I took some of the stocks that performed really well this week and ran them through my long term opportunity identification algorithm. For this email, I want to alert you insiders to a possible VERY LONG term play – REZI. The long term to me is like 3-4 months, so the very long term is more like 4-6 months.
I took the buys and sells of the insiders vs the stock price and plotted them on the chart here:
Immediately, you notice the cluster of buys right before the 2021 runup. Then you also notice that the sales almost all took place at high points. Great trading insiders! You didn’t lose one. Now, these insiders are buying again. I think this may take a while to play out if it does. Like look at around 2019 – I would have looked kind of smart a month later, like a total idiot 3 months later, and then a genius a year later. I also notice that the 2019 pattern is very similar to now.
Let’s break this down:
What does REZI do? They sell products for controlling temperature within homes, so are closely tied to the real estate market.
That buy at the end of 2024 before that v shaped dip just a couple months ago was just before earnings. Earnings were strong for REZI, and it immediately popped back up, to where we see more insiders buying now. We can see this director, Andrew C Teich has loaded up on 1.5 million dollars worth of stock, constituting a 30% increase in his holdings (quite significant). The company’s revenues are also up 20% year over year, so this could also just be an affirmation of the company’s strong economic outlook.
Not financial advice, this is only educational.
