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Another Roller Coaster Week on the Coronavirus Train- Insider Buying is Picking Up

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The headlines don’t stop. Most of them scary and getting worse by the day. That didn’t stop insiders from buying falling knives but not in the quantity I’m looking for to mark the all clear.  The pace of buying is clearly picking up, though IT SEEMS that Friday the 28th was the climax and insiders paused as the news headlines worsened about the virus.  In times of increasing investor panic, insiders will restore confidence, especially when they buy across the board. In this post, we examine insiders purchasing $200,000 of more of their company’s shares, looking for clues that may … Read more

What were insiders buying during this historic market sell-off?

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This was a week like none other- well, that’s not quite correct, a week like only 4 others in terms of market losses since 1945.  The Coronavirus put the stock market into intensive care. It remains to be seen if the general population follows it into the sick ward. The Dow  closed Friday, 357 points, or 1.4%, lower, on its seventh day in the red. At its worst, the index was down nearly 1,086 points. It dropped 3,583 points this week, including its worst one-day point drop in history on Thursday. On a percentage basis, Thursday’s 4.4% slump was the worst performance since … Read more

The Insiders Fund update and coronavirus thoughts

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Just wanted to update the partners and interested parties on recent events and market turmoil. As of yesterday the Fund was up about 2.88% for the month. These are unofficial numbers but highly reliable nonetheless. After today, I expect that gain will be gone.  The market is in the grips of a psychological panic caused by the coronavirus.  It doesn’t matter if this is justified or not, it just is. Particularly hard hit have been airlines which was our highest exposure as an industry group.  We have been reducing this exposure and as of the time of writing, we have … Read more

$AAL American Airlines Coronavirus has muted effect- revenue guaranteed by Boeing

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American Airlines has less Asia revenue than its’ peers UAL and Delta but has sold off even more. Considering that Boeing is reimbursing the airline for lost use of the 737 MAX this provides a built-in buffer.  American has been lagging its own projections because of a shortage of planes, not demand.  A demand hit caused by the virus is in part paid for by Boeing by virtue of the MAX grounding. American just reported great earnings even with significant operational challenges. CEO Parker on the recent earnings call said that American would have two year FREE cash flow of … Read more

Notable Insider Buying Week Ending November 1,2019

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It’s really quiet on the Western Front when it comes to insider buying.  American Airlines insiders continue to buy. James Clemmer CEO of AngioDynamics bought a small amount on a poor earnings showing. This might be window dressing. Richard Kinder keeps on amassing KMI.  Why not? If you were the billionaire namesake, you would know the 5% dividend is money in the bank. I like the Lilly buy. If you can grab stock near that price you will probably do well. FedEx is bold; the biggest director buy and the first for  board member Edwardson since 2008. As a rule, … Read more

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The esteemed Ned Davis research letter might give The Insiders Fund an unexpected push toward the finish. As readers of our blog should know we’ve been pretty keen on the undervalued airline sector.  We especially like Delta here with its recent pullback in price.  We also own American Airlines and United Airlines.  We know we are in good company with Warren Buffett, Delta’s largest shareholder. I keep thinking he is going to buy Delta as one final hurrah.  That’s what an Investor Business Daily article said back in April. With the recent pullback, it might be more likely. The analyst, … Read more

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Grounding of Boeing’s MAX plane, labor troubles, and recession fears have haunted shares of American Airlines this year. But some investors are betting that the worst is over and the shares could climb higher in 2020. Source: Shares of American Airlines Could Be Ready for Takeoff After a Very Bad Year – Barron’s American Airlines has been one of our core holdings most of the year.  We were up a significant amount but watched all of our profits disintegrate and turn to losses.   We traded Delta and United very profitably but American just seemed too cheap to trade. We were … Read more

Insiders See Opportunity in All Kinds of Markets, Especially Bad Ones

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Insider Buying Week Ending June 7, 2019 American Airline insiders buy stock in beaten down airline lifting price action. Waiting on large payback from Boeing 737 Max grounding.  American is incredibly cheap will have significant free cash flow.and will be a direct beneficiary of increased trade with Mexico as it flies more routes than any other airline. John Idol, Chairman of the Board and CEO of Capri Holdings goes all in fashion conglomerate holding company with luxury iconic brands, Versace, Jimmy Choo, and Michael Koors. RE/MAX Holdings disclosed that its co-founder and chairman David Liniger bought a total of 122.9K … Read more

No Time For Heroes

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  The Insiders Fund, went 80% to cash last Wednesday in part market-driven, in part disillusioned with the likelihood of a China trade deal.  The Fund had a great run up this year, over 24%, and now many stocks appear grossly over-valued.  The “cloud” software stocks seem to have nothing but clouds themselves supporting their valuations.  To top it off Uber went public at an $85 billion dollar valuation. This is for a company that has never made money, maybe never will as the drivers are estimated to be making less than minimum wage after factoring the cost of their … Read more

The Best Way to Play Boeing is to Buy American Airlines $AAL

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While many investors who have been richly rewarded by owning Boeing Co have seen sharp share price appreciation, I’d say owning Boeing is dead money for now. It will take weeks if not months for the 737 Max to get recertified by the FAA and the reputational hit could take far longer. After listening to American Airlines earnings conference call and Boeing executives, there is some doubt that Boeing is going to reimburse the victims of the Lion’s Air and Ethiopian Airlines for the crashes, it’s absolute certainty that Boeing will reimburse its major US airline customers like American Airlines … Read more