Last week, three insiders from Maiden Holdings, Ltd. (MHLD) filed Form 4s disclosing the purchase of 380,000 shares at an average price of $0.78 per share. An interesting cluster of buying. But here's what's astonishing -- just seven months earlier the stock traded at $8.75.
On February 28 , Martha Stewart's Sequential Brands (SQBG) announced that the lifestyle celebrity has teamed up with Canopy Brands (CGC) to develop and promote a line of hemp-based CBD products. SQBG stock spiked higher on the news, nearly doubling at one point before settling at $2.00...
Whether they’re called penny stocks, micro-caps, OTC stocks or “lottery tickets,” low-priced, illiquid stocks of small companies have a bad reputation with many investors. Unquestionably micro-cap stocks can be illiquid, risky and highly speculative. Nonetheless, Hedge Funds can and do hold lots of micro-caps.
Lottery ticket stocks are equities perceived by investors to provide a small chance of a huge payoff. Like playing the lottery, many investors find these stocks -- usually low-priced, thinly traded with little or no earnings -- very alluring. However, studies show that -- like the...
Billionaire Mori Arkin filed a 13D on Aclaris Therapeutics (ACRS), a development stage microcap biotech company with a promising treatment for common warts. Arkin bought the shares through his personal partnership, "The 1999 Company." In the activist filing he disclosed the following trades: Purchase/SaleSharesPriceDate Running ...
In a 13D filed Friday after market hours, Ault Global disclosed a 9.96% position in NTN Buzztime (NTN), a provider of interactive entertainment to sports bars and other venues across North America. Ault called NTN "undervalued and represented an attractive investment opportunity." On Jan....
Obscure stocks -- publicly traded, unknown, hidden companies with little or even no analyst coverage -- may not seem like good investments. Seriously, who wants to invest in a stock no one has ever heard of? Some of the top hedge fund managers in the world, that's...
Twenty-two minutes after regular market hours closed on July 2, an Orbimed Advisors Form 4 relating to Corvus Pharmaceuticals Inc (CRVS) was posted on the SEC's website. The hedge fund, a 10%+ holder and insider in CRVS, disclosed that between June 27 and July 1 it...
The January Effect and insider trading anomaly can combine for unusually profitable opportunities. As year-end approaches, it's a great time to scan the universe of equities for oversold, cheap stocks being accumulated by insiders. The January Effect refers to the tendency for stock prices -- especially...
Hedge fund managers with hundreds of millions of dollars rarely buy the illiquid shares of a micro-cap company -- but when they do it's often a prelude to much higher prices for that stock. Below I discuss the 13F "secret" to uncovering micro-cap winners as the "Whales"...