Thursday, June 13, 2024

♟ Big Kahuna Trading!

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"Insiders are sending a signal with their cash."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Insider buying is one of my favorite indicators. I watch it like a hawk.

Recently, I've noticed a trend of "Big Kahuna" insider buys across the market.

These insiders are putting millions of their own dinero on the line for only one reason...

They think their shares are going higher.

Why else would they buy in the open market? After all, they have boat-loads of options already.

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They are sending a signal with their cash – putting their money where their mouth is, and you can understand why in cases like Cleveland Cliffs (CLF).

US Steel (X) - a major competitor which was much less profitable - just got a takeover bid at several times the multiple to market capitalization of CLF.

Of course, the insiders are buying! In fact, another buy just crossed as I am writing this...

Cleveland Cliffs 52 Week Performance
 

And they're certainly not alone. I'm seeing monster buys across the market on depressed stocks:

Zillow Group Inc. (Z) – The app based real estate play has been struggling since interest rates have moved higher and stayed there. But one insider, a director, just spent $100 million on shares in the open market for his investment fund.

Science Applications International (SAIC) – A defense contractor that sold off after a recent earnings miss has seen nice cluster buying in size over the last month.

SAIC 52 Week Performance
 

Snowflake Inc. (SNOW) – Another multi-million dollar buy. Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally.

VF Corporation (VFC) – VF Corp has seen million-dollar insider buying. This clothier has been beaten down over the past couple of years and is in the midst of a restructuring.

VF Corporation 2 Year Performance
 

Akamai Technologies (AKAM) – Another internet security product delivery company that has also been beaten down over the last year with a fresh million-dollar plus insider buy.

Cleveland Cliffs (CLF) – Like I mentioned above, Cleveland Cliffs is a major steel producer trading at multi-month lows that we've traded successfully in The War Room many times. Recent million-dollar buying here as well.

In The War Room and in Catalyst Cashouts Live, I have shown members how to play some of these insider signals for "Big Kahuna" wins and I expect to make some more great gains as a result of the plays we're in.

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YOUR ACTION PLAN

In The War Room and Catalyst Cashouts Live we like to use all types of strategies, sometimes we are cashing in our trades overnight, while sometimes we hold longer termed positions for months. Insider trades usually fall into the latter category, although we did close a win on one last week that we held for less than ten days!

The key is to be able to spot a legitimate trade (not a secondary offering or an option exercise), do the analysis and send the trade... in real time. And, that's what makes us the top dog.

Don't miss out on any more of our killer insider action plays. Join The War Room here and Catalyst Cashouts Live here today!


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