Speaker 1: You know, sometimes we'll see a stock take a big
hit and insider start buying in, and it's like, well
they know what their company's were if they know if
it's an overreactions, but they didn't do that, and then
so it sits down here on the bottom of the
chart for six months. Suddenly two, three, four insiders start
piling in. You know, we bought it, and looks in
September the stock is doubled. I mean it's October. You know,
it's been a month now. We we're of about fifty
something percentance where we saw it. But you know, this
is a stock that went from twenty dollars to two.
It has been sitting there on the bottom of the
chart for six months. Nobody's watching this thing, and you'd
be a fool to buy the stock unless you had
some kind of indication that things were improving. And I
think the insider activity and they're buying is the best
indicator I've ever found to let you know it might
be tied and things starts starting around.
Speaker 2: You were listening to Carrie let'sa's financial survival network where
you get valuable information you just can't find anywhere else
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Speaker 3: Ed Welcome you are listening to and watching the Financial
Survival Network. I'm your host, Carrie Lutz. We got Ross
Givens back with us today. Ross's your service. I heard
about it, had you on the show. I immediately signed
up and that was on My first trade was May
twenty ninth. Since that point, I am up twenty three percent,
down a little bit today around October twenty first, it's Monday.
Doesn't look like it's a crash day, but the market's
down a little bit, which to be expected. It's been
up sure so strongly. But I told you pre call.
I've been at this a long time. I've interviewed a
zillion market guruz. Yes, there are systems that will work,
you know, kind of modified by and hold right right
the Dogs of the Dow. I was a big fan
of the Dogs of the Dow, the AAII index that
was great for a while. But this seems to work consistently.
I'm looking at my portfolio now stock I've mentioned it
on the show before Dominion energy utility in Northern Virginia.
It basically is an indirect play on AI because all
these data centers, they could take five hundred megawatts, which
is like enough to power a small city. You know,
three months after you recommended that stock, there was an
article that I caught that said that basically they're up
to capacity. They can't if you want to open a
data center there. And understand, Northern Virginia is the epicenter
of all the data operations.
Speaker 1: And yeah, pretty much a monopoly on the power utility
there more LAFE.
Speaker 3: Yeah, yes, and it's up fifteen per It's actually one
of the slower performers, but it's paying a dividend. I'm
up over sixteen percent since since May twenty ninth. I mean, yeah,
looking at less than five months.
Speaker 1: Yeah, no, listen, I love hearing you're making some money.
And by the way, to address the elephant in the room,
I apologize. I've got my analyst here with me today.
Her mother had to run out of town and she
woke up with one hundred and two degree fever. So
we just moved him in the home office. And you
see empty bookshelves behind me. So I'm playing dad and
stock trader today. But yeah, Carrie, listen, I love hearing
your up body. You know, we've been doing this since
twenty seventeen, and you know you're intelligent. You've been markets
a long time. You know, nothing works every day, every week,
every month, right, But you know we've never had a
down year. That includes a twenty twenty two beer market.
I think we returned thirty percent. We've had years like
twenty twenty we made three hundred something percent. That's just
a stock coot fold just you know, twenty percent per
so it actually works. The limitations we talked about before
the coal and I think the reason because the question
and I guess, well, why aren't all the hedge funt
is why didn't you know the big guys doing this?
Is because there's capacity limitations. You know, a lot of
these stops were recommending are small cap stocks, you know,
and for people who don't know, what we're doing is
simply tracking insider trading activity to look for what I
believe we are opportunistic buying. So for example, we had
a little biotech company in the middle of stage two
drug trials breaking in like forty cents a share. Tick
her simple c at x's perspective therapeutics. Then suddenly in
December we had like the CEO, the CFO, half the boarder, directors, VPS,
the chief medical officer all suddenly buying this stock up
hand over fist for the first time in years. And
so it's like maybe they know something, and oftentimes they do.
In that case, droke trials are going great to stop
of three hundred something percent the next few months. You know,
anmeulyks which we bought right at thirty days ago fifty
six percent. And we have some that just don't go
at where sometimes they were all buying and it was
kind of coincidental. Sometimes you know that we'll have one
to go down a little bit. But we we tend
to not have really big losses and and and the
reason is well too. I mean, one we use stop losses.
We don't risk more than about fifteen percent on these
on average. But you know, one of the odds if
your company's doing that, or leaf earnings are bad, if
sales are bad, if it you know, the markeers, I
like what you say, why would the CEO and the
CFO and the board always people be buying, you know,
with their own money it's it's just very rare. And
so by kind of fishing out of a stock on
you really you're opening yourself up to own the stocks
that the highest likelihood of delivering, as you said, above
earnings above expectation, the earnings or great drug trials, or
you know the fact that all their splots are filled
up for energy production the next two years. And so
you know, we've been doing this for a while and
I think our portfolio is of something like nineteen hundred percent.
Compound US is twenty seventeen. But yeah, listen, I love
hearing your experience, and I hope we open in more
people eyes up to this. You know why, I thing
some big loophole for investors.
Speaker 3: Hey, so talking about ameliks, That one I found fascinating
because the stock got I think they're making a treatment
for Luke Garrick's disease. It got rushed through, the studies
weren't complete. Then the study comes out, the stock goes
down ninety percent, and then all of a sudden, the
insiders start buying.
Speaker 1: Oh, I mean before we bought it, yeah, yeah, before
we Yeah, that stock was a twenty dollars stock in March,
And I mean overnight away from twenty bucks to like four.
When that happened, it had just stayed there March, April, May, June, July, August.
It was trading two three bucks a year. You know,
sometimes we'll see a stock take a big hit and
insider start buying in, and it's like, well, they know
what their companies were. I they know if it's an overreactions,
but they didn't do that. And then so it sits
down here on the bottom of the chart for six months.
Suddenly two three four insiders start piling in. You know,
we bought it, and looks in September the stock is doubled.
I mean it's October. Yeah, it's been a month now.
We were about fifty something percentince where we saw it.
But you know, this is a stock that went from
twenty dollars to two. It has been sitting there on
the bottom of the chart for six months. Nobody's watching
this thing, and you'd be a fool to buy the
stock unless you had some kind of indication things were improving.
And I think the insider activity and they're buying is
the best indicator I've ever found to let you know
it might be time and things starts.
Speaker 3: Turning around and you sent out an alert after it's
twenty five percent or so, it went up cell half,
which I did. You locked in that profit, so I'm
not going to lose any money my worst.
Speaker 1: That's right.
Speaker 3: I can get out at what I paid if it
starts sinking again. If I get out for what I paid,
I still made twelve and a half percent. Yeah, very
short period of time. You do that enough times, all
of a sudden, before you know it, your part portfolio
is really increasing. And you know, I'm not talking my
book here. I don't recommend stock. I'm not in a
financial planner. I'm not allowed to. I'm just recounting the
experience from what are your recommendations where it really it
really proved true and maybe later this week it'll go
even higher. There's something going on with that stock we
don't know but yet. But yeah, that's the thing. All
we do is share our research. Know it's up to
our people to u are up to our members and
decide what they want to do. But you've seen we
send pretty in depth research on these picks, and we
don't just give them a ticker.
Speaker 1: It's like here's the company, here's they do. Here insiders
your buy and we look for the common things that
led to the biggest move. So if one insider is buying,
that's good, two, three, four, eight of them, that's substantial.
You know, do they buy every month, every quarter? Or
is this rare? You know, if it's a guy who
makes ten million bucks a year putting fifty grand, you know,
Lottie dov, it's a guy who makes five hundred grand
putting two million, Well, now you have my attention. So
we really just use a ton of common sense to
try to find these opportunities. And you know, as you said,
these are small stocks, they can be votal. That's that's
you know, both good and bad. These are the kind
of stocks that can go up fifty percent in a month.
They can cut the other way. But again it's it's
it's rare we see that in the midst of insider buying.
And so nearly what we see and I've been doing
this is twenty seventeen, so I think I speak pretty
well on it. On average. You know, it's it's usually
at every five stocks, maybe one or two get a
small you know, we're out even or ten percent down
a couple we make our twenty twenty five percent, and
then usually we'll have one what I consider, you know,
a home run trade every four or five that's a
fifty one hundred. I mean, we've had some go up
nineteen hundred percent, and so you sprinkle a couple of
those on even an average portfolio and you've got a
heck of return. So the twenty five percent of rual
we put in a while back, it's like, look, it's
great being up thirty forty percent in a month, but
it really bites when it goes back down. Said, look,
let's let's take the base it. Let's take half of it.
Let's de risk the trade. That way, we can leave
our stop at break even, give it room to work.
And I'd rather have half of it on a thousand
percent ride than none of it. So it's like, look,
put some dollars in your pocket and give it some
room to you know, let's let's let's see if they're
on something huge or it's going to be you know,
a single or a double you know. I mean, we
had stocks like Life md LFMD we bought I think
in twenty twenty three. Well, it turns out they're like
an online pharmacy for the weight loss drums for the
ozenpic and the Goovi and like knowing had any idea
how big those were when the insider started buying. But
you know they're on the inside, right, they're getting sales
reports every week and they're like, our sales are doubling
and tripling each quarter, Like, wait, do they see this
earning report? So you know we get in early. You know,
we went up two three hundred percent in the twelve
months we owned it. So again, they're not all going
to do that, but you know, you can risk fifteen
percent get some big moves like this, and you know
even one out of ten that doesn't double a triple
of quadruple. Uh. You know, you really got to do
a lot of things wrong enough to make money. Yeah.
Speaker 3: One thing you mentioned in the describing what you do
is that these insiders got to hold for six months.
So that means this isn't just going to be a
minor jump. It's that they believe that it has some
staying power. Well, that's right. Yeah, what you're referring to
is those these short swing rules. So one of the
things the sec DOT did that's back in the ten
B five one rule to say, look all right, guys,
we're gonna let you trade. We know you're They basically said,
we know you're going to buy once inside it for measure.
Speaker 1: No, you're too clever, not can get around it. But
you're not gonna pump indump. You're not gonna buy on Tuesday.
Report a big number Wednesday sell thursdays that if you buy,
you're holding for six months. If you still a day
before that, we're taking the profits. So well, that does
is you properly pointed out? Is it gets you those stocks?
It like they have staying power, the ones that are
like to to go up and stay up. So and
that's why, you know, our average holding time was probably
three to four months on these a couple we've held
for a couple of years.
Speaker 3: Uh. But yeah, it's not you know, it's not day trading.
So sure, Actually you have a better chance of making
money than the insiders because that thing could.
Speaker 1: Go up and then go down. Yeah.
Speaker 3: Just yeah, and we get out most are the top
than the insiders.
Speaker 1: Ken. Yeah, it's happened many times. Sure, So that's that's
like a cool thing. Se know, there's kind of two
reasons they buy. I started me to cut you off.
Jerry I'm just going to say there's there's you know,
two main scenarios we see. One is a big drop
stock got too cheap, insiders from buying, so the one
we talked about, it's a great example of that. Those
can be difficult because you've got to try to read
between the lines. Guard you know, these guys, are they
just adding shares on they're going to hold for twenty years?
Is it because our time frame is difference in theirs.
The other situation is, look, this stock is is near
fifty two week highs. It's it's it's it's you know,
already up fifty percent this month. But why they buying now?
And that's usually because the stock is doing or the
company's doing much better to market relaunch, So it's generally
either a turnaround or trying to get a bottom for
a pre breakout where news is yet to come out.
But uh, you know, both pay the same one, both
money spends the same carry.
Speaker 3: And then you got these perfect inside traders who always
make money on every stock they're and the insider in
and those are just like they're just given these.
Speaker 1: Yeah it's not guaranteed, but we do focus very heavily
on their track record. You know, I like to see
first time. I love to see somebody's been at that
company five years, never bought, never suddenly, mind two or
three times, that's good. If they've bought before. I need
to see a tracker of success. You know, most these
people are NBA level top you know, se left C suite,
smart people, but it doesn't mean they're great stock triggers.
If I go back and all this guy been a
big bi well last time I didn't stock with down
fifty percent and this, you know, we're not going to
take it. But if you just like if you're picking
a portfolio manager, right, it's not a guarantee, but if
you're going to pick, you know, somebody a twenty year
track record of market return which you got have twenty
year losing returns, you know, what are you going to
do better with? So we do focus on the insiders,
you're right, that have perfect track records, that have like, look,
every time you've bought it was near the lower right
before a big move, and so if they have a
history of beating the market, it's just going to improve
your odds. It should A bunch of little things we're
stacking up and at the end, of the day. You know,
you really put the odds in your favor.
Speaker 3: Well, one thing I haven't tried yet is doing the
options on that because I figured, you know, let me
see the stocks first. How that's yours? The options? I mean,
when I see your sell half, they've often gone up
one hundred and one hundred and fifty percent.
Speaker 1: Oh, is there anything any.
Speaker 3: Advice you can give newbie options traders to not get
cut in like the whipsaw of the action, the volatility
and these options.
Speaker 1: Well, the first thing I tell people when it comes
to the options we recommend is like, don't use the
stop loss. I mean, you really can't use to stop loss,
especially on some dollar stocks. They're a little bit spready,
you know, maybe a dollar by a dollar half. It's
not like an Apple call. And so it's like, look,
if you were going to put ten grand in the
stock and risk ten percent to one thousand dollars, we'll
buy one thousand dollars with a call option. You know,
don't put ten grand in the call option. I'm gona
use it twenty five percent. Stop. You're gonna get tagged out.
Just the spreads are wide and it's going to tag you.
So I tend to bring it way down. But you know,
our our our average option, we look three or six
months out, usually that thirty forty delta range, and if
that stock goes up twenty percent the first month or two,
that option almost always is at least a double. So
usually we double those sell half you've got all your
money back whatever, you sell the rest of them on
a freebie. And so you know, if I'm targeting option
A four or five six months out and you've you
got all your money back in month too, well, now
you've got all the upside essentially for free. And then
once it gets in the money, you don't have that
time decay risks. So we try to sell them you
thirty thirty days out or less. But yeah, I mean,
the biggest advice for options, I know it's not sexy
to say, is just you know, you can't use a
stop bloss on. Mostly you just put the money and
you will under risk. Just know it's it's going to
go to zero or down eighty percent, or you're going
to double triple your money.
Speaker 3: Yeah, I'm gonna I'm gonna dabble in it a little bit,
I think, you know, just getting the brokers as some
of them are soon annoying about approving your account for
options tradings nowadays because really sins, they've been sued so
many times they just don't want to take the risk anymore.
Speaker 1: All the Robin Hoood kids are ruining for the rest
of us. Yeah.
Speaker 3: So so when you're like, it's tempting though, when you
see an option and it goes up one hundred percent
to not just bail on the position and take the
one hundred percent profit.
Speaker 1: Though, is it? Yeah? Yeah, look, there's nothing wrong with that.
We got people that we got people that do that.
I mean, we there's really aw's there's no perfect answer
to that. I mean there's no to say, here's a
by the low and sell the high and everything between.
All we can do is does a doctor Okay, I guess.
Speaker 3: All right, Well we'll wrap up because your daughter there
as we get sorry about that.
Speaker 1: Hey, that's okay, Just tell us again where we find you.
I'll have a link in the show notes. Yeah, the
link below. We've got. We do a training session usually
once a month or so, so sit have a link
to that. I think the last one is up able man,
and you've been actually watching but uh yeah, little trays
a you got calm or cook that link below to
take you right to our training and I walk you
through it now a lot of presentation. We show you
what we look through and what you look out for,
how the strategy works, and you know, I think people's
eyes generally get open and quickly.
Speaker 3: All right, well I love it, keep doing it, and
you know it seems like also just one final point,
there's no shortage of these companies that are constantly popping
up on your screen.
Speaker 1: Yeah, look, there's seven thousand publicly traded companies. I mean,
we're not we're not recommending to Google and Amazon and Microsoft.
There's no edge there. You got five billion people competing
with that, you know. But but it's Analyks Pharmaceuticals or
Cantloop or at Mistiltration, you know, LAMB Western. These are
off the radar stocks, and these are these are ones
where there's a much bigger opportunity out there for the
average investor. All right, hey, well appreciate you coming back on.
Speaker 3: I'm glad it's good to share my success with you,
and thank you personally. And if you've got a question
for Ross myself, shoot me an emailkl at Carrie LUTs
dot com. The link to a free webinar from Ross
is in the show. That's this interview on Financial Survival
Network dot com.
Speaker 1: Ross.
Speaker 3: Hopefully I'll talk to you in a few months and
the games will be even bigger.
Speaker 1: Yeah. Wait, thanks Gerry, good to see it.
Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
solution to today's trying times. For the latest, go to
Financial Survivalnetwork dot com. Financial Survival Network now more than ever,