Home » sin stocks » Sin Stocks Report: Summer Of Sin #18 — Do Any Insiders Own Sin Stocks?

Sin Stocks
We’ve been looking at who owns sin stocks, because that tells us who else is paying attention to sin stocks and gives us a clue about whether we should. So far, we’ve looked at external investors… but what about insiders? Do any insiders own sin stocks?

Do Any Insiders Own Sin Stocks?

An insider is someone with access to a company’s information, often a decision-maker at a company. They know how the company runs, so if they own stocks, they have some serious skin in the game, and knowing what they are doing with their portfolio can give you a clue about what might happen with the company and the stock.

Most people think that investing as an insider is illegal, but that’s not true. It’s perfectly legal to own stock as an insider. There are laws, however, the govern when you can buy and sell stock and what you have to do when you make a transaction. In the US, insiders have to file a special report with the SEC whenever they transact on the stocks in which they are insiders of.

And THAT information is very useful to investors who are tracking what others are doing with the stock. For example, what information would you assume if suddenly all the the directors and executives of a company started buying more stock? Or what if they started selling all their holdings?

The SEC provides us with a very useful tool to find out which insiders are buying and selling stocks.

Simply go to https://www.sec.gov/edgar/searchedgar/companysearch.html and type in the company name of the particular sin stock you are curious about.

When the search results display, click the link that says “get insider transactions for this issuer.

Boom. There are your results of insiders who have bought and sold the company stock lately, including who they are, the date of the transaction, and what they do at the company.

If you want to know whether they’ve bought or sold, you just have to click on the filing (and then click again on the actual document, and THEN click to view the document — yeah, there’s a lot of clicking). But this is great information to know.

For example, if you search for Molson Coors (TAP), you’ll find that there were a lot of transactions that took place on May 18, 2017…

  • COORS PETER H (director, 10 percent owner, officer: Chief Customer Relations Off, other: Chairman of the Board)
  • HOBBS FRANKLIN W IV (director)
  • HERINGTON CHARLES M (director)
  • VACHON LOUIS (director)
  • Molson Andrew Thomas (director)
  • Riley H Sanford (director)
  • Eaton Roger G. (director)
  • Napier Iain J G (director)
  • Tough Douglas D. (director)
  • Molson Geoffrey E. (director, other: Vice Chairman of the Board)
  • FergusonMchugh MaryLynn (director)
  • Coors Peter Joseph (director)
  • DeVita Betty K (director)

And when we click through all those damn clicks, we learn that Peter Coors received acquired 1536 Class B Common Stock shares for a price of $0.00 (because they were “a restricted stock unit grant under the Company’s Director Compensation Program, which shall vest in full on May 18, 2020”).

You can do this for any sin stock to discover what the insiders and decision-makers are doing, and then to use that information to determine how it should impact whether you buy more, hold what you have, or sell.

DISCLAIMER

Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.