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

The S&P 500 scorched the short-sellers, racking up the best performing since November 2020, up an astounding 6.19% for the week. So is this the all-clear sign?  We wrote last week a Temporary Truce in the Alpha War Zone that the insider buying sell ratio in the NASDAQ stocks looked like it had reached a short-term buy signal.  I hope you were able to take advantage of that. There will probably be a little carry through from such a big move but this is expected in bear markets. The counter-trend rallies are violent.  One thing I want to bring out in bear markets is that it sets the hook for hauling in the biggest fish. You see opportunities in individual names that are incredible bargains. Rare, incredible, and painful bargains like Carvana down from $350 to $30 or a Wayfair down from $345 to $46. There are many stocks exhibiting those kinds of price collapses. This is scary but insiders are making bets here. It’s worth considering.

When you go back a few months from now and analyze these posts, you’ll get a first-hand view of how good their crystal balls were. For now, let’s dig deep into last week’s hit parade.

 

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Name: Fletcher Jeremy Adam
Position: CFO
Transaction Date: 2022-05-20 Shares Bought: 835 Average Price Paid: $600.00 Cost: $501,000.00
Company: O’Reilly Automotive Inc (ORLY)
Name: Groves Jeffrey Lynn
Position: VP
Transaction Date: 2022-05-23 Shares Bought: 175 Average Price Paid: $572.77 Cost: $100,235.00
Company: O’Reilly Automotive Inc (ORLY)
In the United States, O’Reilly Automotive, Inc. owns and maintains retail stores. It serves both professional installers and do-it-yourself clients in the distribution and retailing of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis parts, and engine parts are among the company’s hard parts; maintenance items include oil, antifreeze products, fluids, filters, lighting products, engine additives, and appearance products; and accessories include floor mats, seat covers, and truck accessories. Its outlets sell auto body paint and related products, as well as automobile tools and professional servicing equipment. Used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool programme; drum and rotor resurfacing; custom hydraulic hoses; professional paint shop mixing and related materials; and machine shops are among the additional services and programs available at the company’s locations.

Since 2005, Jeremy Fletcher, Senior Vice President of Finance and Controller, has been a member of the O’Reilly Team. All of the Company’s accounting, SEC reporting, tax, investor relations, financial planning and analysis, and credit are among Jeremy’s key responsibilities. Jeremy started his O’Reilly career as a Financial Reporting and Budgeting Manager and worked his way up to Director of Finance, Vice President of Finance, and Controller. Mr. Fletcher worked as a Certified Public Accountant for a public accounting firm and in financial reporting and planning for a Fortune 1000 company before joining O’Reilly. Jeremy has held the position of Senior Vice President of Finance and Controller since 2017.

Since 1988, Jeff Shaw, Co-President, has been a member of the O’Reilly Team. Store Operations, Sales, Distribution Operations, Real Estate, Jobber Sales, and Acquisitions are Jeff’s key responsibilities. Jeff began his O’Reilly career as a Parts Specialist and worked his way up to Vice President of the Southern Division, Vice President of Sales and Operations, Senior Vice President of Sales and Operations, and Executive Vice President of Store Operations and Sales, and Chief Operating Officer and Co-President.

Opinion: There is something bizarre and unprecedented going on in the used car market. If you bought a used car as I did two years ago, you can probably trade it in for more money than you paid for it. That’s never happened before in my lifetime.  The semiconductor shortage, supply chain snafus, and other matters have all collided to decrease the number of new cars manufactured driving up the price and scarcity of used automobiles.

The average age of vehicles on U.S. roads has been rising for decades as cars grow ever more durable — and expensive. The average age of a car on U.S. roads rose to 12.1 years in 2021, according to IHS Markit. The average age had been 11.9 years in 2020. In 2002, the average age was 9.6 years. In short, Americans are going to drive their cars longer rather than replace them with more expensive models and will require new parts to keep them going. This is a favorable backdrop for parts suppliers like Oreilly and used car inventories like Avis Budget which is undergoing significant insider buying as we write this.

On April 27th, ORLY reported Q1EPS of $7.17 versus consensus $7.48. They reported Q1 revenue $3.3B, consensus $3.32B. Comparable store sales increased 4.8% in Q1. Greg Johnson, O’Reilly’s president and CEO, commented, “We are pleased to report another profitable quarter, highlighted by a 4.8% increase in comparable store sales, which is on top of the record 24.8% comparable store sales growth we delivered in the first quarter last year, resulting in an incredible comparable store sales two-year stacked increase of 29.6%. Historically, our first quarter can be volatile, as we see weather impacts from winter conditions early in the quarter and the timing of the onset of spring at the end. This year was no exception, and we saw choppiness in our business that coincided with inclement weather at the beginning of our quarter and the slow start to spring, along with other macroeconomic pressures. However, we continue to be pleased with the core, underlying strength of our business and our solid first quarter comparable store sales results, which, on top of last year’s performance, are clear indicators of our Team’s ability to grow our business and take market share. During the quarter, we launched our professional pricing initiative, which created the expected pressure on gross profit, and our Teams continue to effectively manage the ongoing inflationary cost pressures. I would like to thank each of our over 84,000 Team Members in the U.S. and Mexico for their relentless focus on providing unsurpassed levels of customer service, and their ongoing efforts continue to drive profitable growth.”

According to Post on the Fly, JPMorgan analyst Christopher Horvers lowered the firm’s price target on O’Reilly Automotive to $750 from $800 and keeps an Overweight rating on the shares following the Q1 results. The analyst views the pullback on the “rare miss” as overdone. He is more optimistic on quarter-to-date trends than buyside expectations, “suggesting the big cut that shorts are angling for on 2Q is likely to be at least better than feared.” The weather was clearly a factor in Q1 and should improve in the coming weeks while the dislocation provides O’Reilly an opportunity to aggressively buy the stock, Horvers tells investors in a research note.

I’m sorry I didn’t jump quicker on this one. It’s increased by an astounding $50 dollars in just a week, 13%. Try selling the $560 puts for a solid trade.


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Name: Small Robert J
Position: Director
Transaction Date: 2022-05-19 Shares Bought: 19,398 Average Price Paid: $544.09 Cost: $10,554,249.00
Company: TransDigm Group INC. (TDG)
In the United States and globally, TransDigm Group Incorporated designs manufactures, and supplies airplane components. Mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems are all available through the company’s Power & Control segment. Off-road vehicle and subsystem vendors, child restraint system suppliers, satellite and space system suppliers and heavy equipment manufacturers are all served by this market.

Mr. Robert J. Small is a Managing Director at Stockbridge Partners LLC and a Managing Director at Berkshire Partners LLC. He is also an Independent Director at TransDigm Group, Inc. TransDigm Group, Inc., Active Aero Group, Inc., AmSafe Global Holdings, Inc., Cypress Holding Co., DB Cargo (UK) Ltd., Electro-Motive Diesel International Corp., and Gordon Brothers Group LLC all have him on their boards of directors. Mr. Small has previously worked with Party City Holdings, Inc., Amscan Holdings, Inc., Amscan, Inc., Bain & Co., Inc., and Goldman Sachs Bank AG as a Chairman, a Principal, and a Principal. Factory Card & Party Outlet Corp., Hexcel Corp., Combined Jewish Philanthropies of Greater Boston, Inc., and KiwiRail Investments Ltd. were all on his board of directors. He graduated from Yale University with a bachelor’s degree in economics and a master’s degree in business administration from Harvard Business School.

Opinion: The company reported 2nd Qtr earnings of $3.89 versus a consensus of $3.69 and suspended guidance due to the uncertainity of their core commercial aerospace markets. Small likely took this as a long-term buying opportunity buying shares since February 2021.

 

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Name: Hees Bernardo
Position: Chairman
Transaction Date: 2022-05-24 Shares Bought: 28,334 Average Price Paid: $172.78 Cost: $4,895,558.00
Company: Avis Budget Group Inc (CAR)
Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers. It operates the Avis brand, which provides premium commercial and leisure travelers with vehicle rental and other mobility solutions; and the Budget Truck brand, which provides local and one-way truck and cargo van rentals through a network of approximately 465 dealer-operated and 385 company-operated locations throughout the continental United States. Budget, Payless, Apex, Maggiore, MoriniRent, FranceCars, Amicoblue, Turiscar, and ACL Hire are some of the other car rental brands operated by the corporation. It also provides supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products; fuel service options, roadside assistance, electronic toll collection, curbside delivery, tablet rentals, satellite radio access, portable navigation units, and child safety seat rentals; and automobile towing equipment.

Mr. Hees has been a director since February 2020. Previously, Mr. Hees served as Chief Executive Officer of The Kraft Heinz Company from 2015 to June 2019. Since 2013, he has been the Chief Executive Officer of H.J. Heinz Holding Corporation. Mr. Hees was the Chief Executive Officer of Burger King Worldwide Holdings, Inc., a global fast food restaurant company, from 2010 until 2013. He was the CEO of América Latina Logstica, a Brazilian logistics company, from 2005 to 2010. From 2010 through 2019, Mr. Hees was a partner with 3G Capital. Mr. Hees is also a director of Bunge Limited, which is required by the Exchange Act to file reports.

Opinion: On May 2nd CAR reported a blowout quarter- Q1 revenue $2.43B, consensus $2.11B.The company said, “Net income was $527 million and our Adjusted EBITDA was $810 million, our best first quarter Adjusted EBITDA in our history. Utilization for the quarter was 67.4% and in-line with first quarter 2021, showing our fleet is well positioned to meet seasonal peak demand.” Utilization for the quarter was 67.4%. “Despite the impact of Omicron on the first half of the quarter, our team was able to quickly pivot to manage the significantly increasing demand during the back half of the quarter,” said Joe Ferraro, Avis Budget CEO. “We focused on diligent fleet management and continued costs. I want to thank all the employees for their continued tireless efforts in helping us achieve this milestone.”

Chairman Hees responded by buying nearly $10 million of stock between $172.78 and $189.9 during the previous two weeks. This one looks like it could run quite a bit higher. Bear in mind, that Hees was a seller of 143,389 shares between $271.78 and $275.06 back in  November of 2021 so he is playing with the house’s money. Net net he owns more shares than ever though.  This guy is a good trader.

 

 

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N

In the United States, Canada, Asia, Europe, the Middle East, and Latin America, the Middleby Corporation designs, produces, markets, distributes and supports a variety of food services, food processing, and residential kitchen equipment. Conveyors, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills; stainless steel fabrication, custom millwork, professional mixers, stainless steel fabrication, custom millwork, and professional refrigerated.

The Audit Committee includes Mr. Ziyad. Since 2017, he has been a member of the Middleby Board of Directors. Since 1983, Mr. Ziyad has served as the Chief Operating Officer of Ziyad Brothers Importing. Ziyad Brothers Importing, founded in 1966, is a significant distributor and global marketer of a diversified array of food goods, representing international clients including Nestle, Kraft, and Bel. Mr. Ziyad’s significant expertise in global food marketing, branding, and financial management is invaluable in Board discussions on ethnic food distribution, cross-border commerce, global ethnic food trends, and brand management and marketing.

Opinion: Not following this. Yes, the stock is down and two insiders are buying but I see limited upside here. On May 10th,  Tim FitzGerald, CEO of the Middleby Corporation. “The underlying fundamentals of our business remain strong. In addition, customers seeking innovations around connectivity, IoT, and automated solutions are helping to drive demand across our three industry-leading segments,” Mr. FitzGerald continues. As our record backlog continues to grow, we remain heavily focused on meeting customer demand and attacking operational challenges by proactively managing our supply chain to limit disruptions. We continue to make investments in inventory, people, fabrication equipment, and facilities, in a concerted effort to improve efficiencies, capacities, and our pipeline of developing business opportunities.”

 

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Name: Breyer James
Position: Director
Transaction Date: 2022-05-25 Shares Bought: 9,326 Average Price Paid: $107.21 Cost: $999,885.00
Company: Blackstone Inc. (BX)
Blackstone Inc. is a financial services company. Investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets, and secondary funds are part of its asset management business. Real estate, private equity, hedge fund solutions, and credit and insurance are the company’s four segments. Blackstone Real Estate Partners (BREP) invests in a number of real estate operating companies as well as logistics, office, rental housing, hospitality, and retail properties. The corporate private equity division, which includes Blackstone Capital Partners (BCP), Blackstone Energy Partners (BEP), Capital Partners Asia, and Blackstone Core Equity Partners, is part of the Private Equity segment (BCEP). Blackstone Alternative Asset Management is part of the Hedge Fund Solutions division, whereas Blackstone Credit is part of the Credit & Insurance segment.

A Member of the board of directors is James W. Breyer. On July 14, 2016, Mr. Breyer was elected to the board of directors. Mr. Breyer is the founder and CEO of Breyer Capital, a leading venture capital firm headquartered in Menlo Park, California. Mr. Breyer was an early investment in approximately 40 technology businesses that have gone public or merged successfully. From 1990 to 2016, he was a Partner at Accel Partners, and from 1995 to 2011, he was the Managing Partner. Mr. Breyer has a long history of investing in China and collaborating with Chinese businesspeople. Our board of directors includes James W. Breyer. Mr. Breyer was appointed to the board of directors on July 14, 2016, and took office on that date. Breyer Capital, a renowned venture capital firm situated in Menlo Park, California, is founded and led by Mr. Breyer. Mr. Breyer was an early investor in more than 40 successful public offerings or mergers in the technology sector. From 1990 through 2016, he worked for Accel Partners as a Partner and Managing Partner.

Opinion: Blackstone may be the premier private equity firm. With their tentacles ranging all over all industries and all geographies, this is just a fundamental bet on the operational prowess of these operators. Bear in mind that while Director Breyer was buying 9.236 shares Director Baratta was unloading days later 9,326 shares. I wonder if they were talking to one another and taking the opposite sides of the trade. Barrata owns 1,213,188 shars versus Breyer’s 34.522.

 

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Name: Zarley James R
Position: Director
Transaction Date: 2022-05-20 Shares Bought: 7,069 Average Price Paid: $70.56 Cost: $498,789.00
Company: Texas Roadhouse Inc. (TXRH)

Name: Warfield Curtis
Position: Director
Transaction Date: 2022-05-23 Shares Bought: 3,362 Average Price Paid: $71.03 Cost: $238,803.00
Company: Texas Roadhouse Inc. (TXRH)
Texas Roadhouse, Inc. runs casual dining restaurants in the United States and overseas through its subsidiaries. The Texas Roadhouse, Bubba’s 33, and Jaggers brands are used to run and franchise restaurants. It had 566 domestic restaurants and 101 franchise restaurants as of December 28, 2021.Texas Roadhouse, Inc. is a full-service, casual dining restaurant company that specializes in hand-cut, seasoned, and aged steaks that are grilled to order over open gas-fired grills. It owns the Texas Roadhouse and Aspen Creek restaurant brands. A variety of ribs, fish, shellfish, chicken, pork chops, pulled pork, and veggie plates, as well as hamburgers, salads, and sandwiches, are available to customers. Other licensing and franchise restaurants can use its supervision and administrative services. W. Kent Taylor created the firm on February 17, 1993, and it is based in Louisville, Kentucky.

Mr. Zarley is the Chairman of Conversant, Inc. (previously ValueClick, Inc.), a single-source distributor of media, technology, and services across key interactive marketing channels. Mr. Zarley held various positions with ValueClick, Inc. from 1999 until his retirement in March 2013, including Executive Chairman and Chief Executive Officer. Mr. Zarley was the Chief Executive Officer of Quantech Investments, an information services firm, from April 1987 until December 1996, before joining ValueClick, Inc. Mr. Zarley served as Chairman and Chief Executive Officer of Best Internet from December 1996 until May 1998, when the firm merged with Hiway Technologies, a Web hosting company. Mr. Zarley was the Chief Operating Officer of Hiway Technologies from May 1998 to January 1999, until the company merged with Internet service provider Verio, Inc.

Mr. Warfield is the President and Chief Executive Officer of Windham Advisors LLC, a management and strategic consultancy firm that specializes in providing creative business solutions to firms in the healthcare, BPO (business process outsourcing), and insurance industries. From 2017 to 2019, he was a member of Anthem, Inc.’s (NYSE: ANTM) senior leadership team, one of the nation’s major health insurers. From 1997 through 2016, he worked as a senior executive with HCA, the country’s largest healthcare provider, in a number of capacities. He began his career as the Chief Financial Officer of the Columbia Healthcare Network and spent most of his time as the CEO of NPAS, a healthcare services firm. Since August 2018, Mr. Warfield has been a director.

Opinion: People are still eating out in this middle American steak house chain should prove exceptionally resilient. Dir Zarley chomped down 7069 shares at $70.56 Inflation is no doubt having an impact as well as rising wages. Recently deceased Kent Taylor founded the company and apparently left it in good hands. TXRH has rebounded a sharp 13% from the insider buys. Its not an exceptional bargain in this space so I don’t expect much more price action for now.

 

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Name: Replogle John B
Position: Director
Transaction Date: 2022-05-23 Shares Bought: 7,463 Average Price Paid: $67.65 Cost: $504,862.00
Company: Wolfspeed Inc (WOLF)
Wolfspeed, Inc. manufactures silicon carbide and gallium nitride (GaN) materials, as well as power and radio frequency (RF) devices, using wide bandgap semiconductor materials and silicon. Silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers are among the company’s silicon carbide and GaN materials. Customers can use silicon carbide materials to make products for RF, power, and other applications. Customers and distributors can use the company’s power devices, which include silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), power modules, and gate driver boards, in applications like electric vehicles with charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and others.

Since January 2014, Mr. Replogle has served on the Board of Directors. He has been a Founding Partner of One Better Ventures, LLC, a venture capital business focused on consumer brands with a good effect, since October 2017. He was the Chief Executive Officer and President of Seventh Generation, Inc., a manufacturer and marketer of sustainable household goods, from March 2011 until October 2017. Mr. Replogle was President and Chief Executive Officer of Burt’s Bees, Inc. from 2006 to 2011, and General Manager of Unilever’s Skin Care business from 2003 to 2006.He previously spent seven years with Diageo, Plc, where he held positions such as President of Guinness Bass Import Company and Managing Director of Guinness Great Britain. He began his professional career with the Boston Consulting Group. Mr. Replogle is now a director of AEA-Bridges Impact Corp. (NYSE: IMPX), and from 2010 to 2013, he was a director of Sealy Corporation, a publicly listed mattress maker, until it was sold to Tempur-Pedic International Inc.

Opinion:$WOLF, Once named Cree Technologies and the inventor of the LED bulb, somehow this company squandered that opportunity. Director Reploge bought 7463 shares at $67.65. It will take more than a name change to reclaim its competitive place in the annals of semiconductor technology.  BM) analyst says, ” Given its market-leading position in wide bandgap semiconductors such as SiC and GaN, the company stands to benefit from markets ranging from EVs to 5G, but the stock looks “reasonably valued”, Srivastava tells investors in a research note.  Maybe there is another hat trip to this story, one where they can fulfill the promise of the first-mover.  First, they have to exhibit quarter-over-quarter growth, which they did in Q3. Then they have to make money doing it which they haven’t yet done.

 

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Name: Ehrsam Frederick Ernest III
Position: Director
Transaction Date: 2022-05-24 Shares Bought: 30,030 Average Price Paid: $60.60 Cost: $1,819,830
Company: Coinbase Global Inc. (COIN)
In the United States and globally, Coinbase Global, Inc. offers financial infrastructure and technology for the crypto economy. Retailers can use the company’s primary financial account in the cryptoeconomy; institutions can use a marketplace with a pool of liquidity to transact in crypto assets, and ecosystem partners can use the company’s technology and services to build crypto-based applications and securely accept crypto assets as payment. Coinbase Global, Inc. is situated in Wilmington, Delaware, and was created in 2012.

In 2012, Ehrsam and Brian Armstrong co-founded bitcoin exchange Coinbase. It has subsequently expanded to become the largest crypto brokerage in the United States. Ehrsam departed Coinbase in 2017, although he is still on the board of directors and controls around 6% of the company’s equity; Coinbase went public in April 2021. He co-founded Paradigm, crypto investing business with over $1 billion in assets, in 2018. Ehrsam graduated from Duke and spent two years at Goldman Sachs as a foreign currency trader before founding Coinbase. He spent hundreds of hours as a kid playing World of Warcraft, where he first learned about in-game digital money.

Opinion: I’ll say the same thing I said last week about Coinbase. Ehrsam looks like he’s painting the tape with his 30,030 share buy of $COIN at $60.60.  I’ll give the company credit as its share price has moved up in the past week and not sunk to the bottom of the ocean with bitcoin.  I wrote April 4/20/21 about the lunacy of Coinbase, trading in the $300s. Now it’s $75 and I believe still headed lower with brief bear market rallies.  Where is the credit I get?  Someone, please answer these questions for me. What happens when the music stops?

How Many Bitcoins Have Been Mined?

As of January 2022, 18.9 million bitcoins have already been mined, with about 2.1 million bitcoins still to be released. The total Bitcoin supply is capped at 21 million.3

How Long Does It Take to Mine One Bitcoin?

The length of time it takes to mine one Bitcoin depends on the amount of the block reward, or how many new Bitcoins are paid to crypto miners for generating a new Bitcoin block. The current block reward is 6.25 Bitcoins, and a new block is produced approximately every 10 minutes. A new bitcoin is mined on average every 1.6 minutes.12

What Happens to Mining Fees When Bitcoin’s Supply Limit Is Reached?

Bitcoin mining fees will disappear when the Bitcoin supply reaches 21 million. Miners will likely earn income only from transaction processing fees, rather than a combination of block rewards and transaction fees. Will that be enough to maintain the network as it is Bitcoin is currently viewed as stored value entity like gold and not used for transactions to any large degree. There are plans in the works for Bitcoin lightening.

 

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Name: Shmunis Vladimir
Position: CEO/Chairman
Transaction Date: 2022-05-24 Shares Bought: 20,000 Average Price Paid: $59.52 Cost: $1,190,442.00
Company: RingCentral Inc (RNG)
RingCentral, Inc. is a North American provider of software-as-a-service solutions that let businesses communicate, collaborate, and connect. The company’s Message Video Phone? the platform is used to provide enterprise cloud communications and contact center solutions. RingCentral Office, a high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax solution; RingCentral Contact Center, a collaborative contact center solution that delivers omnichannel; and RingCentral Engage Digital, a digital customer engagement platform that allows enterprises to interact with their customers, are some of the company’s products. RingCentral Engage Voice, a cloud-based outbound/blended customer engagement platform for midsize and enterprise businesses, and RingCentral Video, a video meeting service that includes our RCV video and team messaging capabilities and offers video and audio conferencing, file sharing, contact, task, and calendar management, are among the company’s other products. RingCentral Professional, a cloud-based virtual telephone service that provides inbound call answering and management services for professionals, and RingCentral Fax, an online fax service, are also available.

Vlad Shmunis is a problem-solver with a love for coming up with amazing solutions. His parents immigrated to the United States in the 1970s after he was born in Ukraine while it was still a part of the Soviet Union. Shmunis and his younger sister ended up in San Francisco, where they attended public high schools. Shmunis later earned a bachelor’s degree in computer science from San Francisco State University, which he later advanced to a master’s degree.

Opinion:  Too much competition in this industry. RNG will never work short of a sale to another company. This could happen

 

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Name: Stallings Robert W
Position: Director
Transaction Date: 2022-05-24 Shares Bought: 28,263 Average Price Paid: $51.01 Cost: $1,441,650.00
Company: Texas Capital Bancshares Inc. (TCBI)
Texas Capital Bancshares, Inc. is a full-service financial services organization that provides tailored solutions to businesses, entrepreneurs, and individual consumers. Commercial banking, consumer banking, investment banking, and wealth management are all services provided by the organization. It provides commercial deposit accounts, lockbox accounts, and cash concentration accounts, as well as information, wire transfer initiation, ACH initiation, account transfer, and service integration services; and consumer deposit accounts, such as checking accounts, savings accounts, money market accounts, and certificates of deposit. It serves the Texas urban regions of Austin, Fort Worth, Dallas, Houston, and San Antonio. Texas Capital Bancshares, Inc. is based in Dallas, Texas, and was founded in 1996.

Stallings, Robert William Texas Capital Bancshares, Inc., Independent Director Robert William Stallings, the founder of ING Pilgrim Capital Corp., is a businessman who has led five different firms and is Chairman & Chief Executive Officer of Stallings Capital Group, Inc. Texas Capital Bancshares, Inc., MGA Insurance Co., Inc., Texas Capital Bank NA, and Crescent Realty, Inc. are all on Mr. Stallings’ board of directors. Mr. Stallings has previously served as Trust Manager at Crescent Real Estate Holdings LLC, Executive Chairman and Chief Strategic Officer at GAINSCO, Inc., Chairman and Chief Executive Officer of Resource Bank, NA (Dallas, Texas), Chairman of ING Pilgrim Capital Corp., and Chief Executive Officer of Pilgrim Capital Corp. Johnson & Wales University, Inc. awarded Robert William Stallings an undergraduate degree

Opinion: We banged the table on this one. It worked as well as several of the other regional banks that have been buying. Thank you Director Stallings for buying more shares of $TCBI.If we’re not going into recession regional banks with rising rates are good bets. The wind is behind them.  The Texas economy is good and TCBI should be a beneficiary.

 

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Name: Smach Thomas J
Position: Director
Transaction Date: 2022-05-25 Shares Bought: 5,000 Average Price Paid: $49.99 Cost: $249,950
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.

Mr. Smach has served as the Chairperson of the Board since June 2011, and as a member of the Board since April 2005. Riverwood Capital Management LP was formed by Thomas J. Smach. He is currently the Chairman of Crocs, Inc., as well as the Co-Founder and Managing Partner of Riverwood Capital Management LP. Pinnacle Holding Co. LLC, Technisys SA, Supply Chain Resources Group, Inc., and Industrious National Management Co. LLC is all on his board of directors. Thomas J. Smach previously served as Chief Financial Officer of Flex Ltd., Chief Financial Officer of Flextronics International, Inc., and Chief Financial Officer, Treasurer, and Senior Vice President of The DII Group, Inc. Mr. Smach graduated from the State University of New York with a bachelor’s degree. Mr. Smach is a certified public accountant. From 1997 to April 2000, he served as the Senior Vice President, Chief Financial Officer, and Treasurer of The Dii Group, Inc., an EMS provider and publicly-traded company that merged with Flextronics in early 2000. In addition to currently serving on the board of various private companies around the world, Mr. Smach also served on the board of various public companies in both the United States and Germany.

Opinion: This hasn’t worked yet but insiders keep buying. Very low multiple stock that purchased a fast-growing teen brand, Hey Dude. Maybe they paid too much, maybe they didn’t but the insiders are betting heavily they know what they are doing. We’re long and underwater but staying patient.

 

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Name: Myers Franklin
Position: Director
Transaction Date: 2022-05-24 Shares Bought: 10,700 Average Price Paid: $46.27 Cost: $495,089
Company: HF Sinclair Corp (DINO)
HF Sinclair Corporation is a privately held energy corporation. It manufactures and distributes gasoline, diesel fuel, jet fuel, renewable diesel, specialized lubricants, specialty chemicals, specialty and modified asphalt, and other goods. The firm also owns and runs refineries in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming, and sells its refined products mostly in the Southwest, the Rocky Mountains, the Pacific Northwest, and other Plains states.It also provides fuel to roughly 1,300 independent Sinclair-branded stations and licenses the Sinclair brand to around 300 more sites, as well as participating in the developing renewables industry. The firm also manufactures base oils and other specialist lubricants, as well as providing petroleum product and crude oil transportation, terminaling, storage, and throughput services to the industry. HF Sinclair Corporation is based in Dallas, Texas, and was founded in 2021.

Since February 2019, Mr. Myers has served as the Company’s Chairperson of the Board of Directors. Since February 2013, Mr. Myers has been a senior advisor at Quantum Energy Partners, a private equity business. From 2009 to 2012, Mr. Myers worked as an operating adviser for Paine & Partners, LLC, a private equity company, and from 2008 to 2009, he worked as a Senior Advisor for Cameron International Corporation, a publicly listed manufacturer of flow equipment products. From 2003 to 2008, he worked as Senior Vice President and Chief Financial Officer at Cameron, as well as President of Cameron’s compression business from 1998 to 2001 and Senior Vice President and General Counsel from 1995 to 1999. Mr. Myers also worked at Baker Hughes Incorporated from 1988 to 1995 as Senior Vice President and General Counsel, and for Fulbright & Jaworski (now Norton Rose Fulbright) from 1978 to 1988 as an associate and eventually a partner.

Opinion: The popular dinosaur gas station is the Sinclair brand you see dotted around the West. That’s the merger of Sinclair and HF Refining. I have to admit I’m surprised this stock has worked so well.  All things gas and oil are having their day. I didn’t realize petroleum refiners necessarily went along for the ride. It’s all about the crack spread and it must be good.

 

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Name: Breaux Paul W.
Position: Vice President
Transaction Date: 2022-05-20 Shares Bought: 15,000 Average Price Paid: $32.57 Cost: $488,550.00
Company: Carvana Co (CVNA)
Carvana Co. is a holding business that operates an e-commerce platform for the purchase of secondhand automobiles. Consumers can use the Company’s platform to research and locate a vehicle, inspect it utilizing 360-degree vehicle image technology, acquire finance and warranty coverage, purchase the vehicle, and schedule delivery or pick-up, all from the comfort of their own home or office. Customers can acquire financing, complete a purchase, and schedule delivery or pick-up online using the Company’s transaction technologies and web platform. Customers in select markets can also choose to pick up their automobiles from a vending machine. Over 266 metropolitan markets are served by its in-house distribution network.

Paul Breaux is the Company’s Vice President, General Counsel, and Secretary. From 2008 through 2015, Mr. Breaux worked as an attorney with Andrews Kurth LLP (now Hunton Andrews Kurth LLP) in Houston, Texas. Mr. Breaux’s representative expertise at Andrews Kurth included a wide range of general commercial transaction matters. Mr. Breaux has a Harvard Law School J.D., a University of Texas at Austin B.A. in Plan II Honors, and a University of Texas at Austin B.B.A. in finance.

Opinion: Carvana revolutionized the way cars can be sold. People love their model -that I’m certain of. VP Breaux bought 15000 shares at $32.57. From the 10k, they have to retain 5% of the loan portfolio, that’s a manageable number. I’ve heard they lose money on every sale but I don’t know that. It sounds like typical short-seller tripe. The fact they had to pay 10%on of their loan to buy Kar’s auction business, does alarm me and I suppose backs up the case that they lose money but used cars are now exhibiting behavior that has never happened before (going up in value- that will certainly normalize in time) My guess is that one thing settle down they can replace loan that with a cheap convertible note or something less egregious.  One thing I know is that people don’ spend $560 million of their OWN money perpetuating a bad business. you do that with other people’s money.  Yes, they’ve taken some serious money out already but another insider just bought more stock today. We don’t have a big position but am happy with the $30 price we own it. I just wish I had the balls to stand in the way of it at $370

 

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Name: Rady Ernest S
Position: CEO/Chairman/10% Owner
Transaction Date: 2022-05-23 Shares Bought: 21,197 Average Price Paid: $32.32 Cost: $684,984.00
Company: American Assets Trust Inc. (AAT)
American Assets Trust is a self-administered real estate investment trust (REIT) that primarily owns, develops, and operates premium retail, office, and residential property throughout Northern and Southern California, as well as Oregon, Washington, Texas, and Hawaii. Its 3.1 million square foot portfolio includes over ten commercial complexes, roughly ten office buildings, a 369-room hotel and retail complex, and over five multi-family residential assets. Salesforce, Autodesk, the Veterans Benefits Administration, and well-known businesses Kmart, Lowe’s, Sports Authority, Old Navy, and Vons are among the tenants. The company was founded in 1967 as American Assets and became public in 2011.

Ernest S. Rady is the Company’s Chairman of the Board, President, and Chief Executive Officer. Mr. Rady has been our President and Chief Executive Officer since September 2015, and Chairman of our Board since our initial public offering in January 2011. Mr. Rady formed American Assets, Inc. in 1967 and is currently its president and chairman of the board of directors. Mr. Rady also established the Insurance Company of the West and Westcorp, a financial services holding company, in 1971. Mr. Rady was chairman and chief executive officer of Westcorp from 1973 to 2006. Mr. Rady was the chairman of Western Financial Bank from 1982 to 2006, as well as the chief executive officer from 1994 to 1996 and 1998 to 2006.

Opinion: Although we don’t own it, it will probably work. The office market will come back- even if it’s subdivided into dozens of coworking solutions like WeWork which is largely sold out everywhere.  Putting in a ping pong table and espresso machines is a pretty easy model to emulate. Real estate is something you want to own in an inflationary market which is what we’re in and likely to remain in for a far longer time than most people realize.

 

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Name: Cummins Wes
Position: Director
Transaction Date: 2022-05-20 Shares Bought: 18,882 Average Price Paid: $29.52 Cost: $557,418.00
Company: Vishay Precision Group Inc. (VPG)
In the United States, Israel, the United Kingdom, the rest of Europe, Asia, and Canada, Vishay Precision Group, Inc. designs, manufactures, and distributes specialized sensors, weighing solutions, and measuring systems. Sensors, Weighing Solutions, and Measurement Systems are its three segments. Precision resistors, strain gauges, load cells, onboard weighing systems, and process weighing solutions are among the company’s offerings. Data acquisition systems for avionics, steel production measurement systems, material testing, and simulation systems, and data acquisition systems for vehicle safety testing are all available from the firm. Industrial, test and measurement, transportation, steel, medical, agriculture, avionics, military and space, and consumer product sectors all employ the company’s products.

B. Riley Asset Management LLC was created by Wesley Carl Cummins. Mr. Cummins is the Chairman and CEO of Applied Blockchain, Inc., as well as the Chief Investment Officer of B. Riley Asset Management LLC. Sequans Communications SA and Vishay Precision Group, Inc. are also on his board of directors.
He has worked as an analyst at Harvey Partners LLC, an analyst at Kennedy Capital Management, Inc., a research analyst at Nokomis Capital LLC, a president at Riley Investment Management LLC, a research director and head of capital markets at B. Riley & Co. LLC, an analyst at Needham & Co. LLC, and a director at B. Riley Securities, Inc. He graduated from Washington University in St. Louis with a bachelor’s degree.

Opinion: Vishay had a very good quarter.  I’m fine with Cummins as a passive investor but I’d be leary if he had an active role.  Vishay looks like a beneficiary of bringing supply chains and manufacturing closer to home. The company is showing nice quarter-over-quarter growth and increasing profitability.

Fourth Quarter Highlights:

  • Revenues of $90.0 million increased 19.3% from a year ago
  • Earnings per diluted share were $0.44, as compared to $0.01 reported a year ago
  • Adjusted diluted earnings per share* were $0.56, as compared to $0.43 reported a year ago
  • Gross profit margin was 38.7%, as compared to 38.1% a year ago
  • Adjusted gross profit margin* was 40.3%, as compared to 38.0% a year ago
  • The operating margin was 9.7%, as compared to 7.8% reported a year ago
  • Adjusted operating margin* was 11.4%, as compared to 10.7% reported a year ago
  • Cash from operating activities was $15.5 million with adjusted free cash flow* of $9.6 million

 

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Name: Keenan Jeffrey
Position: Director
Transaction Date: 2022-05-23 Shares Bought: 6,000 Average Price Paid: $26.58 Cost: $159,480.00

Transaction Date: 2022-05-24 Shares Bought: 10,000 Average Price Paid: $26.41 Cost: $264,060.00

Transaction Date: 2022-05-20 Shares Bought: 11,000 Average Price Paid: $26.30 Cost: $289,255.00
Company: Schweitzer-Mauduit International, Inc (SWM)
Schweitzer-Mauduit International, Inc. and its subsidiaries offer innovative solutions and sophisticated materials to a variety of industries around the world. Advanced Materials & Structures and Engineered Papers are the two segments that it operates in. For the healthcare, construction, industrial, transportation, and filtration end-markets, the Advanced Materials & Structures business manufactures and sells resin-based rolled goods like nets, films, and melt-blown materials, as well as various coating solutions and converting services. Engineered Papers offers low ignition propensity cigarette papers that self-extinguish when not in use; reconstituted tobacco leaf, wrapper, and binder products for machine-made cigars; alkaline battery separator papers; and commodity paper grades for printing and writing, flooring laminates, and food service packaging. Botani, hemp, and botanical solution for the natural fibers sector provides hemp wraps, fillers, and rolling/pre-roll papers.

Founder of IESI Corp., Jeffrey J. Keenan is a businessperson who has been at the head of 6 different companies and holds the position of Executive Chairman of ACV Enviro Holding Corp. and Chief Executive Officer, CFO & Secretary at Synergy Environmental Corp. He is also on the board of Schweitzer-Mauduit International, Inc. In the past Mr. Keenan held the position of Principal at Acadia Partners LP, President & Chief Compliance Officer at Roark Capital Group, Inc., Chairman at IESI Corp., President at The United Co., General Partner & Managing Director at AEA Investors LP, and Principal at Lehman Brothers, Inc. Mr. Keenan received an undergraduate degree, a graduate degree and an MBA from The University of Chicago.

Opinion:  A fair amount of insider buying in this name. Not sure what gets me excited about this company other than a chronically low price.

 

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Name: Cobb William C
Position: Director
Transaction Date: 2022-05-23 Shares Bought: 10,000 Average Price Paid: $25.51 Cost: $255,100
Company: Frontdoor Inc. (FTDR)
In the United States, Frontdoor, Inc. offers home service options. The company’s home service plans include electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, spas, pumps, and central heating, ventilation, and air conditioning systems.It also provides ProConnect on-demand home services and Stream, a technology platform that employs augmented reality, computer vision, and machine learning to assist home service professionals to identify problems and make repairs fast and correctly. The American Home Shield, HSA, Landmark Home Warranty, OneGuard, Frontdoor, and Streem brands service homeowners. The company’s headquarters are in Memphis, Tennessee, where it was formed in 1971.

William C. Cobb is now the Independent Chairman of Frontdoor, Inc. Mr. Cobb is also a member of the Deluxe Corporation board of directors. President, Chief Executive Officer, and Director at H&R Block, Inc., Vice President-Colas at PepsiCo, Inc., President-eBay Marketplaces North America at eBay, Inc., President of eBay International AG, and Senior Vice President & General Manager at eBay International Advertising GmbH (both subsidiaries of eBay, Inc.), Chief Marketing Officer & Senior Vice President for Yum! Brands, Inc., and Chief Marketing Officer & Senior Vice President for Yum! Brands, Inc.Mr. Cobb graduated from the Kellogg School of Management with an MBA and the University of Pennsylvania with a bachelor’s degree.

Opinion: Front door is a roll-up for the fragmented home warranty service.Director Cobb’s purchase of 10,000 at $25.51 won’t help you from waiting a week to get a warranty repair on your airconditioning system that went on the blink. I’m not a fan of roll-ups. You basically inherit the good and the bad qualities of a number of companies. Perhaps in time, Frondoor will develop best of business practices but for now, this is financial engineering. I guess I shouldn’t be so hard on Front Door but having had a number of home warranties and fed up with them, I’m biased.

 

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Name: Hoover R David
Position: Director
Transaction Date: 2022-05-20 Shares Bought: 10,000 Average Price Paid: $23.33 Cost: $233,269
Company: Elanco Animal Health Inc. (ELAN)
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as functional nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations in approximately 90 countries in North America, Europe, the Middle East, Africa, Latin America, and the Asia-Pacific.

R. David Hoover is Independent Chairman at Elanco Animal Health, Inc. He is also on the board of DePauw University (former Chairman), Children’s Hospital Colorado, O-Web Technologies Ltd., and Boulder Community Hospital and a Member of The Colorado Forum. In the past he occupied the position of Chairman at Ball Corp. and Vice Chairman & Chief Financial Officer at Ball Aerospace & Technologies Corp. (a subsidiary of Ball Corp.), Member of Can Manufacturers Institute, Inc., and Member-Deans Council at Kelley School of Business.

Opinion: Hope springs eternal. Veterinary medicine should be recession-resistant. It hasn’t for Elan. Dir Hoover keeps buying this falling knife. I hope one day he is right. The market has certainly taken a turn up and with it ELAN

 

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Name: Ziyad Nassem
Position: Director
Transaction Date: 2022-05-24 Shares Bought: 2,035 Average Price Paid: $135.83 Cost: $276,414.00
Company: Middleby Corp (MIDD)
In the United States, Canada, Asia, Europe, the Middle East, and Latin America, the Middleby Corporation designs, produces, markets, distributes and supports a variety of food services, food processing, and residential kitchen equipment. Conveyors, combi, convection, baking, proofing, deck, speed cooking, and hydrogenation ovens; ranges, fryers, rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills; stainless steel fabrication, custom millwork, professional mixers, stainless steel fabrication, custom millwork, and professional refrigerated.

The Audit Committee includes Mr. Ziyad. Since 2017, he has been a member of the Middleby Board of Directors. Since 1983, Mr. Ziyad has served as the Chief Operating Officer of Ziyad Brothers Importing. Ziyad Brothers Importing, founded in 1966, is a significant distributor and global marketer of a diversified array of food goods, representing international clients including Nestle, Kraft, and Bel. Mr. Ziyad’s significant expertise in global food marketing, branding, and financial management is invaluable in Board discussions on ethnic food distribution, cross-border commerce, global ethnic food trends, and brand management and marketing.

Opinion:  I think the buyer here just believes the stock is cheap.  The business has been growing revenues nicely but a lot of this growth has come from acquistions. This is not the way we want to see companies grow.

 

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Name: Galbut Russell W
Position: Director
Transaction Date: 2022-05-23 Shares Bought: 100,000 Average Price Paid: $15.13 Cost: $1,512,500.00
Company: Norwegian Cruise Line Holdings Ltd. (NCLH)
Norwegian Cruise Line Holdings Ltd. operates as a cruise line in North America, Europe, Asia-Pacific, and globally through its subsidiaries. Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises are the company’s brands. Itineraries range from three to 180 days, with stops in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti, and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. The firm has 28 ships with roughly 59,150 berths as of December 31, 2021. It sells its products through retail/travel advisors, onboard cruise sales, meetings, incentives, and charters, among other channels. Norwegian Cruise Line Holdings Ltd., situated in Miami, Florida, was formed in 1966.

Russell W. Galbut is the Managing Principal of Crescent Heights, one of America’s largest and most well-respected residential condominium developers. Mr. Galbut and Crescent Heights are “best in class” developers with a solid track record of new constructions and restorations, having been involved in the urban mixed-use real estate industry for over 30 years. Crescent Heights has produced over 50,000 residential units in over 15 cities from coast to coast, including pioneering the condo hotel idea. Mr. Galbut earned his CPA certification in Florida after graduating from Cornell University’s School of Hotel Administration (currently inactive). Mr. Galbut graduated from the University of Miami School of Law with a J.D. in 1980. From September 2005 until Norwegian Cruise Line Holdings Ltd. acquired Prestige Cruises International, Inc. or its predecessor in November 2014, Mr. Galbut served on the Board of Directors of Prestige Cruises International, Inc. or its predecessor. He has also served on various philanthropic boards and is a member of the Cornell University School of Hotel Administration’s Dean’s Advisory Board.

Opinion: People are dying to go on a cruise and I’m not talking about Covid 19. Pent-up demand is not yet back to 2019 levels but Director Galbut’s 100,000 purchase of $NCLH  at $15.13 gives me confidence that the boomers are back. Fuel and food costs are off the charts but last week’s 7% bump Norwegian Cruise lines has more to cruise.

 

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Name: Bok Scott L
Position: CEO,Chairman,10% Owner
Transaction Date: 2022-05-23 Shares Bought: 80,943 Average Price Paid: $11.25 Cost: $910,667
Company: Greenhill & Co Inc. (GHL)
Greenhill & Co., Inc. is a global financial and strategic consultancy firm that works with businesses, partnerships, institutional investors, and governments. The firm offers advice services connected to mergers and acquisitions, divestitures, restructurings, financings, private capital raising, and other comparable activities. It also counsels clients on strategic issues such as activist shareholder defense, special committee initiatives, licensing agreements, and joint ventures, as well as the valuation, negotiating strategies, industry dynamics, structure alternatives, transaction timing and price, and financing options. In addition, the organization provides debtors, creditors, governments, and other stakeholders with restructuring consulting services, as well as acquirers of distressed enterprises and assets, with advice on restructuring alternatives, capital structures, and sales or recapitalizations. It also helps customers find and capitalize on incremental sources of wealth, as well as court-assisted reorganizations by formulating and securing permission for reorganization plans, as well as putting them into action.

Scott L. Bok is our Chief Executive Officer, having previously served as Co-Chief Executive Officer and, prior to our formation in 2004, as Co-President. Mr. Bok has also been on the board of directors of Greenhill & Co., Inc. since its inception. Mr. Bok was a member of the two-person administrative committee that oversaw Greenhill’s activities from 2001 until the firm’s incorporation. In February 1997, he joined Greenhill as a Managing Director. Mr. Bok worked for Morgan Stanley & Co. from 1986 to 1997 as a managing director in the mergers, acquisitions, and restructuring department, where he was stationed in New York and London. He worked at Wachtell, Lipton, Rosen & Katz in New York from 1984 to 1986, where he focused on mergers and acquisitions and securities law.

Opinion: Greenhill is an investment banker and there is not much going on. It’s hard for me to imagine it gets worse from here. Better days ahead but we all only have so much money to invest.

 

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Name: Lutnick Howard W
Position: Chairman,10% Owner
Transaction Date: 2022-05-23 Shares Bought: 277,000 Average Price Paid: $10.83 Cost: $2,999,965.00
Company: Newmark Group Inc. (NMRK)
Newmark Group, Inc. is a commercial real estate firm that operates in the United States and abroad. Capital markets, such as investment, debt, and structured finance, and loan sales; agency leasing, property management, and valuation and advisory; and commercial real estate due diligence consulting and advisory services, as well as government-sponsored enterprise lending, loan servicing, mortgage broking, and equity-raising services are among the company’s investor/owner services and products. Tenant representation, real estate management technology systems, workplace, and occupancy strategy, worldwide corporate consultancy, project management, account and transaction management, and lease administration and facilities management services are among the company’s occupier services and products.

Howard W. Lutnick is the Chairman and CEO of Newmark Group, Inc. (which operates as Newmark), one of the world’s leading commercial real estate advisory firms; Chairman and CEO of BGC Partners Inc., a leading global brokerage and financial technology firm; and Chairman and CEO of Cantor Fitzgerald L.P., one of the world’s leading financial services firms. Cantor’s managing general partner is CF Group Management, Inc.Mr. Lutnick has been Chairman of the Board and CEO of CF Finance Acquisition Corp., a special purpose acquisition company (the “Cantor SPAC”), since July 2014. Mr. Lutnick has been Chairman of the Board and Chief Executive Officer of Rodin Global Property Trust, Inc. and Rodin Income Trust, Inc., both non-traded real estate investment trusts, or REITs, since February 2017. From February 26, 2015, till the closure of BGC’s merger with GFI in January 2016, Mr. Lutnick served as Chairman of the Board of Directors of GFI Group Inc. (“GFI”).

Opinion: Commercial real estate has been a tough market. As the Pandemic eases, perhaps markets get better.  Howard is a brilliant investor and if I understood the story better, I’d take a shot.  There just too many simpler idea out there.

 

Finviz Chart

Name: Gates William H III
Position: 10% Owner
Transaction Date: 2022-05-19 Shares Bought: 93,342 Average Price Paid: $10.58 Cost: $987,142.00

Transaction Date: 2022-05-23 Shares Bought: 64,179 Average Price Paid: $10.37 Cost: $665,790.00

Transaction Date: 2022-05-19 Shares Bought: 62,162 Average Price Paid: $10.22 Cost: $635,207.00
Company: Western Asset Inflation-Linked Income Fund (WIA)
Guggenheim Partners, LLC has established the Western Asset/Claymore Inflation-Linked Securities & Income Fund, a closed-ended fixed income mutual fund. Western Asset Management Company, Western Asset Management Company Limited, Western Asset Management Company Ltd., and Western Asset Management Company Pte. Ltd. are all co-managers of the fund. It makes investments in fixed income markets all around the world. The fund invests largely in investment-grade inflation-linked securities such as US TIPS, corporate bonds, and mortgage-backed securities. Western Asset/Claymore Inflation-Linked Securities & Income Fund is based in the United States fand was founded on September 25, 2003.

At the age of 13, Bill Gates wrote his first software program. In high school, he co-founded Traf-O-Data, a company that marketed traffic-counting systems to municipal governments, with a group of programmers who digitised their school’s payroll system. In 1975, while still a student at Harvard, Gates teamed up with a buddy from his hometown, Paul G. Allen, to create software for the earliest microcomputers. They started by converting BASIC, a popular programming language for large computers, to a microcomputer-friendly version. With the success of this effort, Gates dropped out of Harvard during his junior year and co-founded Microsoft with Allen. When Microsoft licensed an operating system called MS-DOS to International Business Machines Corporation—then the world’s largest computer supplier and industry pacesetter—for use on its first microcomputer, the IBM PC, Gates’ clout in the baby microcomputer industry grew significantly (personal computer). IBM swiftly established the technical standard for the PC market after its debut in 1981, and MS-DOS pushed out competing operating systems. While Microsoft’s independence affected IBM’s relationship, Gates skillfully manipulated the larger corporation into becoming permanently reliant on him for critical software.

Opinion: If Bill Gates is buying, what more can you say other than this is one of many of his investments.  This is a leveraged bet on TIPS, not a bad idea

 

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Name: Noto Anthony
Position: CEO
Transaction Date: 2022-05-24 Shares Bought: 37,056 Average Price Paid: $6.72 Cost: $249,027.00
Company: SoFi Technologies Inc. (SOFI)
SoFi Technologies, Inc. is a corporation that specialises in digital personal finance. Members can borrow, save, spend, invest, and protect their money through the Company. To offer products to members and suit their financial needs, the Company has built a financial services platform. Lending, Financial Services, and Technology Platform are the three business segments of SoFi. Its Lending division offers a variety of loan options, including school loans, personal loans, and house loans. SoFi Money, SoFi Invest, SoFi Credit Card, and SoFi Relay are among the company’s financial services offerings, which include cash management and investing services. Its Technology Platform provides Clearing Brokerage Services and Technology Platform Services. SoFi ‘s mobile application is available on iOS and Android. The Company also maintains SoFi Bank’s community bank business and footprint, including its three physical branches in Sacramento, Live Oak, and Yuba City, California.

Anthony is the CEO of SoFi and a board member of the company. Prior to joining SoFi, he was the company’s chief operational officer since November 2016, and its chief financial officer since joining in July 2014. Prior to joining Twitter, Anthony worked at Goldman Sachs for over four years as the co-head of global TMT investment banking. He joined Goldman Sachs in 1999 and served as the head of communications media and Internet equity research until being promoted to partner in 2004. Anthony spent almost three years as the National Football League’s chief financial officer before returning to Goldman.

Opinion: A financial supermarket to serve all needs has been a dream for more than 30 years in the making. I doubt if SOFI makes it happen.

 

Finviz Chart

Name: Best Robert T.
Position: Director
Transaction Date: 2022-05-13 Shares Bought: 225,000 Average Price Paid: $4.64 Cost: $1,044,000.00
Company: SmartRent Inc. (SMRT)
Residential property owners and operators, homebuilders, institutional house purchasers, developers, and inhabitants in the United States can all benefit from SmartRent, Inc.’s comprehensive smart home operating system. Its system is meant to give communities insight and control over their assets while also saving money and increasing income potential for residents through all-in-one home control products. Smart apartments and houses, access control for buildings, common spaces, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi are among the company’s products and solutions. Customers may also make use of expert services such as training, installation, and support. SmartRent, Inc. is based in Scottsdale, Arizona, and was launched in 2017.

Robert Best, 75, has been a member of our Board of Directors since the Business Combination was completed. From January 2016 to June 2017, Mr. Best served as an Independent Trustee of Colony Starwood Homes (previously NYSE: SFR and now part of Invitation Homes Inc. (NYSE: INVH)). Mr. Best was a member of the Colony American Homes, Inc. board of directors until it merged with Starwood Waypoint Homes in January 2016. Mr. Best founded, chairs, and leads Westar Associates, a private real estate development firm founded in 1980. Mr. Best has overseen the development of over 70 projects totaling over $2.0 billion in Southern California, spanning numerous commercial and residential product categories. Prior to starting Westar, Mr. Best was a partner at Carver Companies, where he was in charge of shopping center development purchase, entitlement, leasing, finance, management, and disposal. Mr. Best was a founding member of the Lusk Center for Real Estate at the University of Southern California.

Opinion:  This one might have legs. I don’t want to chase it up 33% but I would watch it. There is demand for the product.

 

Finviz Chart

Name: Lamond David
Position: Director
Transaction Date: 2022-05-20 Shares Bought: 66,500 Average Price Paid: $3.17 Cost: $210,850.00
Company: Applied Molecular Transport Inc (AMTI)
AMT is leveraging its propriety technology platforms to create gastrointestinal (GI)-select therapeutics that harness naturally occurring transport and targeting mechanisms to cross the protective barrier of the intestinal epithelium (IE). Once across the IE, the therapeutics gain privileged access to the immune cell-rich environment of the GI tissue as well as the hepatic portal system and downstream systemic circulation. With this privileged access, AMT’s goal is to develop transformative new oral therapeutic treatment options that offer patients greater efficacy and tolerability than available with today’s therapeutics. AMT has a robust pipeline of oral biologic product opportunities, including AMT-101 which is currently in Phase 1b clinical development for the treatment of adults with ulcerative colitis (UC). AMT-101 is a novel, gut-selective, investigational oral biologic fusion protein of interleukin 10 (IL-10), an anti-inflammatory cytokine. Derived from AMT’s proprietary platforms, AMT-101 is engineered to cross the selective barrier of the IE and enhance localized IL-10 directly within the immune-cell rich environment of GI tissue where up to 75 percent of immune cells reside.

In September 2018, David A. Lamond joined our board of directors. Mr. Lamond has been the president of En Pointe LLC, an investment firm, since April 2016. He was the president, chief executive officer, and chief investment officer of Lamond Capital Partners LLC from 2011 to 2016. Mr. Lamond is also on the board of directors of Cortexyme, a biopharmaceutical business, and previously served on the board of directors of Arrinex, a medical device company. Mr. Lamond also serves on the boards of directors of Tipping Point Community and Ubuntu Pathways, two non-profit organizations. Mr. Lamond graduated from Duke University with a B.A. in History and a J.D. from Duke Law School.

Opinion:vWho knows, these small-cap biotechs are like playing Russian roulette. I’d pass

 

 

 

 

 


 

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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.

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you shouldn’t be reading my emails anyway. In other words, the typos are free.

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.

qThe 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.q

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’ 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

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