Seven Lakes Weekly Summary

Hello Seven Lakers,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was substantial, with ~423 transactions taking place

Semiconductors & Health Care were the most invested sectors

If you want to receive daily updates on politicians trades, click here

🏦 2/ US Politicians potential insider trading: Tina Smith buying ahead of pharma stock’s rally

Tactile Systems Technologies Inc (TCMD:US) appears as a formidable presence in the market with a substantial Market Cap of $316.4 million.

Established in 1995, this company is engaged in the development and distribution of medical devices tailored for the management of chronic illnesses.

Notably, Tactile Systems witnessed a notable fluctuation in its stock value in recent times, experiencing a surge of 19.58% over the last five days and concluding at $13.46 on November 22.

This surge in stock value coincided with a trade reported by Senator Tina Smith, who has roots in the same state as Tactile Systems and holds roles in multiple Senate Committees, including Health, Education, Labor & Pensions.

On November 8, Senator Smith's disclosure revealed a financial commitment ranging from $100,000 to $250,000 in TCMD by her spouse.

Liquidating TCMD at the present moment would yield a profit of almost +34.65% for the Congresswoman's spouse.

Furthermore, the disclosure outlined two additional financial ventures, both involving Artivion Inc, a pharmaceutical entity operating within the same sector as Tactile.

If you want to receive daily updates on political trading, click here

🔔 3/ How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

The Seven Lakes Research analyst team provides PREMIUM detailed updates from Monday to Friday with all the relevant fact on: 

Click on the button below to start receiving them 👇👇👇👇👇

GET DAILY UPDATES

📄 4/ Interesting stock market stories

STORY #1: Open AI decision reaps gains for MSFT political investors

In the wake of apprehensions regarding the potential hazards of artificial intelligence expressed by the corporate board, Microsoft found itself in an unexpected position of triumph.

In a startling turn of events occurring on a late Friday, the OpenAI board grabbed headlines by ousting its co-founder and CEO, Sam Altman. The board cited concerns over Altman's assertive strategy in commercializing OpenAI's products, raising alarms about the peril of unleashing a rogue artificial intelligence with the capacity to inflict harm on humanity.

This decisive move caught both investors and employees by surprise, leading to a tense standoff. By Monday afternoon, a substantial majority of OpenAI's workforce, numbering over 700 out of 770, threatened mass resignations unless the board relinquished control.

Despite substantial investments from high-profile backers, the board's resolution seemed impervious to their influence. The lack of legal or fiduciary obligations binding the board to heed investor opinions was a significant factor. With Microsoft successfully recruiting Altman, the dynamics of power might undergo a shift, given the primary leverage these investors possess is financial.

Commenting on the situation, Bloomberg News columnist Matt Levine pondered, "If everyone follows Sam Altman to Microsoft, what purpose does retaining control over OpenAI serve?"

Amidst the tumult, those who retained Microsoft stocks experienced considerable gains. Prominent figures like lawmakers Ro Khanna and Markwayne Mullin, who entered the stock market in October, found themselves among the beneficiaries. Furthermore, Nancy Pelosi's spouse exercised Microsoft's call options, totaling nearly 1 million, back in June, adding another noteworthy name to the list.

If you want to be notified when politicians trade stock, we send daily email alerts here 

STORY #2: Northrop Grumman considers tank production in Poland

CEO Kathy J. Warden of Northrop Grumman (NOC:US) disclosed on Thursday that the company is contemplating the production of 120-millimeter tank ammunition in Poland to bolster the increased defense production capacity of the U.S. ally.

The consideration arises as countries in close proximity to Russia, such as Poland, Finland, and Germany, are exploring agreements to manufacture U.S. weapons in Europe. This involves negotiating new arms deals, expediting existing contracts, and reassessing the required munitions volume in light of the conflict in Ukraine.

Poland, responding to Russia's invasion of Ukraine last year, has committed to a substantial increase in defense spending, aiming to allocate 4% of its gross domestic product to defense and double the size of its army. In the previous year, Poland agreed to acquire over 360 Abrams tanks from the United States.

Simultaneously, Mesko, a part of Poland's state-owned PGZ armaments group, is in the final stages of negotiating the deal, as mentioned by Przemyslaw Kowalczuk, the ammunition maker's deputy chief executive. The agreement is expected to significantly boost Mesko's production of 120mm ammunition, increasing it to a minimum of 50,000 to 70,000 rounds annually from the current several thousand.

Before the public announcement of these plans, Congressman Josh Gottheimer invested in the defense firm on September 26, when the stock closed at $426.58 per share. Since his investment, the stock has witnessed an almost +9% increase in value.

If you want to be notified when politicians trade stock, we send daily email alerts here 

STORY #3: Citigroup faces restructuring

Citigroup (C:US) is poised to announce a substantial reorganization on Monday, featuring layoffs and senior management alterations, marking its most significant overhaul in decades

Citigroup has chosen not to offer any official comments on the unfolding situation.

In the preceding month, Citigroup unveiled its plans to streamline its management layers from 13 to 8, constituting a major restructuring effort. The bank reported a 15% reduction in functional roles within the top two leadership layers and the elimination of 60 committees in its third-quarter earnings presentation.

There is heightened vulnerability for support staff in compliance and risk management, as well as technology personnel engaged in overlapping functions, who may face potential layoffs.

Despite the anticipated developments, the stock has been on an upward trajectory for the past month. On the political investments front, Congressman Ro Khanna was observed investing in the financial firm in the first half of October 2023, executing two investment trades totaling $30,000.

Since his recent trade, the stock has experienced a notable +9.5% increase in value.

If you want to be notified when politicians trade stock, we send daily email alerts here 

📄 5/ Political Trading Bot

As you may remember, we have a trading bot that buys the same stocks as politicians

The bot is offered by the SEC registered broker QB, which will perform the trades. We will just provide them with the necessary data to execute

This means that every time politicians buy sizable amount of stocks, the bot buys those stocks as well

If you want to learn more about how to get access to the Political Trading Bot, click on the video below.

We assessed its performance, and it has been delivering solid results so far.

• We launched in May 2022 and the performance was +24% return

• Performance since April 2020 was +237% return