It’s All About Passing on Higher Costs to Customers

Wealthy investors tend to see inflation as a friend, not an enemy. Rising prices tend to benefit assets like stocks and real estate over time. Owning companies that can pass on all, or nearly all, of inflation’s higher costs can fare even better over time. When inflation subsides, higher prices remain in place, leading to better profits for investors. While there may be some headwinds now, great companies can be had for a reasonable value. One such company is McDonald’s (MCD). The ...
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Insider Trading Report: Uber Technologies Inc (UBER)

Yasir Al-Rumayyan, a director at Uber Technologies Inc (UBER), recently bought 250,000 shares. The buy increased his holdings by 181 percent, and came to a total cost of $5.145 million. This is the first insider buy since the company CEO bought 200,000 shares last May. Two insiders have been slight sellers of shares over the past year, but overall there has been little activity since the company went public. Insiders own 0.2 percent of the ride-sharing company. Shares have lost a quarter ...
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Unusual Options Activity: Macy’s (M)

Shares of department store chain Macy’s (M) are down about in-line with the overall stock market over the last year. One trader sees a further decline ahead. That’s based on the May $19 puts. With 105 days until expiration, 20,012 contracts traded compared to a prior open interest of 346, for a 58-fold jump in volume on the trade. The buyer of the puts paid $0.77 to make the bearish bet. Shares recently traded for about $23.50, so they’d need to fall ...
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Keep Investing in Companies Raising Prices as Inflation Remains High

Inflation rates are coming down off of a 40-year high. But they’re still far higher than average. The process will take time to fully play out. When it does, prices will remain higher than they are now overall. Companies that can raise prices and still maintain market share and their customer base will be just fine as this trend fully plays out. Some companies keep customers thanks to popular, low-priced products. Others are able to raise prices as there are few, if ...
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Insider Trading Report: Sherwin Williams (SHW)

John Morikis, CEO at Sherwin Williams (SHW) recently added 2,207 shares. The buy increased his holdings by just over 1 percent, and came to a total cost of $500,327. The CEO was the last buyer of shares at the company nearly a year ago, with a 2,000 share pickup for about $519,000. One division president sold shares in the past year. Going back further, a number of company executives were sellers of the stock. Overall, insiders own about 8.5 percent of ...
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Unusual Options Activity: United Parcel Service (UPS)

Shares of package delivery company United Parcel Service (UPS) are down about 10 percent over the past year. One trader sees a move higher for shares in the months ahead. That’s based on the March $195 calls. With 43 days until expiration, 33,836 contracts traded compared to a prior open interest of 130, for a staggering 261-fold rise in volume on the option. The buyer of the calls paid $1.45 to make the bullish bet. UPS shares recently traded for about ...
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This Household Name Has A Better Future Trend Than Its Biggest Competitor

Many industries tend to have a few big players. There will likely be a single player that dominates the industry. But things can change. And underdog companies looking to catchup to the big dog can potentially deliver better returns while doing so. That can come about from a better product or service mix, better customer service, or a way to improve profitability during an economic downturn. In the home improvement retailer space, Lowe’s (LOW) is down more than the overall market in ...
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Insider Trading Report: Banc of California (BANC)

Andrew Barker, a director at the Banc of California (BANC), recently bought 48,435 shares. The buy increased his holdings by 50 percent, and came to a total cost just over $800,800. This insider was also the most recent buyer with a 12,900 share pickup back in February 2022. The company President and CEO also picked up about $100,000 worth of BANC shares at the time as well. There have been no insider sales over the past three years. Overall, company insiders ...
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