Yesterday, Nelson Peltz’s Trian Fund Management filed a 13D revealing the purchase of an additional 16 million shares of the fast food chain, Wendy's $WEN.
This brings Trian’s total interest to just shy of 20%.
Buried in the footnotes of the filing, Trian also disclosed that it advised the board of directors it’s exploring a potential transaction.
The largest insider transaction on today’s list is a Form 4 filing by Winder Investment, which reported an additional $1.8 million purchase in Sensient Technologies $SXT.
The firm now owns more than 6 million shares, representing a 12.4% ownership interest in the specialty chemicals stock.
We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but NOT both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.
We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
We recently decided to expand our universe to include some mid-caps…
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
The way we did this is simple…
To make the cut for our new Minor Leaguers list, a company must have a market cap between $1 and $4B.
ValueAct Partners revealed an additional purchase of roughly $10 million in Insight Enterprises $NSIT, as the activist hedge fund continues to build a position in the enterprise cloud company.
The firm now owns more than 3.8 million shares for a total ownership interest of just under 11%.
The average stock listed on the NYSE is down over 34% off its highs.
The new 52-week highs list peaked in February of last year - that was over 15 months ago!
We've now seen more stocks hitting new lows than new highs for the most consecutive weeks since the Great Financial Crisis.
The Technology, Communications and Consumer Discretionary sectors combined make up almost half of the stocks in the entire S&P500. They're each now down 26%, 33% and 35%, respectively.
In fact, almost half the stocks on the Nasdaq have seen their prices get cut in half.
And people keep asking me if we're going into a bear market?
What the hell do you call that?
If you define all that as a bull market, then I think you need to check yourself into a mental hospital.
Our Hall of Famers list is composed of the 150 largest US-based stocks.
These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.
It has all the big names and more.
It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that, which you can check out here.
The Hall of Famers is simple.
We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.
Let’s dive right in and check out what these big boys are up to.
The largest insider transaction on today's Hot List is a Form 4 filing by the co-founder and director of Coinbase Global $COIN, Fred Ehrsam, who reported an additional $25 million purchase of his own stock.
