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Dear Fellow Traveler: Well, the week is over. Thank goodness… for all the blabber and babble about NVIDIA, Japan, and terrible Garrett Baldwin sports franchises… It’s time to wrap it up… Oh, you don’t know about the latter? Well… just a recap, the Buffalo Bills’ Josh Allen just lost to Davis Mills (yes…), the New York Rangers looked like a Pee-Wee hockey team against the Colorado Avalanche last night. The Baltimore Orioles just traded for a guy who will hit 30 home runs and bat .210 (Taylor Ward)… to pair with another guy who will bat .205 and hit 29 home runs (Tyler O’Neill). So… I’m looking for ANYTHING to distract myself from those events… And AMEN! We have insiders buying up stock, Japan engaging in stimulus, and speculation that we might just see some sort of Fed action sooner than later. As I noted this week, insider buying has picked up in recent days. It’s the strongest buyer-to-seller ratio in dollars that we’ve seen since April… and that can be a bit of a contrarian signal after weeks of ongoing weakness. Each morning, I’ve been digging deeper into insider buying activity over at the Insider Buying Report (a side project that I never really announced). Each morning, I review all significant purchases by executives and explain why the deal is likely to happen. In today’s edition, I couldn’t help but notice two serious buys that grabbed my attention and reminded me why insider buying is so important… Want to know what they are? Good… Insider Buy No. 1: Energy TransferKelcey Warren is an American hero. The CEO and Chairman of pipeline giant Energy Transfer is still running strong at 70 years old (Happy Birthday on November 9) and keeps backing up the truck for his own stock. He could be hanging out down in Texas at Jerry World and watching football… maybe doing some deep-sea fishing… But he’s just running the best pipeline company in the world and buying his own stock hand over fist. Energy Transfer has more than 125,000 miles of pipeline across the United States, but none more important than the tracks that run through Texas, Louisiana, and Mississippi.
A lot of people have viewed the company as a backbone of U.S. natural gas shipping… but there’s an added variable. Want to know who is going down to the Gulf Coast now to create massive data center projects? Silicon Valley giants like Meta (Louisiana) and Amazon (Mississippi). Natural gas isn’t the bridge fuel of the United States. It’s the fuel… and AI and returning manufacturing is looking to this region of the country. Well… ET has the pipelines. Now, back to Kelcey Warren. He’s not just been buying the stock at $16.88. He’s been buying it for five years. This is one of the largest executive buying patterns of the 2020s. He’s put over $500 million into the stock.
And if Warren is buying $33 million this week… I’m comfortable being long this position for even longer… Insider Buy No. 2: Tortoise Energy Infrastructure (TYG)Yeah, I like this one too. Why own one pipeline when you can own many… TYG is a closed-end fund that has its hands everywhere. And a director just bought over $100,000 in the stock… It’s the first insider purchase in over a year.
This fund pays nearly a 10% yield and owns the whole dang lot of insider names. Williams… Energy Transfer… MPLX… Targa… Evergy…
It’s THE MIDSTREAM. And we know… there’s always money in the midstream. In addition, the closed-end fund is trading at a slight discount to its net-asset value, and could… eventually… convert into an ETF to make its value whole.
At the end of the day, however, you’re buying this for the yield and to gain access to the new backbone of surging electricity demand… This is a clean way to do so without having to do old-school securities analysis or worry about K-1s at tax time. Hey… Did You KnowJust letting you know that my Insider letter has been active for a solid two years, but I never really bother people about it. But… hey… if you’re interested in this letter, it’s over at a different Substack called The Insider Buying Report. Each morning, I put together a full recap of deals from the last 24 hours and a few points on why I believe each deal happened. Insider buying was my primary quantitative focus while I was at the University of Indiana’s Kelley School of Business. I’ve long argued that no one knows the business better than the CEO and no one knows the balance sheet better than the CFO. It doesn’t really seem that there is another alternative on Substack that covers the topic… So, this letter keeps readers up to date on who is buying their own stock and why… It’s research that I’m doing… so I might as well make it available. If you’re interested… I’ll make you an offer today… Since it’s Black Friday week, I’m giving readers a chance to get in on the ground floor… Typical services that track insider buys run around $250 to $400 a year… and they provide no analysis whatsoever… In addition, we’ll be releasing our latest portfolio and trade recommendations this evening… Lock in that price for every year that you’re a member and get even more insight and analysis on one of the most important anomalies in all of finance… Thank you for your consideration. Stay positive, Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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