🟨🤑 Top CEO Trades from this Week (2022-03-03)

Hello!

Let’s get into the top CEO trades from this week!

Top Yellowbrick Trades of the Week

As previous readers will know, our main project is Yellowbrick, a social investing platform that helps you find new trade ideas by showing you the best, verified trades from other investors right when they happen. You can see a feed of the best trades from other users on Yellowbrick alongside the public profiles we curate like Nancy Pelosi and the CEOWatcher account.

Here are a few of the top trades from this week

1. A quick few hundred dollar gain betting that SNOW stockholders would buy up the post-earnings dip

2. A bet on Topgolf and golf’s popularity increasing due to the Netflix show

3. A good risk/reward opportunity at Marqeta

Join Yellowbrick to find your next trade idea by seeing a feed of the top trades!

Top CEO Trades of the Week

Reminder: you can read about how CEO Watcher works and how we calculate returns and win rates here

Bradley Lee Soultz- CEO at (link)

The CEO at WSC just bought the stock for the 4th time since May of 2022 (and 5th time overall). As you can see below, he has pretty great 90-day returns on his previous purchases.

Previous buys:

• 2019-03-21 (+31% 90-day returns)

• 2022-05-09 (+24% 90-day returns)

• 2022-05-18 (+26% 90-day returns)

• 2022-11-07 (+3% 90-day returns)

Returns and Win Rate

Overall: 130% returns with a 100% win rate (4/4 trades)

1-year: -30% returns with a 0% win rate (0/1 trades)

90-day: 22% returns with a 100% win rate (4/4 trades)

Purchase Data

Total Amount Purchased: $252,325

Purchase Price: $50.47

Current Price: $52.26 (+3.5%)

Rating

Rating: 8

Why: The three things keeping this score from being higher are: not a ton of history, this purchase size is right in the middle of his previous four purchases (it’s not abnormally large), and the stock is already up 30% in the last 6 months and 5% this year (I tend to like stocks that are way down that a CEO starts to buy up). However, this still gets a pretty strong score due to the CEO’s success on his 90-day returns.

Eugene Berkholder - Director at (link)

Eugene made his 13th purchase of FMAO and his first since September of last year. It’s also his largest purchase since 2015 and 3rd largest purchase ever (granted, it’s still only $52k).

Returns and Win Rate

Overall: 83% average returns with a 69% win rate (9/13 trades were profitable)

1-year: 93% returns one year after purchasing with an 88% win rate (8/9 trades)

90-day: 46% returns with a 66% win rate (8/12 trades)

Purchase Data

Total Amount Purchased: $51,900

Purchase Price: $25.95

Current Price: $25.47

Rating

Rating: 8/10

Why: The stock is down 25% in the last year and this director has really good one-year returns. The main downside is that his most recent trades haven’t been great (he bought 3 times in August/September of 2022 that are down 12%, 5%, and 2%) which will probably pull down his 1-year returns unless the stock takes off in the next 6 months. However, this also means that this is his 4th purchase in the last 6 months with the stock under $30, so he appears to believe this is a good price.

Thomas Schuetz - CEO at CMPX 0.00 (link)

Note: we’ve written about this guy a few times already, but he just keeps buying shares

Thomas has been gobbling up shares since May of 2022. This is his 21st purchase of CMPX and 20 of them have happened since May of 2022. Because of this, we don’t have a ton of long-term history on him. However, his 90-day returns have been great and he just started repurchasing the stock after pausing from the end of September til now. The stock is also down over 25% in the last 2 months.

CMPX is a therapeutics company and it sounds like their focus right now is their biliary tract cancer candidate, CTX-009. It has had some promising results through 2022 (which pushed the price from $1.50 to almost $5.50 at the end of last year before it dropped back down to around $4), but it doesn’t sound like the final results will come until January 2024.

Returns and Win Rate

Overall: 50% returns with an 86% win rate (19/22 trades)

1-year: 62% returns with an100% win rate (2/2 trades)

90-day: 46% returns with a 94% win rate (17/18 trades)

Purchase Data

Total Amount Purchased: $79,600

Purchase Price: $3.98

Current Price: $3.70 (-7%)

Rating

Rating: 6/10

Why: These pharma/bio/therapeutic companies are always risky as they are dependent on the results of their clinical trials/FDA approvals, but they also tend to offer the highest upside and give us clear catalysts to keep an eye on. In this case, the catalyst is continued good news on their CMPX trials and good results when the trial finishes in January of next year. The inherent riskiness of this space and the fact that nearly all of his purchases have happened within the last year is why I can’t go above a 6 here, but if you follow this space, I’d definitely keep an eye on this.

Mubadala Investment Co - 10% Owner at (link)

One of the largest holders of Recursion Pharmaceuticals has been buying up a TON of stock over the last two months. Starting on December 23, they have bought up over $12M worth of the stock at an average price of ~$7.70.

It looks like they aren’t expecting any big results from its trials until H2 of 2024, but they are one of the handful of pharma companies hoping to improve drug discovery using AI. That means there is a very high chance that the company is garbage, but it may also catch a tailwind on the AI hype cycle over the next couple of years.

Returns and Win Rate

Overall: 50% average returns with an 80% win rate (4/5 trades were profitable)

1-year: 47% returns one year after purchasing with an 80% win rate (4/5 trades)

90-day: 8% returns with a 40% win rate (2/5 trades - the only winners were his other two COP trades)

Purchase Data

Total Amount Purchased: $12,375,435

Purchase Price: $7.70

Current Price: $8.30

Rating

Rating: 4/10

Why: There just isn’t any history here, so it’s impossible to be confident. However, this fund has been gobbling up a ton of shares in RXRX, so it may be worth a deeper look or taking a small position (especially if you pay attention to this space).

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Have a great weekend!

Connor V.