Small cap $1 million+ insider buys during the Coronavirus crash. Babies thrown out with the bathwater?

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A three day (dead cat?) bounce propelled the S&P 500 over 13% higher last week, rescuing stocks, at least temporarily, from the worst stretch of performance since the dark days of 1929. During the Coronavirus crash over the last several weeks, stocks were liquidated indiscriminately, as investors scrambled to raise cash. And if investors panic-sold stalwarts like Boeing (BA), and JP Morgan Chase (JPM), what do you think they did with low-priced, small-cap stocks? Most of these little stocks sunk like stones dumped into in the ocean. However, in the midst of the panic, some insiders quietly added to stakes in many of these castaways. Indeed, I count 21 small cap $1 million+ insider buys since March 16.

There are lots of things one can do with a million bucks — buying penny stock isn’t necessarily at the top of the list…especially when the global economy looks to be shut down for a while. As wealth evaporates like water on a hot stove, you’d assume that smart money investors would be extra careful where they place a million. So, when an insider — a C-level officer, director or 10% owner of a public company — buys a big chunk of a small, illiquid stock in the middle of a crash, he or she must believe there’s real value there.

Below are small cap $1 million+ insider buys since March 16. Stocks under $3 when purchased. It should go without saying — do your homework before buying any stock — especially small caps — and especially in this volatile market! Diversify, and don’t chase. If you decide to invest in any of these names, odd are you’ll get another chance or two as the market consolidates in the days and weeks to come.

Small cap $1 million+ insider buys. Stocks under $3 seeing large insider buying over the last two weeks during the Coronavirus panic.

Filing DateCompanyTickerIndustry# InsidersMost recent trade Shares bought Avg. Price Total 
26-Mar-2020Evans & Sutherland Computer…ESCCComputer Peripherals126-Mar-2020      10,576,487 1.19 $  12,586,020.00
26-Mar-2020Northern Oil and Gas, Inc.NOGOil & Gas Drilling & Exploration420-Mar-2020        7,690,000 1.05 $    8,045,745.00
25-Mar-2020Overseas Shipholding Group …OSGShipping324-Mar-2020        3,093,092 2.44 $    7,562,204.00
26-Mar-2020National CineMedia, Inc.NCMIMarketing Services126-Mar-2020        1,861,866 2.86 $    5,319,096.00
19-Mar-2020At Home Group Inc.HOMERetail-General117-Mar-2020        1,618,415 2.83 $    4,585,692.00
24-Mar-2020Cerecor Inc.CERCOther123-Mar-2020        1,992,219 2.05 $    4,085,907.50
26-Mar-2020Performant Financial CorpPFMTBusiness Services124-Mar-2020        4,246,028 0.75 $    3,205,280.75
20-Mar-2020Callon Petroleum Co.CPEIndependent Oil & Gas319-Mar-2020        2,405,050 1.21 $    2,899,120.75
27-Mar-2020EntreMed Inc.CASIBiotechnology126-Mar-2020        1,524,495 1.7 $    2,593,174.25
20-Mar-2020Precigen, Inc.PGENBiotechnology120-Mar-2020        1,000,000 2.24 $    2,241,625.00
26-Mar-2020Eyenovia, Inc.EYENOther324-Mar-2020        1,068,102 2.09 $    2,233,104.75
17-Mar-2020Agile Therapeutics, Inc.AGRXDrugs – Generic213-Mar-2020        1,075,000 1.79 $    1,924,750.00
26-Mar-2020Entercom Communications Corp.ETMBroadcasting – Radio426-Mar-2020           874,812 2.15 $    1,884,850.75
27-Mar-2020Opko Health, Inc.OPKDrug Manufacturers – Other226-Mar-2020        1,176,000 1.49 $    1,755,336.25
28-Feb-2020Semileds CorpLEDSSemiconductor- Memory Chips125-Nov-2019           500,000 3 $    1,500,000.00
23-Mar-2020Barfresh Food Group IncBRFHBeverages – Soft Drinks119-Mar-2020        3,000,000 0.5 $    1,500,000.00
27-Mar-2020Gran Tierra Energy, Inc.GTEIndependent Oil & Gas525-Mar-2020        5,519,670 0.25 $    1,354,203.38
24-Mar-2020Renesola LtdSOLOther123-Mar-2020        1,892,660 0.69 $    1,305,686.00
26-Mar-2020Houston Wire & Cable CompanyHWCCElectronics Wholesale626-Mar-2020           560,619 2 $    1,121,883.50
18-Mar-2020Del Taco Restaurants, Inc.TACORestaurants217-Mar-2020           401,275 2.74 $    1,101,023.62
23-Mar-2020Adma Biologics, Inc.ADMAOther119-Mar-2020           500,000 2.1 $    1,050,000.00

You can follow insider buying at the SEC’s Edgar website or at sites like WhaleWisdom.com.

Contact Mark about investing based on SEC filings and smart money disclosures.

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