ARTICLES

January call buying suggests further rally. Over 2,400 contracts traded on the January 2020 $49 call option on Masco Corporation (MAS), an 11-fold rise in volume from the total prior open contracts of 225. The bet, expiring in 35 days, is for shares to rally another $2, from $49 to the strike price of $49, a 4.2 percent increase. With shares near their 52-week high already, but still in rally mode, the option looks like a leveraged bet on a continuation of the rally. Masco is a designer and manufacturer of building and home improvement projects such as faucets, showerheads, pools, and other components ...
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HR head continues to add to shares. Mary Beth DeNooyer, chief Human Resources officer at Keurig Dr Pepper (KDP), recently added another 6,500 shares to her holdings. The buy came to over $189,000, and raises her total holdings to 109,000 shares. This adds to further insider buys in 2019, mostly from DeNooyer and one of the company’s directors, with insiders waiting for shares to drop under $30 after a rally in November. All told, the only sales year to date have come from funds, not corporate insiders. Shares of the beverage company are having a choppy year, with a mere ...
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These companies have done well, but are positioned to do even better in the years ahead. Investing often involves walking a fine line between looking at a company’s operational performance, which can only be measured by past data, and looking at a company’s future prospects, which are only a prediction. That’s what allows for great and terrible investments alike. A company that just had a good run may falter, and a company that has done poorly may be about to turn around. Good tech companies on a run, however, may be able to show current growth while still having their best years ahead ...
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Tesla unveils Cybertruck and it didn’t go well. The shatterproof glass cracked. And the design, which looked like a combination of a few different cars with a sleek, dystopian film gray to it, got a lot of commentary as well. But the Cybertruck announcement of Tesla Motors could be a game-changing move for the company. Trading Tips’ Andrew Packer explains why in our latest video ...
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Director makes six-figure buy. Douglas Geoga, a director at Extended Stay America (STAY) recently added another 7,500 shares to his holdings. While the buy merely increased his stake by 1.4 percent, the total purchase price came to just over $108,000, and increased his total holdings to over 500,000 shares. Insider data has shown both buys and sells in the past year, with buys outnumbering insider sales in total, including a large cluster back in August. Extended Stay America owns and operates a network of 627 hotels, with a customer focused on the mid-priced, long-stay segment.  Shares have declined 17 percent ...
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Buy great companies with low debt for a great long-term, low-risk investment. Concerned about a recession? One quick way to filter for companies likely to do well is to search for companies with low debt. After all, companies with a lot of debt have to divert cash flow to paying principal and interest. Companies without debt have more cash available to reinvest in the company, reward shareholders, or buy up competitors during tough times. That’s why filtering for companies with solid growth and low or no debt is a worthwhile endeavor. A surprisingly large number of companies trade with low debt right now, and ...
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March call buying suggests rally. Over 6,800 contracts traded on the March 2020 $29 call options on Enterprise Products Partners (EPD). Against the prior open interest of 879, the trading marks an eight-fold jump in volume. Shares of EPD currently trade just under $28, so the options are a bet on another $1 rise in shares in the next 99 days before expiration, or a move just 4 percent higher. Shares have traded as high as $30 in the past year. While the option could offer a profit in the next 100 days, without shares breaking to new highs, ...
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Major owner adds another $2.5 million in shares. Spruce House Partnership, a major owner in GTT Communications (GTT), bought another 240,965 shares recently. While the buy only increased their holdings by 1.6 percent, the total cost still came to an impressive $2.5 million. The partnership now has over 15.3 million shares. The buy follows a 1.1 million share buy from the fund last week. Insider data this year shows some other insider buys as well, with only one sale by insiders. GTT Communications provides cloud networking services to customers worldwide. Shares have slid 64 percent in the past year as ...
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