The insiders have been very busy this year…with volatility and trade war fears dominating the stock market action, the time for laying out and basking in the sun is in the past for dedicated insiders.
Luckily for us, we can keep enjoying the summer AND keep profiting, simply by copying the insiders’ moves.
While they’re worrying their lives away trying to keep up in this current market, we can quietly take their profits for ourselves.
The insiders spend their time looking at a whole host of different resources, from earnings announcements, to sector and industry rankings, to (my personal favorite) stock charts, and many more.
They also typically have individual sources at various companies, giving them access to private information about a company’s inner workings and future planned moves.
It is the compilation of all this hard-to-get information that allows insiders to make such profitable moves, long before anyone else is paying attention.
While that may seem overwhelming, because the insiders are doing it already we can just use their information to mimic their moves, and essentially bank THEIR profits for ourselves.
There are some pretty solid things we can look for in order to mimic the insiders’ moves: companies that have routinely exceeded earnings expectations, companies that look like they’re outperforming their peers, and companies that have been conducting major acquisitions.
One such company that I’ve been following for a while is Archer-Daniels-Midland Company (ADM), which procures, transports, stores, and merchandises agricultural commodities, products, and ingredients throughout the globe.
ADM ticks many of the boxes that the insiders look for, which probably explains why it’s been such an attractive stock for investors.
The most recent earnings quarters (1st quarter of 2018 and 4th quarter 2017) saw ADM beating expectations during both by a substantial amount, which sent its stock climbing as well.
ADM’s strong and steady performance over the last couple years makes it extremely appealing for even the most risk-averse of investors.
Since 2016 ADM has gone up 63.4%, climbing very steadily without many significant dips down despite overall market activity.
In 2018 alone, ADM has already risen 21.2%, and we all know that 2018 has not been a kind year to the stock market at large, making those gains all the more impressive.
ADM has been hotly debated by analysts as to whether or not it’s been outperforming its peers.
While “outperforming” sounds like it would always be a positive, we usually want to see some reason for that above-par performance, so that we know it’s not all just hot air.
In ADM’s case, we can rest assured that it’s consistently strong performance and savvy business acumen is the reason it has done so well in recent years and not fallen victim to the downturns and pullbacks.
ADM has also ticked the acquisitions box, announcing just last Monday that they’d reached a deal to acquire Rodelle, Inc., a company that originates, processes, and supplies vanilla products.
While that may not seem like an overly exciting acquisition, it allows ADM to greatly expand its (already significant) flavors business, at a cost of approximately $1.8 billion.
ADM reports earnings for the second quarter of 2018 today, so I’d suggest you keep your eye on It, and make any moves sooner rather than later!
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