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Hot And Cold Insider Purchases For The Week Of 31 May To 7 June 2019

|About: Cornerstone Building Brands, Inc. (CNR), TROX, Includes: AAL, BAS, BKSC, CONN, GALT, NOG, PTE, REI, RMBL

Continuing with the format change from two weeks ago, again looking at a large number of interesting insider purchases, and rating their strength. As always, I’ll continue following the results of new and previous selections, a new format is on the way.

  • GALT – ($$) – I recommend this stock in the past, but at the end, it’s the same ol’ biotech startup story - there are good signs, there are bad signs, and the stock will bounce up and down few more times before settling (or disappearing). Yes, there are insider purchases, and no, it’s not the first time (5th or 6th batch). Strong signal? Probably not. Can it jump? Like any biotech, at any given day.
  • CNR ($$$$$) – a perfect example of my investment concept. A solid “boring” metal building company goes through a costly measure but continues to perform in every aspect. The market doesn’t get it but the insiders’ sure do as they jump in with both feet.
  • TROX ($$$$) – I’m a little confused about this one. The company doesn’t look like it’s booming or about to, actually missed earnings last quarter and missed badly. However, the insider signal is super strong, and they proved in the past that they know what they are doing. The stock is also well positioned for a humble bounce. As always, when in doubt I go with the insiders. This is why we diversify, right?
  • REI ($$$) – it looks like the CEO believes in the company which is good (and it’s not a highly paid CEO, so the purchase is considerable), however, the company is a little bit of a gamble. Financials solid and stock positions solid. Let’s put it as a maybe and revisit if there are more purchases.
  • AAL ($$) – the insider signal is very strong, but the company is not doing so hot. It’s currently in a downward trading tunnel so I would like to wait and see. Not that this is a bad bet, just that there are better ones.
  • CONN ($$$) – nice financials, a nice mix of insider purchases, but… there have been insiders purchases at every stage of the last 4 years, and not all of them timed right. It’s another name to follow, in case it reaches previous lows while its financials remain solid.
  • NOG ($$$) – another company to follow. Financials are wonky, but the price is low enough to look good to important insiders, and many of them. Currently at a 1 year low, and I’ll wait until it gets to the 2 year low (i.e. under $1).
  • RMBL ($) – the company is a big question mark. Financials are a mess, and the insiders' mix is quite narrow. Too much of a gamble for me at this point.
  • PTE ($$) – it’s a biotech with a product and some income, so I give it more credit, but the insiders made purchases before when the stock was worth x4 of today's. Hence, for now, it’s low on my radar.
  • BKSC ($) – solid company, but from the insider perspective there’s nothing here. The insiders purchase shares regularly regardless of the stock position, so I can’t really learn anything from their behavior.
  • BAS ($) – looks like this stock is dying slowly - the insiders also purchased when the stock was x7 and x4, so can’t rely on their judgment too much, financials are less than stellar, and the stock position is depressing. Just no.