Insiders Are Piling Into This Company

Dear Outsider,

What would you do if you could predict the future?

Better yet what if you could create the future?

Would you warn the world of any impending disasters to make sure people are safe?

Or keep it to yourself and devise a scheme to profit?

We know from the James Bond film Tomorrow Never Dies that the villain always chooses the latter.

In the movie, which has aged particularly well, media mogul Elliot Carver attempts to start a war between the U.K. and China by publishing news articles about future events that haven’t happened yet. He attempts to write the future through publishing what we’d call “fake news” today.

MovieWeb writes, “His evil comes from his 24-hour-a-day coverage and the lies that this permits him. He is a villain for the Twitter age, created before Twitter even existed.”

Carver represents the real media moguls of today like Rupert Murdoch and Mark Zuckerberg. An article from UCR says that the plot of the movie aged so well because Carver recognizes before anyone else that power in the modern world does not come from weapons or armies but from information. And he’s willing to “manipulate the world for his own profits.”

In the modern era, many of our so-called leaders have chosen the latter as well — profits.

Take the pandemic, for example.

It was the greatest wealth transfer in modern history.

The rich got richer and the poor got poorer.

And it was all because of information that hadn't been released yet.

Right before COVID-19 was officially declared a pandemic, our lawmakers were making big money moves.

Georgia senator (and wife of NYSE chairman Jeffrey Sprecher) Kelly Loeffler sold $3.1 million of stock after a closed-door meeting alerting her of the pandemic. Former North Carolina senator Richard Burr sold $1.7 million of stock after the same series of meetings.

In 2021, Forbes found that billionaires had added $1.2 trillion to their collective wealth since the pandemic began.

It makes you wonder how many of these billionaires were created in the stock market.

It turns out quite a lot.

And they used one simple trick... insider buying.

Insider Buying Made Simple

You see, insider buying isn’t the same as insider trading, which is illegal.

Insider buying simply refers to company insiders, institutions, or politicians buying shares of their own company or a company in an industry they influence. It’s perfectly legal as long as they disclose it to the SEC, which acts as a legal gatekeeper. So all we have to do is find all the publicly available SEC documents and boom, we’re in.

When I track insider buying, I look at three things.

First, I find the SEC Form 4: Statement of Changes of Beneficial Ownership of Securities, which was created during the Great Depression to curb company insiders’ ability to unfairly profit in the stock market from nonpublic information. The form remains one of the best ways to understand how people in management feel about the future prospects of the company they work for. This document is the first step in determining the strengths and weaknesses of a company from the inside.

If you’re not an insider (a C-level executive, director, or 10% owner of a company), you’ve probably never even seen a Form 4. The document must be filed electronically via the commission’s Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) at SEC.gov within two days of when an insider makes a move within their own company’s stock. Upon the form’s filing, it becomes public record.

Second, I look at the SEC Form 13F: Institutional Investment Manager Holdings Report, which was introduced by Congress in 1975 as an oversight tool to keep tabs on large institutional investors. It’s meant to create transparency so the SEC and public can see the large money moves happening behind Wall Street’s closed doors. The 13F must be filed electronically via the commission’s EDGAR system within 45 days of the end of the calendar quarter by institutional investment managers who control more than $100 million in assets.

Known as the “smart money,” these investment managers are the “whales” within the stock market, including Warren Buffett, Cathie Wood, and Charlie Munger, to name a few. The value of the Form 13F is that it can help you construct a portfolio within the same parameters that “guru” money managers use. All securities purchased within the quarter must be listed, including stocks, bonds, and warrants.

Finally, I look at political disclosure forms. These are the forms filed by our lawmakers. Doing a quick search for Nancy Pelosi, we can see that in 2020, she bought up real estate and call options on everything from Amazon and Apple to Facebook and Microsoft. This is the underground game politicians play.

You may be thinking, OK, OK... but what stocks are they buying right now?

Latest Trades

There’s a ton of information out there, so I spend hours every day sifting through the muck to come up with the best trades for my premium readers.

But because I’m in a giving mood, let me give you a sneak peek of my model portfolio.

Now, I don’t do this often, but these are the latest closed trades:

As you can see, we’re absolutely crushing this market, all based off "insider" information.

Here’s the logic behind Archer Aviation (NYSE: ACHR), one of our latest profitable trades...

I alerted my premium members to the company because it showed all the hallmarks of insider buying.

First, I found that company insiders were buying up shares...

Then I saw that institutions were loading up. Stellantis owns 21.48 million shares, BlackRock owns 12.66 million shares. And according to InvestorPlace, "ARK Invest CEO Cathie Wood has also taken a particular liking to the electric vertical takeoff and landing (eVTOL) company; Wood reported purchasing 2.694 million shares of ACHR stock... ARK Invest also participated in the company’s recent private investment in public equity (PIPE) funding round, along with other names like United Airlines and Boeing."

By the way, Archer stock is up more than 220% so far this year.

We’ve been successfully trading this stock for months, each time with a sizable gain.

So if you want access to the current open positions, just sign up for a risk-free trial of my premium newsletter today.

You won't be disappointed.

Stay frosty,

Alexander Boulden
Editor, Outsider Club

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Check out his editor's page here.

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