Use Market Pullbacks to Buy Quality at a Reasonable Price

After its 10th longest winning streak in history, the stock market has finally pulled back. The S&P 500 sank to the 50-day moving average, a sign that the uptrend may be over. However, the market often has small pullbacks of this nature. These pullbacks cause investors to unwind leveraged positions, take profits, and look for new buying opportunities. Pullbacks are healthy, and typically happen a few times per year. With the recent pullback occurring at the start of earnings season, there may ...
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Insider Activity Report: Postal Realty Trust (PSTL)

Andrew Spodek, CEO and director at Postal Realty Trust (PST), recently added 10,000 shares. The buy increased his stake by 1%, and came to a total cost of $137,500. Spodek was the last insider buyer with a 20,000 share buy last September, paying $267,460. And he made a further five buys earlier in 2023. The company’s CFO and Treasurer were also slight sellers of shares last month. Overall, Postal Realty Trust insiders own 5.6% of shares. The office REIT, which mostly ...
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Unusual Options Activity: Harley Davidson (HOG)

Motorcycle producer Harley Davidson (HOG) has been flat over the past year, gaining just 3% as the overall market is up 20%. One trader sees the stock trending higher in the coming weeks. That’s based on the May 17 $39 calls. With 27 days until expiration, 3,879 contracts traded compared to a prior open interest of 172, for a 23-fold rise in volume on the trade. The buyer of the calls paid $1.65 to make the bullish bet. Harley shares recently traded ...
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Buy the Earnings, Not the Uncertainty

Markets hate uncertainty. An increase in uncertainty is a nearly guaranteed way to ensure that a company’s shares decline. Big uncertainties about the economy or geopolitical events can rattle the markets. The reverse is also true. Investors pay up for certainty. That’s a premium that investors can avoid by buying great companies when they’re still contending with uncertainty. One way to avoid uncertainty is to look at facts of a company that are certain, starting with its earnings. In particular, the trend ...
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Insider Activity Report: Walgreens Boots Alliance (WBA)

Inderpal Bhandari, a director at Walgreens Boots Alliance (WBA), recently added 3,000 shares. The buy is a new stake for the director, and came to a total cost of $54,150. The buy comes a few weeks after the company’s Global CFO picked up 6,000 shares for $116,280. Going further back, company insiders have generally been more likely to be buyers than sellers. A few sales have come following the exercise of stock options. Overall, Walgreens insiders own 17.4% of shares. The drugstore ...
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Unusual Options Activity: Warner Bros Discovery (WBD)

Media conglomerate Warner Bros Discover (WBD) has been out of favor with the market, sinking 41% over the past year. One trader sees further downside in the coming weeks. That’s based on the May 31st $8 puts. With 43 days until expiration, 125,286 contracts traded compared to a prior open interest of 111, for a massive 1,129-fold rise in volume on the trade. The buyer of the puts paid $0.52 to make the bearish bet. Warner Bros shares recently traded for about ...
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“Higher For Longer” Interest Rates Mean Choose Carefully

It’s always a stock picker’s market. Today, with the market slowing down after a massive rally, that’s more important than ever. And the latest earnings season shows that big banks can be profitable when interest rates rise, but there can be downsides too. That’s why it’s crucial that investors carefully look for winners that can succeed with today’s high interest rates. And that they’re structured to fare well when interest rates do start to decline later in the year. While interest rates ...
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Insider Activity Report: WD-40 Co (WDFC)

David Pendarvis, a director at WD-40 Co (WDFC) recently bought 328 shares. The buy increased his holdings by 7%, and came to a total cost of $77,000. This marks the first insider activity in two months, following a buy in February from a company VP who picked up 182 shares for $49,580. Going further back, there have been a mix of executive buys and sells, with the company’s CEO and CFO making multiple buys over the past two years. Overall, WD-40 ...
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