Insider Trading Ideas — Soros, Oil and Stansberry

By Travis Johnson, Stock Gumshoe, December 4, 2009


I was puttering around this morning, trying to decide what to share with my favorite folks, the Irregulars today … when I got a question from the very newest Irregular, and decided that her teasers sounded pretty interesting.

This new reader (welcome, D.C.!) sent me a teaser I hadn’t seen yet, for Braden Copeland and Porter Stansberry’s Inside Strategist, along with a sort of hint of a possible future pick for Frank Curzio’s Penny Stock Specialist.  Both of these ideas have a big insider buying connection, so I though they might be worth a look.

Here’s the relevant clue for the Copeland one:

“Braden Copeland’s latest issue of Inside Strategist came out last night. He’s recommending a stock in one of the most beaten-down sectors of the market. When the market turned, shares of this company dropped to nearly zero. They’ve since recovered, but Braden says the stock still has “huge potential” for a double in the next 12-18 months. The sector is on the verge of a dramatic rebound, and judging by the actions of the company’s CEO, we should see gains soon.

“The company’s CEO has been buying stock hand over fist. He recently increased his ownership stake by 120% in only three days. And while Braden was researching this company, one of the greatest investors in history, hedge-fund billionaire George Soros, disclosed a 5% stake in the company. When a company’s CEO and George Soros are buying, it’s time to take notice. To access Braden’s latest report, click here..”

This, friends, is Dana Holding (DAN), the auto parts maker. No surprise that the stock nearly hit zero — it got as low as 19 cents at the March lows this year, and has recovered mightily thanks to the government boost for the auto companies, the rebound in auto sales (however tepid it might still be), and the “freeing up” of the credit markets — if you look at their balance sheet, you’ll see that they look a little more solid than most of the auto parts companies, with far less debt … that’s because they’ve already been through bankruptcy. They came out of Chapter 11 in early 2008 at about $15 a share, right before the you-know-what hit the fan, so now they have very little net debt, and they’ve actually been paying down debt this year.

Soros has been buying up DAN shares with ...

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