When an insider decides to make a purchase in its own company, it might be worth taking notice of.
Insider activity can often lead to profits, so why not follow them right to the money?
And when I saw this insider situation, I knew I had to drop everything and investigate it. And I’m so happy I did…
The reason I decided to make this situation my top priority is because of the rarity of it. This sort of insider buying doesn’t occur very often, so I wanted to find out why it was happening.
The company at the heart of this whole mystery is Republic Services, Inc. (RSG). The interesting thing about RSG is that insiders have bought stock in this company every day since June 12…
But it has been just ONE insider!
The insider in question, Cascade Investment LLC, is a 10% owner of RSG. It holds over 100,000,000 shares of RSG’s stock, which it has apparently racked up by purchasing it every day!
Just one of Cascade Investment’s recent purchases of RSG stock totaled an estimated value of over $6.3 million!
But why?
RSG provides non-hazardous solid waste collection, transfer, and recycling and disposal services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico.
RSG has decent, not great, financials in terms of gross annual and quarterly profit but check out the chart for RSG from Stockcharts.com…
The price of RSG has been steadily increasing since March or April of this year, and I think much of that can be attributed to the insider buying of Cascade Investment.
This insider appears to be pushing the price upward, and buying more to continue adding fuel to the fire…
I also don’t see any reason why Cascade Investment would stop buying RSG stock after it has consistently purchased some stock in this company every day for months.
And I wouldn’t expect it to stop when the price of RSG keeps climbing higher and higher.
But the important issue at hand is whether or not we should be interested in RSG. The problem with this situation is that this heavy buying is coming from just one insider.
While the numbers are staggering, it’s hard to trust this buying because more insiders aren’t joining in, and because this insider isn’t an officer or director.
For now, I will continue to watch RSG to see if the insiders give me a better reason to act on it.
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