As gold's ascent gains momentum, investors looking for ways to play the gold rally may want to analyze the gold stocks hedge funds have been buying.
Gold hit a five year high on Friday as rate cut expectations, dollar weakness, trade war fears and...
When the equities in your portfolio plummet, you may find yourself asking: What are these stocks really worth? They’ve fallen ten or twenty percent – what’s to keep them from declining even further? Well here’s one thing that can anchor a portfolio: Sizeable dividend payments.
When screening insider trades, my interest is always piqued when I see both top executives of a company buying shares. It implies that the two people with the best information on that company agree the shares are a good value.
That’s what just happened at FS KKR Capital Corp (FSK). Both the Chief Investment Officer (CIO) and the CEO, along with a director, purchased a total of $495,000 of their company’s stock.
Amin Maredia, formerly the CEO of Sprouts Farmers Market (SFM), was a valuable member of the natural grocer’s management team over the last few years. How valuable? Well, his services are apparently worth $600 million. Because that’s how much market value SFM stock lost on Friday after Maredia suddenly resigned.
When Steve Kelley was named CEO of Amkor Technology (AMKR) in May of 2013, AMKR was around $4.50. As an incentive, the company granted him 750,000 shares in stock and options at the equivalent of $4.50. After the grant fully vested, SEC filings indicate the CEO sold most all of the granted stock and options between Nov. of 2016 and June of 2017 at an average price of $11.38 for total proceeds of $8.9 million.
AMKR closed Wednesday at $6.53.
So, since his employment began with Amkor, Kelley did not buy any AMKR on the open market. His only actions were disposing of shares granted to him as compensation. His timing was good.
Question: If you’re a top hedge fund manager and the value of your highest conviction stock suddenly drops by 20%, what do you do? Answer: You buy more.
Late in 2018, investors panic-sold en masse. Indiscriminate selling. Babies thrown out with bathwater. While the public freaked-out about interest rates, trade wars and recessions, leading hedge funds added to their best ideas.
John C. Goff, a Texas Billionaire investor and chairman of Fort Worth-based Crescent Real Estate, filed a 13D on June 13 disclosing an 18.3% position in Houston-based Contango Oil and Gas ( MCF $5.91).
Many “effects” in finance have been linked to the calendar. There’s the Weekend Effect, the Turn-of-the-Month Effect, the October Effect, even the Mark Twain Effect. But probably the most widely discussed is the January Effect. This is the tendency for stocks – particularly small-cap stocks – to outperform in January vs other months.
The January Effect is a market “anomaly” – market price behavior that “shouldn’t” happen.
When the stock market swoons, I like to watch insider buying to see where the smart money is finding value. Here are three stocks with interesting insider activity that also showed good relative strength in Monday’s weak market.