When we’re tracking the insiders, why not go to the top of the top?
Why not see who is sinking the most money into his or her own company’s shares out of those who should have the most privileged information of nearly anyone on Wall Street?
I can’t think of a good reason not to, unless of course you don’t like making money…
I’ve said it plenty of times before and I’ll probably end up saying it thousands of times in the future, but when investigating insider transactions, we want to see officers more than directors and 10% owners.
Just by common sense, the company officers—CEOs, CFOs, COOs, etc.—should have access to the most confidential information and data regarding their company.
And, of course, the CEO should be at the top of the officer list in terms of available info and resources.
So I think you will agree that looking at the CEOs around Wall Street is a good place to start when we want to put ourselves in the best position to profit from any hints the insiders may leave us.
And that brings us to Dominion Midstream Partners, LP (DM)…
DM CEO Thomas Farrell just bought 59,900 shares in his own company at $21.00 per share, which is valued at about $1.26 million!
In fact, that purchase is the largest by any CEO in shares of his respective company in the past week or so.
If that doesn’t show confidence, I don’t know what does.
DM owns liquefied natural gas (LNG) import, storage, regasification, and transportation assets. It owns and operates LNG Facility located on the Chesapeake Bay in Lusby, Maryland; and has approximately 136 miles of natural gas pipeline that connects its LNG facility to interstate natural gas pipelines.
This basic materials company just recently closed its Initial Public Offering, or IPO, and it appears that Farrell believes this is just the floor for his company.
Why else would he sink more than $1 million of his own money into DM?
And he wasn’t the only insider to buy shares of this company…
4 other officers and 3 directors bought more than a combined $3.5 million-worth of shares in DM!
Although this company is a bit too young for my indicators to honestly examine it, the confidence from the DM insiders is certainly enough for me to keep this company on my radar going forward.
If my indicators tell me that DM is a good buy at some point down the line, I will be sure to tell readers of my Penny Stock Insider monthly newsletter.
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