| Most insiders would take profits after a 100% move in two weeks. Not Galkin. He's adding to his position at prices that would make most traders nervous. Think about that psychology for a second – you've already seen massive gains, and you're still loading up? That tells me this story isn't over. When I track insider transactions every morning, I'm looking for this exact pattern: sustained conviction even after big moves. Because that's when you know someone sees something the market hasn't priced in yet. Why The Analysts Got It Wrong Two weeks ago, the "smart money" was calling NEGG pure speculation. Fundamental analysis said the valuation made no sense. Traditional metrics suggested this was a bubble waiting to pop. Meanwhile, Galkin – who made serious money during the 2021 GameStop rally and currently sits on a $200+ million JetBlue position – was loading up with real money. The analysts had spreadsheets. Galkin had information. Guess who was right? The Low Float Amplified Everything Here's what made this move so explosive: NEGG only has 19.4 million shares in the float. And Galkin? He owns 3.33 million of them. That means one insider controls over 17% of all tradeable shares. When someone with that kind of ownership keeps buying, every share matters. In a thin float like this, insider buying doesn't just signal confidence – it physically removes shares from circulation. The Track Record That Matters Galkin's not some random trader throwing money around. His continued buying after a double tells me he knows something about NEGG's future that the rest of us don't. Given his track record, I'm betting he's seeing around corners again. The Pattern Recognition Game This reminds me of SNOW back in June 2024. While everyone panicked about Berkshire dumping shares, smart insiders were loading up. That insider buying gave us conviction for those January 2026 LEAPS spreads that crushed it when earnings hit. Same playbook, different stock. The market can stay irrational longer than most people can stay solvent, but when insiders show sustained conviction, they're usually seeing around corners. Your Research Framework Next time you're evaluating any position, ask yourself: - What are insiders doing with their own money?
- Are they making token purchases or betting the farm?
- Are they still buying after big moves?
Because here's the thing – I'm not telling you to chase NEGG at these levels. What I'm telling you is to understand how insider conviction validates or invalidates your thesis. When someone with inside information keeps buying after a 100% move, that's not speculation anymore. That's conviction based on information you don't have. Your Action Plan In the War Room, we track these signals not to chase every move, but to understand when the people with the best information are positioning for something bigger. NEGG doubled because the setup was perfect: insider conviction, low float dynamics, and analysts completely missing the story. But Galkin's continued buying suggests this might just be the beginning. The market rewarded conviction over consensus. And sometimes, that's exactly how the biggest moves start. | 
No comments:
Post a Comment