S/L: Insider Cluster Buy in GME

September 30, 2019

The Insider Report

Trade Alert

Those watching the markets closely have noticed a shift in recent months.

Names like Netflix and Amazon have fallen while Procter & Gamble, Home Depot, and other blue chips have pushed higher.

The trend is clear – investors are moving out of growth stocks and into value.

And insiders are flooding into the deep discount opportunity in GameStop (GME).

The once-dominant video game retailer has been pummeled in recent years.

After reaching a high of $57 in 2013, GME made a new all-time low last month at $3.15.

But many believe the stock is oversold.

And no one is more convinced of that fact than GameStop corporate insiders.

Four directors bought five times this month for a combined investment of almost half a million dollars.

This cluster buy is even more significant because of how rarely GameStop executives buy stock.

These are the first purchases by anyone at the company in more than three years.

Make no mistake – GameStop is not a growth stock.

Revenue has been flat for several years and is not expected to increase any time soon.

But the stock has been oversold.

It’s simply too cheap.

The company is expected to earn $1.03/share next year, giving it a price/earnings ratio of just 5.

And insiders are calling the bottom.

Shares are up 70% in the last three weeks and steadily pushing higher.

We suggest taking a position alongside GME insiders to take advantage of the upward trend.

Action to Take:  Buy GameStop (GME) stock at the market. Work an end-of-day stop at $4.50.

Speculators may consider the GME Apr20 $6 call options (.GME200417C6).

Use a buy limit order near the middle of the bid/ask spread.

If you have questions, feel free to shoot me an email: support@hubertsenters.com.

All the Best,

Ross Givens

Editor, The Insider Report