Trading Tips Blog

Most industries tend to consolidate over time. That’s because they start out with a large number of players. As those who are overleveraged or poorly managed go bust, the better-run companies start to buy up worthy competitors to build their market share. This trend is currently underway in the gold sector. A number of deals have occurred in the past few years that have set records. And this week saw yet another merger announcement that will further keep competition down. The latest ...
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Oliver Brewer, President and CEO at Topgolf Callaway Brands (MODG), recently added 5,000 shares. The buy increased his stake by just under 1 percent, and came to a total cost of $85,596. The buy came a day after the company’s CFO added 10,000 shares, increasing his holdings by 8 percent, and coming at a cost of $177,900.  The two executives were last buyers of shares in December, both picking up 10,000 at that time. Overall, company insiders own 11.4 percent of ...
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Toymaker Hasbro (HAS) has seen its shares drop nearly one-third over the past year. While the stock has rallied in recent weeks, one trader sees a further decline ahead. That’s based on the August $55 puts. With 93 days until expiration, 4,008 contracts traded compared to a prior open interest of 108, for a 37-fold rise in volume on the trade. The buyer of the puts paid $1.73 to make the bearish bet. Shares recently traded for about $62.50, so the ...
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While the stock market has fared well so far this year, investors have been more cautious going into earnings. And most companies have reported a slowdown, but overall it hasn’t been as bad as expected. The wild card is the housing market. Rising interest rates and fewer homeowners looking to sell are creating a tight market, but one where prices could potentially drop. In that environment, homeowners may slow down home maintenance or improvements. That’s the fear going into earnings for big ...
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Gary Mick, CFO at Six Flags Entertainment (SIX), recently added 5,000 shares. The buy increased his holdings by 6 percent, and came to a total cost of $133,125. This marks the first insider activity at the company so far this year. The CFO was also the most recent buyer with 3 separate buys last December, when the share price was more than 20 percent lower than where it trades today. Overall, company insiders own 0.9 percent of shares. The theme park operator ...
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Paper materials company Mercer International (MERC) is down nearly 40 percent over the past year. One trader is betting on a sharp rebound in the coming months. That’s based on the August $12.50 calls. With 94 days until expiration, 22,725 contracts traded compared to a prior open interest of 146, for a 156-fold rise in volume on the trade. The buyer of the calls paid $0.15 to make the bullish bet. Shares recently traded for about $9, so they would need to ...
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One of the most powerful long-term investment trends is to invest in a company with a durable competitive advantage. For most companies today, that usually means offering a unique product that’s protected by a copyright or patent. Even though patents are temporary and copyrights won’t last forever, once a brand has been built, it can stand the test of time. And that can lead to higher returns versus investing in generic competitors. In the world of entertainment brands, it’s tough to argue ...
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Wes Morris, a Group President at Tyson Foods (TSN), recently bought 10,362 shares. The buy increased his holdings by 31 percent, and came to a total cost of $499,431. He was joined by another Group President who bought 2,040 shares, paying just over $99,700 to do so. These buys are the first insider buys at the company over the past two years. Generally, company executives have been slight sellers of shares, usually following the exercise of stock options. Overall, company insiders ...
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