Curious how well insiders are doing with their buys? Click on this link or image above to scroll the significant buys of the last year.

The war is on. Biden made that clear Friday after the close. What he made equally clear is that our allies are completely confused about what we would do beyond righteous indignation. We’ve got a lot of RIGHTEOUS INDIGNATION to go around. In fact, I might have been dreaming but I swear I saw diplomats from the EU and the German federation of states wearing placards shoulder to shoulder that said Righteous Indignation- Nah  that was a dream
If there was ever any purpose to sanctions, it was something to be used as a deterrent. Not something that was brought to bear after the damage was done.  Here let me blow up your vital roads, infrastructure and destroy thousands of lives, and if that is not bad enough we’re going to make it immeasurably worse by punishing your oligarchs and penalizing German and Russian sweetheart oil and gas deals.  It’s laughable.  Ukraine’s President may be a comedian but he’s at least a believable politician.   Show me the big bad sanctions, Zelenskyy said. What good are they after the fact? I could not agree with him more.  No wonder the West wanted Zelensky back in his box before he upset the narrative.  You can bet Putin hear him and perhaps President Xi.  No, send the comedian home before the truth got leaked.  Here we are again, 80 years later and the European continent is inhabited by the same people that tolerated NAZI appeasement except for this time around the Germans are the appeasers, not the aggressors.
It’s pretty obvious- there are no sanctions to speak of. Just look at the price of oil and gas.  It’s in a perfect uptrend. Steady but not runaway prices. The Russian stock market should be up not down. Putin is playing us for fools and he’s right.  Apparently, we’re not using Swift, the financial connect that the West controls as a sanction.  Russian President Medvedev said disconnecting Russia from the financial system would be an “act of war”.  This material is too good.  Why am I the only one doing something with this?  It seems like encircling another country with all the weapons of war and practicing annihilating the population is also an act of war or is that just the theatre of the absurd?
Nord Pipeline II is not even turned on so that’s not much of a sanction.  So what are the sanctions? Let’s see them. Go ahead and use them. That’s the point- there really aren’t any.  While the U.S has been focused on playing good cop from 6000 miles away in a darkened room in flight control in Florida, Russia has been modernizing weapons of truly death-defying dimensions, and we look like grandpa with his fly undone.  Maybe this will be a wake-up call? Wasn’t it Trump that spoke about Nato not carrying its weight and the Germans should not be supporting Nordstream 2?  I think the message from this week is loud and clear. The Germans are once again the problem. They want Pax American and don’t want to pay for it.
It’s time to start buying stocks and bombs- insiders are starting to buy stocks. Poland’s defense minister announced Wednesday that the country will buy 250 M1A2 Abrams SEPv3 tanks from the U.S. to counter Russian military capabilities “So we are ordering the most modern tanks.  Europe just got a wake-up call and the price tag will be enormous. Insiders might not have started buying yet but I think you should start.  Ironically not a single mention on the popular business periodicals over the weekend about bulking up on defense stocks. That’s bullish.

* Assets and Average Volume as of 2022-02-17 15:19 EST

Symbol
ETF Name
Sector
Total Assets ($MM)
YTD
Avg Volume
Previous Closing Price
1-Day Change
Overall Rating
ITA iShares U.S. Aerospace & Defense ETF Industrials $2,594.14 2.73% 244,206 $105.59 -1.29%
XAR SPDR S&P Aerospace & Defense ETF Industrials $1,081.40 -2.09% 62,233 $114.04 -1.77%
ARKX ARK Space Exploration & Innovation ETF Industrials $391.81 -12.36% 289,580 $16.52 -2.48%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares Industrials $280.15 6.63% 1,609,017 $19.95 -3.90%
FITE SPDR S&P Kensho Future Security ETF Industrials $25.87 -8.92% 3,386 $47.78 -2.11%
Click Here to Join to ETF Database Pro for 14 Days Free, Export This Data & So Much More
You could be more cautious like me and stay with tried and proven stuff- NOC cruise missiles, LMT patriot missiles and stealth jets, RTX Raytheon electronics warfare, General Dynamics tanks, and then there is just a lot more steel without a defense premium like CLF, Cleveland Cliffs.  Maybe even PLTR will start to work and the bromance between tech and the defense department will get rekindled.
The more I think about this, the more I like it.  It’s usually last year’s worst-performing sectors that turn into this year’s best-performing ones- it’s just so uncanny and difficult to visualize how that happens, but invariably it does. It may not line up to the calendar day but it gets close enough.  Everyone thought Trump would be great for oil and gas- but his drill baby drill mantra released an explosion of drilling and new exploration.  Biden came in and the dialogue all went green, lowering the carbon footprint with skyrocketing crude oil and natural gas prices as Putin gave the world a history lesson about cutting off the heat in the dead of the winter.  Crazy how stupid we humans are but lets at least use this to our advantage and try to make some money off our stupidity. It’s really not a contradiction. I’ve been doing it for years.
When the priorities of The Biden agenda are all focused on getting to the carbon-neutral and domestic agenda what do you think happened to the Ishare US Aerospace and Defense ETF when he got elected?  Actually not much.  The SPY and ITA did about the same to date but now they are diverging in a big way. mostly by the market coming down.  This could be just the beginning.

😣 Now it’s just stock talk-

Finviz Chart

Name: Neupert Peter M
Position: Director
Transaction Date: 2022-02-16 Shares Bought: 3,500 Average Price Paid: $263.66 Cost: $922,815
Company: Laboratory Corp of America Holdings (LH)
Laboratory Corp of America Holdings (LabCorp) is a provider of clinical laboratory services and end-to-end drug development support. It focuses on the development and commercialization of a range of diagnostic technologies and testing services. The company offers clinical diagnostics laboratory services such as core testing, genomic and esoteric testing. Its services include general and specialty laboratory testing, bone marrow and human leukocyte antigen (HLA) testing, clinical trials services, drug testing services, deoxyribonucleic acid (DNA) identification services, forensic identity services, insurance health plan services, paternity testing services, patient services, personalized medicine, and hospital services. It also offers drug development services through Covance. It offers services to managed care organizations, physicians, hospitals, government agencies, and biotechnology, and pharmaceutical companies through a network of primary laboratories and patient service centers. The company has operations across the US, Belgium, China, Singapore, the UK, and other countries. LabCorp is headquartered in Burlington, North Carolina, the US. Laboratory Corporation of America Holdings is a life sciences company that provides clinical laboratory and end-to-end drug development services. The Company’s business segments include Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). Through its Dx and DD segments, the Company provides diagnostic, drug development, and technology-enabled solutions. The Company also supports clinical trial activity in approximately 100 countries through its industry central laboratory, preclinical, and clinical development businesses. Dx segment operates through a network of patient service centers, branches, rapid response laboratories, primary laboratories, and specialty laboratories. DD segment, which operates on a global scale. The Company serves a range of customers, including doctors, hospitals, pharmaceutical companies, researchers, governmental agencies, physicians, and other healthcare providers. It also helps in delivering non-clinical testing services.

Peter M. Neupert has served as a director of the Company since January 1, 2013. Mr. Neupert was an Operating Partner at Health Evolution Partners, a health-only, middle-market private equity firm, from January 2012 until June 2015. Prior to that, Mr. Neupert served as Corporate Vice President of the Microsoft Health Solutions Group from its formation in 2005 to January 2012. Mr. Neupert served on the President’s Information Technology Advisory Committee (PITAC), co-chairing the Health Information Technology Subcommittee and helping to drive the “Revolutionizing Health Care Through Information Technology” report, published in June 2004. Mr. Neupert served as the founding President and Chief Executive Officer of drugstore.com from 1998 to 2001 and as Chairman of the board of directors through September 2004. Mr. Neupert has served as a director of Adaptive Biotechnologies Corporation since December 2013 and currently serves as the Lead Independent Director.

Opinion:  One of Warren Buffet’s most famous lines is that he wants to invest in a business that any idiot can run because eventually, one will. When broken down even further, Quest and LabCorp cumulatively account for about 54% of the estimated $27 billion commercial markets. Similarly sized, Quest and LabCorp are by far the largest independent labs in the U.S. and operate with enormous scale advantages versus their much smaller peers. from Morningstar Oct 16, 2018 https://ratingagency.morningstar.com › PublicDocDi…

How can you not make money in a monopoly business? 3500 shares of $LH and nearly  $1million is nothing to sneeze out. Neupert sees the catalyst. No analysts seem to identify it. Wouldn’t it be appropriate if we could all just Twitter bomb him and say Hey, Peter we noticed you bought 3550 shares of LH at $263.66 and this is your first open market purchase in history?  Mind telling us what you see? I don’t One problem with that is I don’t think Peter has a Twitter account, at least not one I can access but I’m pretty sure he is on Facebook at Adaptive Biotechnologies. Companies come on the air and tout their stock all the time. It would be nice that when they actually have directors and officers that buy material amounts they could give more play to motives. I’m just left to speculate.

Lab Corp has been a truly disappointing stock even more so since the narrative fantasy of Elizabeth Holmes Theranos being completely and utterly debunked there is no one stick wonder.  Apparently, it’s harder to operate a monopoly business than they must have thought at Wells Fargo. And at all places, Wells Fargo should have some idea of the difficulty seeing as how they bank one out of every 5 Americans.  Someone does have to go in and turn the lights on, get packages moving from A to B and back to C. $LH was lowered to $320 from $340 at Well Fargo and then day’s letter getting his competitive spirits enflamed, Citi analyst Patrick Donnelly raised the firm’s price target on LabCorp to $350 from $340 and keeps a Buy rating on the shares post the Q4 results.  This is a business that is s borderline monopoly and if they can anywhere close to the $350 per share target that’s a 34% return and I’ll be happy with that. No it’s not as good as Elizabeth Holmes magic stick business. If they keep postponing the sentencing date, maybe they will find a special cell roommate for  Elizabeth Holmes-like Cathie Woods? Isn’t it kind of fraud to keep getting on TV making outlandish statements about gigantic TAM’s she is completely clueless or for that matter anyone is?

But wait! I’ve got it. The latest headline December 24th is the cliffhanger “Labcorp announced that it has entered into a definitive agreement to acquire Personal Genome Diagnostics, PGDx. “Labcorp’s leadership and scale in diagnostic testing and drug development, coupled with PGDx’s innovative technology and suite of capabilities, will accelerate access to personalized treatments for cancer patients globally,” said Adam Schechter, chairman and CEO of Labcorp. “PGDx’s comprehensive portfolio of next-generation sequencing products will meaningfully add to our breadth of capabilities, in line with our strategic priority to lead in oncology. PGDx’s technology is well positioned in an important segment with strong growth prospects. We look forward to welcoming PGDx’s talented team and working together to bring world-class diagnostics, technology and treatments within reach for all.” Under the terms of the agreement, Labcorp will pay $450M in cash at closing and up to an additional $125M on achieving future performance milestones. The transaction is subject to customary closing conditions and regulatory approvals. The transaction is expected to close in the first half of 2022.

Finviz Chart

Name: Lawrence W. Kellner
Position: Director
Transaction Date: 2022-02-14 Shares Bought: 5,000 Average Price Paid: $208.91 Cost: $1,044,550
Company: Boeing Co (BA)
Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners, defense, space, and security systems, and service provider of aftermarket support. As America’s biggest manufacturing exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing has a long tradition of aerospace leadership and innovation. The company continues to expand its product line and services to meet emerging customer needs. Its broad range of capabilities includes creating new, more efficient members of its commercial airplane family; designing, building, and integrating military platforms and defense systems; creating advanced technology solutions; and arranging innovative financing and service options for customers. With corporate offices in Chicago, Boeing employs more than 140,000 people across the United States and in more than 65 countries. This represents one of the most diverse, talented, and innovative workforces anywhere. Our enterprise also leverages the talents of hundreds of thousands more skilled people working for Boeing suppliers worldwide.

Mr. Kellner brings to the Board extensive airline industry experience developed during his 14 years of service in key leadership positions at Continental Airlines, including Chairman, Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. Mr. Kellner possesses a deep understanding of strategic planning, customer requirements, and operational management in the airline industry. As CEO of Continental Airlines, Mr. Kellner led a highly regulated global airline committed to safety through strong training programs, as well as coordination and integration among pilots, civil aviation authorities, and other internal and external stakeholders. He also has deep experience in meeting the requirements of numerous safety and regulatory compliance regimes around the world. In addition, Mr. Kellner has detailed finance and accounting knowledge gained principally from his experience as Chief Financial Officer at Continental Airlines and American Savings Bank.

Opinion: People forget that Boeing world’s largest aerospace company and leading manufacturer of commercial jetliners, defense, space, and security systems, and service provider of aftermarket support. As America’s biggest manufacturing exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. My guess is this large buy-in stock has got an eye open in the battlefield in Ukraine. Should it get back to the $208 price in the next few days we will take a stab at the defense side. Unless I’m more myopic than usual, defense spending is going to see bipartisan support. Bombs, Bombs, Bombs.

 

 

Finviz Chart

Name: Gates William H
Position: CEO Chairman 10% Owner
Transaction Date: 2022-02-18 Shares Bought: 362,747 Average Price Paid: $117.17 Cost: $42,501,968
Company: Republic Services (RSG)
Republic Services is an industry leader in U.S. recycling and non-hazardous solid waste disposal. Through its subsidiaries, Republic’s collection companies, transfer stations, recycling centers, and landfills focus on providing reliable environmental services and solutions for 14 million commercial, industrial, municipal and residential customers. They want their customers to feel at ease because of the reliability of the services, uplifted by the environmental impact they can make partnering with Republic, and delighted by the simple solutions and array of services we provide. They’ll handle it from here™, Republic’s tagline, the customers know that they can count on to provide an effortless experience; backs the promise that they will be on time, never miss a pickup and leave the area clean; supports promise to deliver superior products and services to meet the customers’ needs, and remind them about the environmental commitment. They believe in protecting the planet and applying common-sense solutions to customers’ waste and recycling challenges. They have significantly invested in materials recovery and other recycling operations that sort, process, and sell recyclable paper, aluminum, glass, and other materials. They also continue to expand the planet-friendly fleet of trucks, with over 10% of our fleet powered by compressed natural gas (CNG). Our Company takes pride in the commitment to environmental stewardship and sustainable practices; renewable energy; community involvement; the safety of the employees; and innovation in all aspects of our business operations. They employ approximately 36,000 full-time employees and work to create and maintain an environment that attracts, develops, and retains people who assure our success with customers, differentiate from our competitors. We want to be an employer of choice for top talent.

Microsoft’s chief visionary moving further away from day-to-day corporate work. For the first time did not offer a strategy outlook at this year’s financial analyst meeting. Instead, prefers to dive into innovative projects, foster collaboration among Microsoft’s many divisions. Microsoft aims to be omnipotent, selling software for PCs, servers, cell phones, television set-top boxes, gaming consoles, the Web. Fifteen product launches slated for the next year and a half, including a new version of Windows, called Vista, and gaming console Xbox 360. At the ripe (tech sector) age of 30, Gates’ company impressively beats rivals in profit margins, market capitalization, and R&D budget, but its sales growth is slowing to a (recently) single-digit percentage pace. Like elder statesman of computing, IBM has been investing heavily in its own stock ($8 billion worth so far). Diversifies methodically, selling 20 million shares every quarter, reinvesting through Cascade Investment. Big stakes in Canadian National Railway, Republic Services, Berkshire Hathaway.

Opinion: Did you know that Bill Gates loves trash? He is one of the largest owners of waste recycling businesses in the world?  He can have it too. Have you ever been around one of these facilities? They don’t smell good.  But maybe he has an even grimmer dystopian future than soylent green in mind?  On my Netflix bing list.

 

Finviz Chart

Name: Treff Douglas J
Position: Director
Transaction Date: 2022-02-17 Shares Bought: 8,100 Average Price Paid: $91.44 Cost: $740,662
Company: Crocs Inc (CROX).

Name: Smach Thomas J
Position: Director
Transaction Date: 2022-02-17 Shares Bought: 12,356 Average Price Paid: $86.35 Cost: $1,066,889
Company: Crocs Inc (CROX)
Crocs, Inc., is a Colorado maker of unique clogs that became extremely popular in the early 2000s with both men and women. The inexpensive shoes rely on a proprietary closed-cell resin material called Croslite to produce a lightweight, slip-resistant, odor-resistant, non-marking sole. The material also softens with body heat, thus molding the shoe to the foot of the wearer and providing a comfortable fit. Originally intended for use on boats and in other outdoor activities like hiking, fishing, and gardening, Crocs has also found a market with working people who spend a lot of time in their feet, such as health care and restaurant workers. Moreover, Crocs, generally considered an ugly shoe, has attracted the attention of celebrities, thereby making them fashionable. The shoe features a removable back strap available in 20 colors. In some circles, essentially younger girls, these straps are traded among wearers to provide a different look. Because of their broad appeal, Crocs are available through numerous distribution channels: traditional footwear retailers, sporting goods and outdoor retailers, department stores, uniform suppliers, specialty food retailers, gift shops, health and beauty stores, and catalogs. The company also sells the shoes on its Web site and in kiosks located in places with heavy foot traffic. In addition to the United States, Crocs are sold in more than 40 countries. Beyond its signature clogs, Crocs has taken steps to extend its brand to include clothing, hats, sunglasses, gardening kneepads, and other products. The company maintains manufacturing facilities in Canada, Italy, Mexico, and China. Crocs is a public company listed on the NASDAQ.

Douglas J. Treff is on the board of Crocs, Inc. He previously was Chief Financial Officer & Senior Vice President at Deluxe Corp., Chief Financial Officer of PreVu, Inc. and Chief Financial Officer & Vice President for Wilsons The Leather Experts, Inc. (a subsidiary of PreVu, Inc.), Chief Administrative Officer & Executive VP at Payless Holdings LLC and Chief Administrative Officer & Executive VP at Payless ShoeSource, Inc. (a subsidiary of Payless Holdings LLC), Chief Administrative Officer & Executive VP at Sears Canada, Inc. and Chief Financial Officer, Director & Senior VP at World Vision, Inc.

Opinion: Did I blink and miss something?  Weren’t these shoes hot last summer?

 

Finviz Chart

Name: Moskovitz Dustin A
Position: CEO Chairman 10% Owner
Transaction Date: 2022-02-16 Shares Bought: 1,250,000 Average Price Paid: $70.42 Cost: $88,029,744
Company: Asana Inc. (ASAN)
Asana is a web and mobile application designed to help teams organize, track, and manage their work. Forrester, Inc. reports that “Asana simplifies team-based work management. Asana helps teams orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 100,000 paying customers and millions of free organizations across 190 countries. Global customers such as Amazon, Japan Airlines, Sky, and Under Armour rely on Asana to manage everything from company objectives to digital transformation to product launches and marketing campaigns. Asana, Inc. offers a work management platform. The Company’s platform enables teams to orchestrate work, from daily tasks to cross-functional strategic initiatives. With its solution, Asana enables individuals to manage and prioritize across each of the projects. Its solution enables individuals to collaborate with teammates and have visibility into each team member’s responsibilities and progress. The Asana solution aids the team leads to manage work across a portfolio of projects or processes. The Company enables executives to communicate company-wide goals, monitor status, and oversee work across projects to gain real-time insights into which initiatives are on track or at risk. Asana is powered by its multidimensional data model called the work graph. The work graph captures and associates work units, the people responsible for executing those units of work, the processes in which work gets done, information about that work, and the relationships across and within the data.

Dustin Moskovitz is the co-founder and CEO of Asana. As Asana’s CEO, Dustin is dedicated to creating a product that helps the world’s teams collaborate effortlessly, in addition to leading the company’s award-winning culture. Prior to founding Asana, Dustin co-founded Facebook and served as the company’s first Chief Technology Officer and VP of Engineering.

Opinion: We just canceled our two-seat order in Asana. They are besides themselves. I really didn’t see the need for it when I just made Google the executor of my estate. I’m letting them take care of everything including my living will. I’m donating my brain to their autonomous driving unit because they outbid Elon Musk on my auto insurance rates in the here and now – NOT JUST the STUPID Metaverse.  Who’s going to drive in the metaverse anyway, really?

 

Name: Hermance Frank S
Position: Director
Transaction Date: 2022-02-16 Shares Bought: 65,000 Average Price Paid: $38.15 Cost: $2,479,432
Company: UGI Corp (UG)
UGI Corp (UGI) is a holding company that provides energy products and services. The company stores, transports, distributes and markets energy products and related services through its subsidiaries. It distributes propane and butane in the domestic and international markets and provides natural gas and electricity service through regulated local distribution utilities. The company also markets energy and commodities and manages midstream energy and electricity generation assets. UGI also offers heating, ventilation, air conditioning, refrigeration, and electrical contracting services. It has operations in the US, Austria, France, Czech Republic, Slovakia, Hungary, Poland, Romania, and Switzerland. UGI is headquartered in King of Prussia, Pennsylvania, the US. UGI Corporation is a holding company. The Company, through its subsidiaries and affiliates, distributes, stores, transports, and markets energy products and related services. The Company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. The AmeriGas Propane segment consists of the propane distribution business of AmeriGas Partners, L.P (AmeriGas Partners). It also sells, installs, and services propane appliances, including heating systems. The UGI International segment consists of liquefied petroleum gas (LPG) distribution businesses conducted by its subsidiaries and affiliates. This segment also conducts energy marketing business. The Midstream & Marketing segment consists of energy-related businesses conducted by its subsidiary, UGI Energy Services, LLC. The UGI utility segment consists of the regulated natural gas and electric distribution businesses of its subsidiary, UGI Utilities, Inc.

Mr. Hermance serves as the Company’s Chairman of the Board (since January 2020). He is the retired Chairman (2001 to 2017) and Chief Executive Officer (1999 to 2016) of AMETEK, Inc. (a global manufacturer of electronic instruments and electromechanical devices). He previously served as AMETEK’s President and Chief Operating Officer (1996 to 1999). Mr. Hermance serves as Director Emeritus of the Greater Philadelphia Alliance for Capital and Technologies, as Vice Chairman of the World Affairs Council of Philadelphia, and as an advisory board member at American Securities LLP (a private equity firm). He previously served as a member of the Board of Trustees of the Rochester Institute of Technology (until November 2016) and as a Director of AmeriGas Propane, Inc., a subsidiary of the Company, until its merger into UGI Corporation in August 2019. In connection with the suspension of voluntary reporting obligations under the Exchange Act, Mr. Hermance also served as a Director of UGI Utilities,

Opinion: Shareholders lost a lot of money here and I’m just glad I’m not one of them. I have a hard time understanding how higher natural gas prices in Europe impact LPG propane here. On February 2nd the company reporteded Q1 revenue of $2.67B, a consensus $2.23B. CEO Roger Perreault stated: “This quarter, we navigated the challenging macro-economic environment that provided rising cost inflation and a tight labor market. With this backdrop, UGI reported lower first-quarter 2022 adjusted results, which were impacted by unfavorable weather in the U.S. as the country experienced the warmest December on record. AmeriGas reported lower volumes due to weather, the impact of customer service challenges from the prior year after establishing the new operating business model, and the effect of higher commodity prices on customer usage. We also saw significantly higher and unprecedented volatility in commodity prices in Europe that had a negative impact on average LPG unit and energy marketing margins at UGI International. Our natural gas businesses delivered strong results, despite the warmer weather, due to incremental earnings from Mountaineer and higher margin from renewable energy marketing activities.” None of this makes any sense to me

Finviz Chart

Name: Kamin Peter
Position: Director
Transaction Date: 2022-02-15 Shares Bought: 110,000 Average Price Paid: $35.76 Cost: $3,933,700
Company: IAA Inc (IAA)
IAA, Inc. is a digital marketplace connecting vehicle buyers and sellers. The Company operates through two segments: the United States and International. Its platform facilitates the marketing and sale of total loss, damaged and low-value vehicles for a spectrum of sellers. It serves a buyer base and a spectrum of sellers, including insurance companies, dealerships, fleet leases, rental car companies, and charitable organizations. Its solutions provide buyers with the vehicles they need to, among other things, fulfill their vehicle rebuild requirements, replacement part inventory, or scrap demand. It provides buyers with multiple bidding/buying digital channels, vehicle merchandising, evaluation services, and online bidding tools, for the overall purchasing experience. It has approximately 200 facilities throughout the United States, Canada, and the United Kingdom. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,000 employees and more than 200 facilities throughout the U.S., Canada, and the United Kingdom. IAA serves a global buyer base – located throughout over 170 countries – and a full spectrum of sellers, including insurers, dealerships, fleet lease, and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time, and delivering the highest economic returns.

Founder of Peak Investment LP, ValueAct Capital Management LP, ValueAct Capital Management LLC, and 3K LP, Peter H. Kamin is an entrepreneur and businessperson who has been at the helm of 5 different companies and currently occupies the position of Chairman for Calloway’s Nursery, Inc., Chairman at Tile Shop Holdings, Inc. and Chairman of Rand Worldwide, Inc. Peter H. Kamin is also Director & Managing Partner at 3K LP and on the board of 8 other companies.

In the past, Mr. Kamin was Chairman of Rockford Corp., Chairman of Seitel, Inc., Partner at ValueAct Capital Management LP, Partner at ValueAct Capital Management LLC, Partner at Morningside N.A. Ltd. and Assistant Portfolio Manager at Fidelity Management & Research Co. LLC. Peter H. Kamin received an undergraduate degree from Tufts University and an MBA from Harvard Business School.

Opinion: This is a large buy. Truist analyst says IAA is now trading at 11-times expected 2022-2023 EBITDA – its lowest valuation level ever. I think there will be a lot of stocks coming down in value that I might have a better chance of understanding and adding value so I’m standing off on this one.

Name: Redstone Shari
Position: Director
Transaction Date: 2022-02-18 Shares Bought: 104,650 Average Price Paid: $28.61 Cost: $2,994,132
Company: Paramount Global (PARAA)
Paramount Global Solutions is an innovative IT company that provides solutions & resources to a wide range of clients. They are a global IT Consulting Service with well-rounded expertise across all information technologies. Paramount Global Solutions provide custom solutions to complex problems with a hands-on approach to tackle any job at hand. If you are looking to join or partner with leaders in technology, choose Paramount Global Solutions. They have the to-do attitude which allows them to be the best and excel far beyond the norm. They are not leaders just by their name but they are leaders by the results we provide. Their services are dynamic, scalable, resilient, and responsive enabling rapid growth and high value for our clients. The major service lines that focus on are Application Development, Cloud, Mobile, Business Analytics, System Integration, Digital Transformation, IT Assets management solutions, and services. They are at Paramount Global Solutions to gauge our success by our customer’s success. They regard it as a privilege to serve the customers are committed to doing whatever it takes to ensure they are 100 percent satisfied.

Shari Ellin Redstone is an American media executive with a background in numerous aspects of the entertainment industry and related ventures. She currently serves as the non-executive chairwoman of Paramount Global (formerly known as ViacomCBS) and president of National Amusements; she formerly served as the vice-chairman of CBS Corporation and Viacom. Through National Amusements, Redstone and her family are majority owners of CBS, Comedy Central, BET, Showtime Networks, Nickelodeon, MTV, and the film studio Paramount Pictures.

Opinion: We should have known better. Network TV is dead. It doesn’t matter what Sherri Redstone buys or gives away, it will never be enough.  And the idiot you have running the business, Bakish? What is wrong with you. Why haven’t you taken whatever price the lumbering giants will give you and move on? You lost. The Government picked winners and losers when they forced local carry networks and made you give CBS away for ad support. It’s not a level playing ground.  Just take this for an example.

Remember the VCR wars?  You want to VCR some shows. Google arrived and dropped a nuclear bomb and no one did anything.  VCR record everything all the time. No charge. How do you compete with that?  Google YouTube TV owned the Superbowl.  Now I’m just wondering if anyone will pay anything for your convoluted vision. Sell the pieces you can. It’s over.

 

Finviz Chart

Name: Beattie John Gregory
Position: COO
Transaction Date: 2022-02-16 Shares Bought: 11,400 Average Price Paid: $22.71 Cost: $258,871
Company: Inotiv Inc (NOTV)
Inotiv, Inc. is a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models, and related products and services. The Company’s products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical R&D projects, all while working together to build a healthier and safer world. In choosing a laboratory partner for discovery and development, expect more: more attention, more insight, and a superlative experience. You’ve worked hard to get this far, and you deserve a provider seamlessly aligned to your needs and goals.Through scientific leadership and ongoing investments, Inotiv delivers a comprehensive range of nonclinical and analytical services that will exceed your expectations. Benefit from our long and impeccable regulatory history, world-class team of scientists, and track record of providing attentive, decisive service. Answering the right questions on time and with high-quality data is the key to achieving your objectives. At Inotiv, that is the main focus: to provide with both the broad scope and right-size solutions essential to your success.

C-Level executive with global experience and an extensive record growing top and bottom lines in a variety of different businesses. Executive responsibilities in global leadership, general management, commercial delivery, and operations, including strategic planning, organizational restructuring, investor relations, and mentoring management teams. Strong reputation and demonstrated experience building high-performance management teams and delivering excellent growth strategies, developing exceptional client partnerships, and implementing enterprise-wide systems and process improvements that deliver improved operational performance.

Opinion: This is not a big deal, no more than a mandatory director buy

 

Finviz Chart

Name: BOSTON BYRON L
Position: CEO
Transaction Date: 2021-12-13 Shares Bought: 30,000 Average Price Paid: $19.89 Cost: $596,850
Company: Dynex Capital Inc (DX)
Dynex is a financial services company committed to ethical stewardship of stakeholders’ capital, expert risk management, disciplined capital allocation, and social responsibility. They generate dividend income and long-term total returns through the financing of real estate assets, and by doing so, support the growth and revitalization of communities in the United States. Its goal is to manage our capital to provide shareholders with attractive and consistent risk-adjusted returns over the long term. Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS has a guarantee of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS has no such guarantee of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. Dynex Capital, Inc. was founded in 1987 and is headquartered in Glen Allen, Virginia.

Michael R. Hughes became a Director of the Company in November 2010 and in May 2017 became Chairman of the Board. Mr. Hughes joined Switchmate Home, LLC as Chief Financial Officer in March 2017, after previously serving as Portfolio Manager at Ascend Capital Management since 2012. He also serves on the Board of Trustees and is a past President of the Bentley School in Oakland, California. Mr. Hughes was a Partner and Portfolio Manager of Osterweis Capital Management from 2005 to 2008. From 1989 to 2005, Mr. Hughes was the First Vice President of Merrill Lynch Financial Institutions Research. He began his career as an equity analyst at Dean Witter Reynolds in 1986. Mr. Hughes holds an A.B. from the University of California at Berkeley in Geophysics. He was awarded the Chartered Financial Analyst (CFA) designation in 1991.

Opinion: Not my kind of business.

Finviz Chart

Name: Shelton John Christopher
Position: Director
Transaction Date: 2022-02-15 Shares Bought: 5,000 Average Price Paid: $13.58 Cost: $67,900
Company: Fluence Energy Inc. (FLNC)

Name: Dubuc Manuel Perez
Position: CEO
Transaction Date: 2022-02-15 Shares Bought: 20,000 Average Price Paid: $13.28 Cost: $265,500
Company: Fluence Energy Inc. (FLNC)

Name: Nebreda Julian
Position: Director
Transaction Date: 2022-02-15 Shares Bought: 8,000 Average Price Paid: $13.00 Cost: $104,000
Company: Fluence Energy Inc. (FLNC)
Fluence Energy, Inc. provides energy storage products and services and digital applications worldwide for renewables and storage applications. The company sells energy storage products with integrated hardware, software, digital intelligence, and engineering and delivery services to support the deployment of its storage products, operational and maintenance, energy storage-as-a-service, and digital applications and solutions. It serves utilities, developers, and commercial and industrial customers. The company was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, LLC operates as a subsidiary of Siemens Aktiengesellschaft and The AES Corporation. Fluence is enabling the global clean energy transition with market-leading energy storage products and services and digital applications for renewables and storage. Fluence brings proven energy storage products and services and digital applications for renewables and storage to support the modernization of their energy networks. They are the partner that can deliver globally with the most experienced and knowledgeable team in the world. Fluence is the result of two industry powerhouses and pioneers in energy storage joining together to form a new company dedicated to innovating modern electric infrastructure.

John Christopher Shelton is a member of our Board of Directors and had served as a member of the board of directors of Fluence Energy, LLC since January 2018. Mr. Shelton currently serves as Senior Vice President and Chief Product Officer of AES and President of AES Next, the strategic venture arm of AES. He began his tenure at AES in 1994, previously serving as President of AES Energy Storage, Vice President of New Energy Solutions, and as Chief Technology Innovation Officer. Mr. Shelton currently serves on the board of directors of Uplight, a privately held software-as-service customer platform for utilities. Mr. Shelton served as Chairman of the Board of the Electricity Storage Association from 2011 to 2013. Mr. Shelton is listed as an inventor on 16 patents, 8 of which are grid energy storage related.

Mr. Dubuc served on the Fluence Board of Directors since 2018 and was selected by the Board to lead the company’s next phase of growth. Fluence continues to invest in its technology platform and digital intelligence capabilities designed to meet the expanding energy storage needs of customers, with a goal of building another 3 gigawatts (GW) of projects around the world over the next two years. His close working relationship with Mr. Coughlin and with board members from both AES and Siemens ensures a smooth transition that builds on the market leadership position held by Fluence. Coughlin became CEO of Fluence in January 2018 after serving as one of the lead architects of the joint venture that became Fluence. Under his leadership, Fluence grew from an initial 485 MW of projects to the current 1.7 GW awarded or delivered in 21 countries, including several of the largest energy storage projects in the world.

Julian Jose Nebreda Marquez is a businessperson who has been at the head of 7 different companies. Currently, he holds the position of Chairman of AES Brasil Energia SA and Chief Executive Officer, Director & Director-IR at Brasiliana Participações SA. He is also President-South America Strategic Business Unit at The AES Corp. and on the board of 10 other companies. He previously held the position of Council Member at Inter-American Development Bank, Chairman of AES Tiete Energia SA, and Vice President-Central America & Caribbean at C.A. La Electricidad de Caracas. Julian Jose Nebreda Marquez received a graduate degree from Universidad Católica Andrés Bello and a graduate degree from Georgetown University Law Center.

Opinion:I’ve seen some inaugural 1st quarters as a public company but Fluence was about as bad as it gets. This was all the more disappointing as in order to achieve a net zero carbon world, batteries are essential and a spinoff from a major utility company like AES and Siemmes renewables would be a good spot to give the world some positive news. Unfortunately you’re just finding doublespeak.

There was a lot of growth, new business orders and ventures and more business losses. For all the progress in the following paragraphs, the company split off at $35 per share and we’re back to $12.  This is not the way to grow enthusiasm for a net zero carbon world. Maybe it gets better from here. From a stockholder’s perspective, it’s hard to imagine it worse.

Strategic and Operational Highlights

First Fiscal Quarter Ended December 31, 2021

  • Significant growth across the organization
    • Awarded a 200 MW transmission and distribution enhancement contract following a successful 1 MW pilot with Litgrid AB.
    • Awarded a 320 MW Fluence IQ contract in Australia for Fluence I
    • to optimize the portfolio of renewable assets for a major telecommunication company.
    • Added 139 full-time employees during the quarter, including two new executives for software controls and software engineering.
  • Executed supply chain improvements focused on targeting long term value creation.
    • Increased supply chain and manufacturing organization by 57% since September 30, 2021.
    • Selected contract manufacturers for new locations in North America and Europe.

January and February 2022

  • Signed a 1.1GW Fluence IQ contract with AES for the optimization of solar and energy storage portfolio in the Western United States.
  • Signed a term sheet with ReNew Power to enter into a 50:50 joint venture in India.
  • Entered into a partnership with Pexapark to provide innovative energy sales advisory services and roll out digital applications to the Fluence IQ ecosystem. This is the first partnership between Fluence and a third-party developer to further strengthen and amplify the capabilities of the Fluence IQ ecosystem.
  • Entered into a strategic agreement to collaborate with QuantumScape, a leader in solid-state battery technology, setting the stage for a possible large-scale supply agreement in the future.

Financial Highlights

  • First quarter financial results showcase strong order intake and delayed revenue recognition.
    • Total revenues for the first fiscal quarter were $175 million, up 50% from the same quarter last year.
    • Net loss for the first fiscal quarter was $(111) million, compared to $(12) million for the same quarter last year.
    • Adjusted EBITDA* for the first fiscal quarter was $(43) million, compared to $(11) million for the same quarter last year.
  • Reaffirm our fiscal year 2022 total revenue guidance of $1.1 to $1.3 billion.
  • Total backlog of $1.9 billion as of December 31, 2021; comprised of approximately $1.6 billion from energy storage products, and approximately $0.3 billion from recurring revenues (energy storage services and Fluence IQ). This is compared to our September 30, 2021 Total backlog of $1.7 billion.

*Non-GAAP Financial Metric. See the section below titled “Non-GAAP Financial Measures” for details, as well as a reconciliation to the most directly comparable financials measure stated in accordance with GAAP.

Executive Summary

Commenting on the quarter, Manuel Perez Dubuc, the Company’s President and Chief Executive Officer, said “I’m pleased to report that we exceeded expectations for new customer orders of our energy storage products during the first fiscal quarter despite short-term headwinds. We take comfort in our $1.9 billion backlog that continues to grow and provide additional visibility to future cash flow. Operationally, we now have 4.2 GWs of energy storage products deployed or contracted worldwide and have strong visibility to future cash flows through our backlog. More importantly, we continue to see strong growth in our digital business providing us with confirmation of our strategy and execution.

I am most excited about the progress we’ve made in our digital business, first with our Pexapark partnership and more recently with our 1.1 GW Fluence IQ contract with AES. This contract is the largest digital award ever and enables us to meet our 2022 annual recurring revenue target for Fluence IQ, seven months ahead of schedule.

We are still seeing some headwinds associated with supply chain disruptions from COVID-19 as well as project cost overruns from our first Gen 6 product installations and commissioning. We’ve taken swift action to mitigate these challenges that provide us the confidence to reaffirm our fiscal year 2022 guidance. This guidance assumes that ongoing energy storage supply chain disruptions and temporary closures of customer constructions sites will be resolved during 2022.

We also positioned ourselves for continued long-term success through several key initiatives executed in January 2022. First, we signed a term sheet with ReNew Power, India’s leading renewable company, to form a 50:50 joint venture in India. By partnering with ReNew, a well-respected, established, and pure renewables player in India, Fluence has the first mover advantage to quickly capture Indian market share. This independent joint venture will license and sell our products and services to anyone in India, including ReNew. We are pleased this announcement is accompanied by the announcement of the joint venture’s first contract, which will consist of a 150 MWh order.

Second, we expanded our digital ecosystem by adding Pexapark and its four applications to our Fluence IQ platform. This is a significant milestone that corroborates our vision for Fluence IQ and provides us with additional upside through revenue sharing.

And finally, we signed a strategic agreement with QuantumScape, to collaborate and test QuantumScape’s solid-state technology in Fluence’s proprietary products. We are excited to partner with them as we strive to increase our ability to develop higher density and lower cost products, while also increasing total safety features.

Looking forward, we continue to see record levels of demand and we believe our recent strategic actions bolster our ability to capitalize on these opportunities and deliver value to our shareholders as we transform the way we power our world for a more sustainable future.”

Commenting on the company’s financial results, Dennis Fehr, the Company’s Chief Financial Officer, said “During the first fiscal quarter, we made progress towards completing several key orders. Like the prior quarter, the recent COVID-19 surge resulted in product-related revenues being delayed, thereby shifting the timing of revenue recognition. However, in spite of the compounding effects of COVID-19, based on our corrective measures, we expect to catch up on these orders in the short-term. As we focus on delivering against our backlog, we are also continuing to experience strong demand for our products and services, providing us solid visibility for future growth.”

Fiscal Year 2022 Total Revenue Guidance and Annual Seasonality

The Company reaffirmed its fiscal year 2022 total revenue guidance of $1.1 billion to $1.3 billion. This guidance assumes that ongoing energy storage product shipping delays and temporary closures of customer constructions sites will be resolved during 2022.

Fluence’s business has historically been subject to seasonality due to the timing of many projects coming online around the northern hemisphere summer peak season. As a result, revenue recognition as a percentage of annual revenue has historically been approximately 15% during Q1, approximately 15% during Q2, approximately 40% during Q3, and approximately 30% during Q4 of the Company’s fiscal year ending September 30.

Fiscal year ending September 30 FY Q1
(Oct – Dec)
FY Q2
(Jan – Mar)
FY Q3
(Apr – Jun)
FY Q4
(July – Sept)
Approximate Percentage of Annual Revenue and Percentage of Annual Contracted Megawatts 15% 15% 40% 30%

 

Calendar year ending December 31 CY Q1
(Jan – Mar)
CY Q2
(Apr – Jun)
CY Q3
(Jul – Sep)
CY Q4
(Oct – Dec)
Approximate Percentage of Annual Revenue and Percentage of Annual Contracted Megawatts 15% 40% 30% 15%

Share Count

The shares of the Company’s common stock are presented below:

in millions Common Shares
Class B-1 common stock held by AES Grid Stability, LLC 58.587
Class B-1 common stock held by Siemens Industry, Inc. 58.587
Class A common stock held by Qatar Holding LLC 18.493
Class A common stock issued in IPO 35.650
Total Class A and Class B-1 common stock outstanding (1) 171.317

(1) Before incentive compensation award plans

 

 

Finviz Chart

Name: Harry Sloan
Position: Director
Transaction Date: 2022-02-15 Shares Bought: $12.98 Average Price Paid: $12.98 Cost: $649,105
Company: Lions Gate Entertainment Corp. (LGF-B)
Lions Gate Entertainment Corporation, doing business as Lionsgate, is an American-Canadian entertainment company. It was formed by Frank Giustra on July 10, 1997, in Vancouver, British Columbia, Canada, and is currently headquartered in Santa Monica, California, United States. In addition to its flagship Lionsgate Films division, the company contains other divisions such as Lionsgate Television and Lionsgate Interactive. It owns a variety of subsidiaries such as Summit Entertainment, Debmar-Mercury, and Starz Inc. The company bought several small production facilities and distributors, starting with Montreal-based Cinépix Film Properties Vancouver, British Columbia. Completing its first year of operation, Lionsgate had revenue of $42.2 million with a loss of $397,000. The company share price dropped to a low of $1.40. it limited the corporation’s ability to make acquisitions via stock swaps. Lionsgate instead made its subsequent acquisition of Termite Art Productions, a reality-based television production company, for $2.75 million by issuing three convertible promissory notes. Giustra had the shareholders vote to move the company’s public listing from the Toronto Stock Exchange to the American Stock Exchange, along with a two-for-one stock consolidation to qualify for greater exposure that might boost share value.

Harry Evans Sloan is a media investor, entrepreneur, studio executive, and Vice Chairman of the Board. Mr. Sloan served on the board of directors of Videocon from May 2016 to April 2018. Throughout his impressive entrepreneurial career, Mr. Sloan was responsible for the creation or sponsorship of three successful public companies in the media and entertainment industries: Lions Gate Entertainment Corp., an independent motion picture and television production company, New World Entertainment Ltd., an independent motion picture and television production company, and SBS Broadcasting, S.A., a European broadcasting group, operating commercial television, premium pay channels, radio stations and related print businesses in Western and Central and Eastern Europe, which he founded in 1990.

Opinion: If no one is going to buy Paramount or Viacom maybe no one is going to buy Lionsgate either.

 

Finviz Chart

Name: Peters Gregory K
Position: Director
Transaction Date: 2022-02-15 Shares Bought: 49,663 Average Price Paid: $10.07 Cost: $500,106
Company: 2U Inc. (TWOU)

Name: Paucek Christopher J
Position: CEO
Transaction Date: 2022-02-14 Shares Bought: 26,040 Average Price Paid: $9.64 Cost: $251,026
Company: 2U Inc. (TWOU)

Name: MAEDER PAUL A
Position: Director
Transaction Date: 2022-02-14 Shares Bought: 110,000 Average Price Paid: $9.43 Cost: $1,037,300
Company: 2U Inc. (TWOU)
2U is a cloud-based Software-as-a-Service platform providing schools with the comprehensive operating infrastructure they need to attract, enroll, educate, support, and graduate students globally. Blending live face-to-face classes, dynamic course content, and real-world learning experiences, 2U’s No Back Row approach ensures that every student can experience a high-quality university education for the most successful outcome. The platform partners with universities to offer online degree programs. As the parent company of edX, a leading global online learning platform, 2U provides over 40 million learners around the globe with access to world-class education in partnership with more than 230 colleges, universities, and corporations. Its people and technology are powering more than 3,500 digital education offerings—from free courses to full degrees. The Platform, a fusion of cloud-based software-as-a-service technology and technology-enabled services, provides schools with the comprehensive operating infrastructure they need to attract, enroll, educate, support, and graduate students globally. Blending live face-to-face classes, dynamic course content, and real-world learning experiences, 2U’s No Back Row® approach ensures that every qualified student can experience the highest quality university education for the most successful outcome. 2U supplies universities with the tools, expertise, capital, and global recruiting needed to compete in a space currently dominated by unexceptional programs, while developing state-of-the-art technology platforms that enhance traditional offline curricula to create transformative instruction using the best educational and Web 2.0 technologies. The platform provides the vital logistical components of any online program, including comprehensive student support services from enrollment through graduation and beyond as well as practical learning experiences within distant communities around the country. 2U partners with colleges and universities to deliver the world’s best online degree programs so students everywhere can reach their full potential. It was launched in 2008 and is based in Hanover, M.D.

Greg Peters assumed the role of chief product officer of Netflix in July 2017 and leads the product team, which designs, builds, and optimizes the Netflix experience. Previously, Peters was an international development officer for Netflix, responsible for the global partnerships with consumer electronics companies, Internet service providers, and multi-channel video programming distributors that enable Netflix to deliver movies and TV shows across a full range of devices and platforms. Prior to joining Netflix in 2008, Peters was senior vice president of consumer electronics products for Macrovision Solutions Corp. (later renamed to Rovi Corporation) and previously held positions at digital entertainment software provider Mediabolic Inc.; Red Hat Network, the provider of Linux and Open Source technology; and online vendor Wine.com. Peters holds a degree in physics and astronomy from Yale University.

Christopher “Chip” Paucek is the co-founder and CEO of 2U, Inc. (Nasdaq: TWOU), described by Forbes Magazine as the “nation’s leading provider of software for universities” delivering digital higher education at scale. Paucek’s innovative work at 2U has earned him many accolades, including the Ernst & Young Entrepreneur of the Year Award in 2012, the Goldman Sachs 100 Most Intriguing Entrepreneurs Award in 2013, and multiple Highest Rated CEO awards from Glassdoor. In 2017, Paucek was named among America’s best chief executives by Institutional Investor magazine, ranking third among mid-cap technology, media, and telecom companies. He is a leading voice and speaker on entrepreneurship and the global education and technology landscape. Paucek also sits on 2U’s Board of Directors. Paucek has been involved in education ventures since the early 1990s.

Paul Maeder is focused on building the next great online higher education, and enterprise software companies. As Founder and General Partner at Highland Capital Partners, Maeder has over 37 years of experience in venture capital and has been a director of many public and private companies. He currently serves on the boards of 2U, Exagrid, and Princeton University. Maeder was the Chair of the National Venture Capital Association during the creation and passage of the JOBS Act and served on the SEC Advisory Committee on Small and Emerging Companies. Maeder has also served as the Board Chair of BB&N School, and as Board Chair of the Massachusetts Chapter of the Nature Conservancy. He has been recognized by the prestigious Forbes Midas List as one of the top venture capitalists in the industry and was a recipient of the Mass Technology Leadership Council Commonwealth Award. He is an avid sailor and pilot. Maeder holds a BSE degree from Princeton University, an MS from Stanford University, and a Harvard MBA.

Opinion: I’d take a hard look at buying stock in this company but the CEO and his team have to go. They don’t know how to run a business. It doesn’t get any simpler than that.

 


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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 with 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.

“Typos Modus Operandi” if you can’t figure out what I meant
you shouldn’t be reading my emails anyway. mmmm, in other words, the typos are free.                                                                                                                                                                                                                                                                                            n

We publish a subscription newsletter called The Insiders Report.  We offer a free 30-day trial so you have nothing to lose by trying it out. Be sure to carefully read the TERMS OF SERVICE.

Another source for insider buying and selling and much more is FinViz Elite. FinViz stands for financial visualization and they do an amazing job of providing reams of data and the tools to help you get to the bottom of it, the information that helps me make informed decisions and probable outcomes. I’ve been using their site for years and it only gets better over time.

This is as close to “insider information” that an ordinary investor is likely to see- and it’s entirely legal. 

BEWARE– Following insiders can be hazardous to your financial health. It’s just one piece of the investor’s due diligence. The Insiders Fund blog informs you of the purchases that count.  As a rule, we only look at material amounts of money as anything less could just be window dressing.

The bar is different from selling because the natural state of management is to be sellers. This is because most companies provide significant amounts of management compensation packages as stock and options. Therefore, with selling, we analyze for 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 about, 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 comment, 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

The Insiders Fund was the 4th best long-short equity fund in the world in 2019