Friday, December 2, 2022

♟ What Insiders Are Buying Right Now

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U.S. Petroleum and Oil

"Each one of these companies has seen large and recent insider buying."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

It's no secret I follow insider trading - you can follow my REAL-TIME posts and premarket insider and market commentary on my free Twitter feed, @tradeforreal.

Right now I am seeing insiders step up to the plate in the energy sector. And why not? Oil and gas prices are down 30% to 40% from their recent highs, and the fundamentals for energy look great.

Light Crude Oil Prices
 

The war in Ukraine, the OPEC cutback, China's reopening and the winter season are just four reasons energy may be the sector to step into.

And there is a floor of sorts on energy prices, as the U.S. must refill its SPR (Strategic Petroleum Reserve) at some point after a massive drawdown. The government has stated it will start buying at levels below $70 per barrel… very close to where oil traded earlier this week.

So it's no surprise that insiders are stepping in. They see demand, and they are willing to put their money where their mouths are.

MASSIVE Sales Record 🚀🚀🚀

Rocket
 

One company just set another massive sales record.

The company brings in more revenue than Netflix or Tesla... yet it trades at a fraction of the price. And there's a very unusual reason. See for yourself here.

These three companies are seeing nice insider buying, and each one has a different angle.

1)  Enviva (EVA) is a producer of wood pellets, and it is shipping tons to Europe to help with the energy crisis. Its 6.3% dividend is pretty juicy, too. Insiders have been buying the heck out of the shares.

Enviva Performance
 

2)  Transocean (RIG) is a provider of offshore drilling rigs.

Transocean Performance
 

3)  HighPeak Energy (HPK) is a small cap, low-cost explorer and producer of oil and natural gas.

HighPeak Energy Performance
 

Each one of these companies has seen large and recent insider buying. Their businesses are doing very well, yet their share prices are depressed. That makes for opportunity in a market that is sorely lacking in great opportunities that present great value.

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YOUR ACTION PLAN

These are the types of plays I cover in Insider Matrix, where I use a proprietary formula that has decimated the returns from the markets in 2022, one of the worst years on record.

Click here to start getting my Insider Matrix trades today.

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FUN FACT FRIDAY

Consumer spending remains robust. As a result, credit card debt has risen sharply this year - which has generated a lot of hype in the media. But the mainstream talking heads are overlooking a key piece of data: Relative to disposable income, credit card debt remains well below pre-COVID levels.

Credit Card Debt Still Well Below Pre-COVID Levels
 

But remain cautious here. While consumer credit card debt is not the flashing red alert the media makes it out to be, consumer savings are continuing to slow. Savings are expected to keep falling as consumers spend their cash piles. J.P. Morgan projects excess savings to be depleted by mid-2023.

Consumer Savings Continuing to Slow
 

 

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