive to industry demands in both domestic and international markets.
CALIX INC CALX Director LIstwin has steadily been buying up shares in this cloud company. Last week he bought more than $1 Million dollars at $19.95 to $20.40. CALX is a leading global provider of cloud and software platforms, systems and services required to realize the unified access network and the smart, connected premises of tomorrow. Calix platforms empower its customers to build new business models, rapidly deploy new services and make the promise of the smart, connected home and business a reality. Innovative CSPs rely on Calix platforms to help them master and monetize the complex infrastructure between their subscribers and the cloud. Its platforms and services help customers build next generation networks by embracing a DevOps operating model, optimizing the subscriber experience by leveraging big data analytics and turning the increasing complexity of the subscriber edge into new revenue streams.
AXIS CAPITAL HOLDINGS LTD AXS Director Davis has bought $170 million worth of this reinsurance company from $45.57 to $45.59. You can see the impact his buying alone is having on the price, steadily driving it up. Is it too late to ride AXS?
AXS is a Bermuda-based hybrid specialty insurance and global reinsurance company that provides its clients and distribution partners with a broad range of specialty lines insurance and treaty reinsurance solutions on a worldwide basis, through operating subsidiaries and branch networks based in Bermuda, the United States, Europe, Singapore, Canada and the Middle East. Its underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re.
Camping World Holdings Inc. CWH Marcus Lemonis bought another $500k of Camping World at an average price of $29.82. We all know what is happening with outdoor recreation as people flock to the outdoors in numbers never seen before. The question is of course, is this and enduring trend. Once there is a vaccine, will people put up their RVs and go back to the old ways or will this lead to an enduring change and foster a generation of RV enthusiasts?
LIONS GATE ENTERTAINMENT CORP LGF.B studios have been shuttered along with most of Hollywood. Will the be pent up demand for new movies once movie theaters reopen.Director Gordon Crawford’s purchase of 50,000 shares at $8.47 creates some speculation that the oft rumored sale of Lions Gate might be on again.
LGF.A / LGF.B is a global content leader whose films, television series, digital products and linear and over-the-top platforms reach next generation audiences around the world. Lionsgate’s film and television properties support location-based entertainment venues and other branded attractions, as well as a video game business. Lionsgate’s content initiatives are backed by a nearly 17,000-title film and television library and delivered through a global sales and licensing infrastructure
Post Holdings Inc POST President Westhphal bought 2000 shares at $84.87. The giant cereal maker has under performed the market by 11.3% over the last thirteen weeks. It has done even worse than Kellogg, it’s most direct competitor. After years of steady decline, sales of cereal have rebounded dramatically during the coronavirus pandemic as consumers sheltering in place who once skipped breakfast in the face of long commutes now have time – and no other options – to eat at home.POST is a consumer packaged goods holding company, operating in the center-of-the-store, refrigerated, foodservice, food ingredient and convenient nutrition categories. The company also participates in the private brand food category, including through investments with affiliates of Thomas H. Lee Partners, L.P. (collectively, “THL”) in 8th Avenue Food & Provisions, Inc. (“8th Avenue”)
GOLUB CAPITAL BDC Inc. GBDC Mezzanine lender Golub has been steadily rising since its March pandemic plunge. It now yields 8.81%. CEO Golub bought 87,200 at $12.72. GBDC is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. The Company makes investments primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans) and other senior secured loans of middle-market companies that are, in most cases, sponsored by private equity firms. GC Advisors structures its one stop loans as senior secured loans, and obtains security interests in the assets of the portfolio company that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of the portfolio company.
LA JOLLA PHARMACEUTICAL CO LJPC Director Ramsey bought 47,000 at $3.99. Last week Kevin Tang, 10% owner bought $1.6 million worth of beleaguered biotech. LJPC is dedicated to the development and commercialization of innovative therapies that improve outcomes in patients suffering from life-threatening diseases. In December 2017, GIAPREZATM (angiotensin II) was approved by the FDA as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. GIAPREZA U.S. net sales were $23.1 million in 2019 compared to $10.1 million in 2018, an increase of 129%.
Kennedy-Wilson Holdings Inc. KW CEO McMorrow bought $1M of this distressed real estate play at $14.07. This is truly a contrarian buy. Although 75,000 shares is a big buy this only increased his holdings by 2.06%.
Real estate has been hit hard by the pandemic and no part of it hit harder than shopping centers and malls. Many retail tenants are expected to not survive. Shopping center magnate, Francis Saul bought 20,250 shares of SAUL CENTERS Inc BFS at $28.23.
B. Riley Financial Inc. CEO and Company namesake Bryant Riley continues to buy up shares in this investment brokerage company on the way up. This is very bullish and RILY is doing better than all of its peers and even the market by 22%.
Another investment bank, GREENHILL & CO INC GHL, had some significant buying with its Chairman Scott Bok buying 65,961 shares at $11.21.
Utility stocks have been left out of this remarkable rally. It’s not logical either, as interest rates have made historic lows and the economy struggles, this group historically would have outperformed. Here are two utility companies with insiders buying:
SEMPRA ENERGY SRE insider Walker bought 2000 shares at $122.32. The fear that government may provide wide spread and near permanent forbearance of utility bills is probably overplayed. Earlier this month three other directors bought shares in this San Diego based utility.
THE INSIDERS FUND invests in companies at or near prices that management has been willing to invest significant amounts of their own money in. After all, who knows a company better than the people running it. This common sense approach to investing has outperformed the market by 400% since 2001, the year I quit being an insider myself and started investing with this proven strategy.
If you would like to hear more about how you can get involved with the Insiders Fund, please email, call, or schedule some time on my calendar. The Fund admits new investors and accepts additional investments on the 1st of each month.
Harvey Warren Sax
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Hedge Fund Insomniac Guy
hsax@alphawealhfunds.com
wk (435) 658.1934
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Hedge Funds
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The Insiders Fund focuses exclusively on what insiders are buying and selling. Portfolio manager Harvey Sax has deployed this strategy since 2001 with 4x return of the market during that time. According to the portfolio manager, the market is not cheap by any means, fundamental or historic, NONE THE LESS, there are always situations that the crowd has missed. These are most often highlighted by large insider buys.
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[…] don’t expect the repeat performance when it nearly doubled last year on an insider buy. We blogged about it last August and made good money on it. too. Now that the stock price has round-tripped […]