This evening we got alerted by our system that the Executive Chairman, President & CEO of Intrepid Potash, Inc. (ticker: IPI) bought 50,000 shares of his own company. Jornayvaz Robert P III paid an average of $2.30 per share. Earlier this year, on the 21st of March he also bought IPI shares and since then the stock price has nearly doubled. This guy certainly seems to time his insider purchases right.
We think that this is a very interesting insider buy and we picked up shares immediately. It seems that there is some serious resistance sitting at the $2.50 mark, but this insider buy could potentially push the stock through this multiple top. We are hoping to make a quick 8% profit here and we’ve set our closing order at just below $2.50. If it manages to push through the resistance at $2.50 it has large potential to go a lot of higher because there are currently a lot of people shorting this stock who will need to close their positions then.
Intrepid Potash, Inc. produces and sells potash and langbeinite products in the United States and internationally. It operates in two segments, Potash and Trio. The Potash segment offers muriate of potash or potassium chloride for use as a fertilizer input in the agricultural market; as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes in the industrial market; and as a nutrient supplement in the animal feed market. The Trio segment provides Trio, a specialty fertilizer that combines potassium, sulfate, and magnesium in a single particle. The company also offers salt for use in animal feed, pool salt, road and walkway treatment, and other industrial applications; magnesium chloride for use in the deicing and dedusting of roads; salt and potassium brines for well development and completion applications in the oil and gas industry; and metal recovery salt, a combination of potash and salt to enhance the recovery of aluminum in the aluminum recycling processing facilities. Intrepid Potash, Inc. was incorporated in 2007 and is based in Denver, Colorado.
Today in the early morning at 9.56am our system alerted us of a large insider buy in FORM Holdings Corp. Their director Richard Abbe picked up 39,670 shares on Friday, May 19th. He paid an average of 1.54 per share, making a total investment of $61,139. The stock jumped up today and we could have grabbed a quick and easy profit, but did we?
As you can see on the screenshot below, the insider buy of today is not the only insider trade over the last days. However, our system did not alert us of the other buys due to the small value size. The stock had gone up already a little bit on the news of the multiple smaller insider buys and therefore we did not pick up any shares this time. Learning of the day: Once again it shows us that we should keep emotions out of the game and just trust our system. More than 80% of our alerts make us quick and easy profits so we should just stick with playing the numbers game.
FORM Holdings Corp., together with its subsidiaries, develops, acquires, and monetizes intellectual property worldwide. It operates through three segments: Intellectual Property, Fli Charge, and Group Mobile. The company’s intellectual property portfolio consists of approximately 600 patents and patent applications covering telecom infrastructure, Internet search, ad-insertion, and mobile technologies. It also designs, develops, licenses, manufactures, and markets wire-free conductive power and charging solutions, such as conductive charging pads and associated cases for phones, tablets, and laptops. In addition, the company operates as a full service reseller of rugged computers, rugged tablets, rugged mobile devices, rugged mobile printers, vehicle computer docking and mounting gears, power accessories, wireless communication products, antennas, carrying cases, peripherals, and accessories, and other related products to emergency first responders, municipalities, and corporations. The company was formerly known as Vringo, Inc. and changed its name to FORM Holdings Corp. in May 2016. FORM Holdings Corp. is based in New York, New York.
In April our algorithm picked up a significant insider buy in Oramed Pharmaceuticals Inc.: Li Xiaopeng, a Director of the company, bought 52,814 shares worth 334,313 dollars that day. The price? $6.33. Today ORMP is listed at $8.48… This represents a gain of +32% from the April 19 alert. If you had sold it on April 26, just 1 week (!!!) after the insider trading alert, you would have a quick profit of 40% in your pocket as you can see on the screenshot below.
A +40% gain…Li Xiaopeng knows what he is doing and he timed his buy perfectly! The reason why the stock went up and is still going up further is because ORMP received patents in multiple continents for their new drug. I received a few e-mails in my personal mailbox about the ORMP insider buying alert and some subscribers made a lot of money here. Although I would advise everyone to stay methodical, I am happy that many made huge financial strides on this trade (and that some take the time to write these delightful notes)!
Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the use of orally ingestible capsules or pills for delivery of polypeptides. Its product portfolio includes ORMD-0801, an oral insulin capsule, which has completed Phase IIb clinical trials for the treatment of diabetes; and ORMD-0901, an analog for GLP-1 gastrointestinal hormone, which has completed Phase Ib clinical trials for the treatment of type 2 diabetes. The company operates primarily in Israel. The company was formerly known as Integrated Security Technologies, Inc. and changed its name to Oramed Pharmaceuticals Inc. in April 2006. Oramed Pharmaceuticals Inc. was founded in 2002 and is based in Jerusalem, Israel.
Recently I have been asked more and more about what Stockspikes.com really brings to the table. About what our mission and our vision is. About how we are different or how we can make a difference in a world filled to the rim with gurus, “professionals”, advisers, consultants, websites, etc. Private equity firms and angel investors have taken notice of Stockspikes.com and our approach and wanted to talk shop. Needless to say, we are not interested in creating a Fortune 500 company or taking money from wolves who will then tell us how to run our business. Nevertheless, the story I tell them is borrowed from a book or movie you will all recognize.
A few weeks ago I watched one of my favorite movies again: Moneyball (2011). If you have not seen it yet, it is an unbelievable film adapted from an even better book published in 2003. ‘Moneyball: The Art of Winning an Unfair Game’ is a book by Michael Lewis about the Oakland Athletics baseball team. It walks you through how the team overcame adversity and its disadvantaged revenue situation (vs. the New York Yankees for example) by analytically selecting players for their baseball team based on specific statistics. Although he seriously stepped on the fragile toes of conventional baseball wisdom in the process, the Oakland A’s general manager, Billy Beane, managed to put together a competitive team in comparison to much wealthier teams. Well, Stockspikes.com plays stock market Moneyball by following Legal Insider Buying Activity.
There are many ‘teams’ out there who play traditional ball on the stock market. All the investment banks like Goldman Sachs, JP Morgan, Morgan Stanley, etc. and traditional investors like Warren Buffet, George Soros, etc. They are the rich teams. One of the quotes of the movie that always stuck with me was: “If we play like the Yankees in here (referring to the scouting team’s meeting), we will lose to the Yankees out there (referring to future match-ups with rich teams).” Many of the investment banks and gurus have what you do not have yet: millions or never mind billions. Because of that huge pile of cash they have, they can play the stock market game in a traditional way. With big ticket slow moving stocks and lots of time/patience.
5% in a big stock can often take a while, but if you put in 100 million dollars you get 5 million dollars profit. Nice. Do you have 100 million dollars? The Oakland Athletics did not either. The baseball team also needed to get ready, they could not wait 30 years to become competitive. So how do you play the game with 50K, 10K, 1K? You play stock market moneyball. You find cheap stocks with key statistics that predict theoretical performance. Why would you not? The information is available out there and like Jonah Hill’s character in Moneyball, Stockspikes wrote an algorithm to automate the scouting process. We find relevant, high potential insider buys and take action in the same stocks. It’s safe, reliable, and fast.
At the end of the movie after the play-offs, Billy Beane gets a call from the Boston Red Sox. They offer him an extremely attractive job offer, but he declined and stayed with the Oakland Athletics. I have no interest in becoming affiliated with any huge investment bank. Stockspikes.com will always remain independent. Although I will never be nominated for an Academy Award as Best Actor in a Leading Role, I hope you understand now why Stockspikes.com does what it does. If you want to get the same alerts that land in our mailbox and the one from our premium subscribers automatically, subscribe for a Free Trial.