In case you didn’t notice, on July 27, Eastman Kodak (NYSE: KODK) was trading at $2.50, and it rose to more than $50 yesterday. That type of move doesn’t come by very often. But if you’ve been a War Room member since March, you would have seen this message…
Then in May, you would have seen this…
Rivers made at least four times his money on that play!
“KODK Aug 21 ’20 $7.50 Call; in yesterday at $2.35. out at $11.50… +388%… thx war room.” – Rivers 7/29/2020 at 9:50 a.m.
Look at this chart – it’s parabolic!
Kodak was loaned $765 million by the U.S. government to produce drugs stateside. Then President Trump got in on the action and mentioned the deal favorably. That plus a small float of trading shares and lots of media coverage led to this historic move for Kodak!
The executives say that the deal was made a week ago. Maybe so. But in my opinion, the groundwork for the deal was laid out months ago. You can’t just turn a faucet on and say you’ll produce drugs.
Maybe that’s why the executives were loading up on shares in March after the crash in the market. Good call, right?
Actually, there’s some science behind insider buying. It’s an indicator I use in The War Room all the time!
There are few feelings better than knowing you have an edge in the market over your fellow investors. Yet most people don’t believe you can have an edge. Most people believe in a market where every piece of information is available to all investors all the time, where the stock is always “perfectly” priced.
Then a bombshell comes, and suddenly the rules are different. It could be an accounting investigation, a positive trial from a cancer-fighting drug, a huge contract win, earnings that blow away the street, a takeover or countless other occurrences.
For investors, these types of announcements are the holy grail for stocks… if they own the stocks, that is. Others look at these announcements and wish they knew the information ahead of time. “Someone knew,” they think.
In many cases, someone does know before something is going to happen. They know months before something happens, and they don’t just sit on the information. They buy stock with the information and then wait patiently for the news to come out – news that they know, most of the time, will come out.
It sounds illegal doesn’t it? Too good to be true?
It’s not. It’s perfectly legal, and it happens every single day.
If you know where to look, you too can be privy to this type of trading information. It’s called insider trading. But it’s the legal type.
When a company insider buys shares of the company, they must report the purchase within a couple of days, by law. That’s one of the “tells” that I use to decide whether the opportunity is worth taking. However, there are other more important tells that you need to know about.
Most insiders buy for one reason… They know something good is coming …read more
Source:: Investment You