Companies Improving Their Profitability Now Can Win Big in the Next Bull Market

This earnings season has been a mixed bag. Companies are reporting big layoffs and warning on an economic slowdown and the impact of inflation. Yet what sounds like bad news now could be bullish later on. That’s because companies laying off staff are finding that they can do as much – if not more – with a reduced headcount. Lower staffing costs could lead to a further cost savings that increases profitability – which could be a boon for shareholders. Of the ...
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Insider Trading Report: Lear Corp (LEA)

Jonathan Foster, a director at Lear Corp (LEA), recently added 231 shares. The buy increased his holdings by 2 percent, and came to a total cost of $32,153. This marks the first insider buy at the company in the past two years. Otherwise, company insiders, particularly the company President and CEO, as well as the company treasurer, have been sellers of shares, largely from exercising options. Overall, insiders own 0.2 percent of the company. The automotive component manufacturer is down 14 percent ...
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Unusual Options Activity: Kohl’s Corporation (KSS)

Shares of department store chain Kohl’s Corporation (KSS) are down 44 percent over the past year. One trader sees a potential rebound in the next few weeks. That’s based on the March $30 calls. With 31 days until expiration, 5,143 contracts traded compared to a prior open interest of 116, for a 44-fold rise in volume on the trade. The buyer of the calls paid $3.40 to make the bullish bet. The stock recently traded for about $32, so shares are ...
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For Better Investment Results, Follow Companies Being Pushed to Improve

Markets are cyclical, and often so are companies. A great product or service won’t last forever. Once the market has been saturated, new products or features are needed to keep revenues growing at a company. For tech companies, this constant iteration is fantastic. It’s inexpensive to develop new ideas and roll them out. And for many tech services, new features can be added while keeping customers on a monthly payment plan. So it’s no surprise that a number of activist investors are ...
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Insider Trading Report: PacWest Bancorp (PACW)

William Hosler, a director at PacWest Bancorp (PACW), recently bought 3,750 shares. The buy increased his stake by 7 percent, and came to a total cost of $99,300. The director was the last buyer as well, with an 8,000 share pickup for $200,000 last June. The company’s CEO has sold shares twice since then, but still owns over 1 million shares of the company in total. Company insiders own 1.8 percent of shares. The California-based bank is down about 43 percent in ...
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Unusual Options Activity: V.F. Corporation (VFC)

Shares of apparel manufacturing company V.F. Corporation (VFC) are down about 55 percent over the past year. One trader sees further downside in the next three months. That’s based on the May $22.50 puts. With 95 days until expiration, 20,019 contracts traded compared to a prior open interest of 245, for an 82-fold rise in volume on the trade. The buyer of the puts paid $0.98 to make the bearish bet. Shares recently traded for about $26, so the stock would need ...
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Bet on Strong Brands, Even Amid Short-Term Setbacks

Customers will pay more for a brand-name product that they know and love. That’s true with everything from home goods to restaurants, and even to choices of entertainment. A company that invests in building a strong brand can create excess returns for shareholders over time. But even great companies will see setbacks. That can create reasonable buying opportunities to get in on the long-term wealth-creation benefits of owning great companies. That may be the case with Activision Blizzard (ATVI). The company owns ...
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Insider Trading Report: Nike (NKE)

Peter Henry, a director at Nike (NKE), recently bought 557 shares. The buy increased his holdings by 16 percent, and came to a total cost of about $70,000. This is the first buy at the company since last June, when another director picked up 10,000 shares for $1.03 million. Those mark the only insider buys over the past two years. Otherwise, a few company executives have been slight sellers of shares, mostly as stock options are exercised. Overall, company insiders own ...
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