Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

On Deck Capital: Insiders Show Trust

|About: On Deck Capital, Inc. (ONDK), STKL
Summary

Originally posted on March 8, 2019 at www.theinsiderjob.com.

The recommendations have been accumulating since I started this blog, so from now on I will present past results in a more convenient table. Here it is, close to the end of trading today (note the SP500 suffered a 3% decline this week that had a strong effect on the stocks):

Purchased  Ticker    Cost    Current   Change

1/15/2019   LNDC      11.77    11.89     1.02%

2/1/2019     LOB       14.48    15.51      7.11%

2/8/2019     LJPC      5.73      6.96       21.47%

2/8/2019     UFI       21.78     21.63     (0.69%)

2/15/2019   TNAV      5.24     5.75       9.73%

3/4/2019     BKD       6.59     6.64       0.76%

3/4/2019     EQT      19.83    18.27     (7.87%)

Average 4.50%

Strong signal – On Deck Capital

On Deck Capital (ONDK), from New York, NY is one of the leading companies in the online small business lending market. The company evolves rapidly, has been profitable, and has been beating estimates regularly. The company has seen a stock price of $9 not so long ago, and results have only improved since. The CEO and two directors have been purchasing shares to the tune of about $120k in February, and other insiders jumped in whenever the stock dipped under $6. I’ll trust the insiders that this is a bargain price, and purchase the stock today for $5.70.

Potential signal – SunOpta

What to do with this one… SunOpta (STKL), from Mississauga, ON, engages in the sourcing, processing, and packaging of organic and non-genetically modified food and beverage products. Its price has been going down, to say the least (70% price cut) and nothing really new is seen on the horizon. However, analysts believe in its value (suggest $5-$6 target price from the current $3.75), and insiders have been buying heavily (as in over $1 million just in March 2019 by no less than 9 insiders!). What do they know? This all seems very tempting and I’ll keep it on my radar for the weeks to come.

Summary

When purchasing a stock based on insider activity I normally hold it for up to 6 months or 30% increase, whichever comes first. During that time the potential should unfold, and if not, it probably wouldn’t, at least in this round (unless there is additional significant insider activity). I’m purchasing ONDK at $5.70 and hope to see a nice return in the coming months.