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 $3 seeing large insider buying over the last two weeks during the Coronavirus panic.
|Filing Date||Company||Ticker||Industry||# Insiders||Most recent trade||Shares bought||Avg. Price||Total|
|26-Mar-2020||Evans & Sutherland Computer…||ESCC||Computer Peripherals||1||26-Mar-2020||10,576,487||1.19||$ 12,586,020.00|
|26-Mar-2020||Northern Oil and Gas, Inc.||NOG||Oil & Gas Drilling & Exploration||4||20-Mar-2020||7,690,000||1.05||$ 8,045,745.00|
|25-Mar-2020||Overseas Shipholding Group …||OSG||Shipping||3||24-Mar-2020||3,093,092||2.44||$ 7,562,204.00|
|26-Mar-2020||National CineMedia, Inc.||NCMI||Marketing Services||1||26-Mar-2020||1,861,866||2.86||$ 5,319,096.00|
|19-Mar-2020||At Home Group Inc.||HOME||Retail-General||1||17-Mar-2020||1,618,415||2.83||$ 4,585,692.00|
|24-Mar-2020||Cerecor Inc.||CERC||Other||1||23-Mar-2020||1,992,219||2.05||$ 4,085,907.50|
|26-Mar-2020||Performant Financial Corp||PFMT||Business Services||1||24-Mar-2020||4,246,028||0.75||$ 3,205,280.75|
|20-Mar-2020||Callon Petroleum Co.||CPE||Independent Oil & Gas||3||19-Mar-2020||2,405,050||1.21||$ 2,899,120.75|
|27-Mar-2020||EntreMed Inc.||CASI||Biotechnology||1||26-Mar-2020||1,524,495||1.7||$ 2,593,174.25|
|20-Mar-2020||Precigen, Inc.||PGEN||Biotechnology||1||20-Mar-2020||1,000,000||2.24||$ 2,241,625.00|
|26-Mar-2020||Eyenovia, Inc.||EYEN||Other||3||24-Mar-2020||1,068,102||2.09||$ 2,233,104.75|
|17-Mar-2020||Agile Therapeutics, Inc.||AGRX||Drugs – Generic||2||13-Mar-2020||1,075,000||1.79||$ 1,924,750.00|
|26-Mar-2020||Entercom Communications Corp.||ETM||Broadcasting – Radio||4||26-Mar-2020||874,812||2.15||$ 1,884,850.75|
|27-Mar-2020||Opko Health, Inc.||OPK||Drug Manufacturers – Other||2||26-Mar-2020||1,176,000||1.49||$ 1,755,336.25|
|28-Feb-2020||Semileds Corp||LEDS||Semiconductor- Memory Chips||1||25-Nov-2019||500,000||3||$ 1,500,000.00|
|23-Mar-2020||Barfresh Food Group Inc||BRFH||Beverages – Soft Drinks||1||19-Mar-2020||3,000,000||0.5||$ 1,500,000.00|
|27-Mar-2020||Gran Tierra Energy, Inc.||GTE||Independent Oil & Gas||5||25-Mar-2020||5,519,670||0.25||$ 1,354,203.38|
|24-Mar-2020||Renesola Ltd||SOL||Other||1||23-Mar-2020||1,892,660||0.69||$ 1,305,686.00|
|26-Mar-2020||Houston Wire & Cable Company||HWCC||Electronics Wholesale||6||26-Mar-2020||560,619||2||$ 1,121,883.50|
|18-Mar-2020||Del Taco Restaurants, Inc.||TACO||Restaurants||2||17-Mar-2020||401,275||2.74||$ 1,101,023.62|
|23-Mar-2020||Adma Biologics, Inc.||ADMA||Other||1||19-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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