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 quite significant, with ~180 transactions taking place

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

🏦 2/ US Politicians potential insider trading: Michael McCaul’s wife sells SolarEdge just before -28% price drop

Rep. McCaul often trades the industrial and IT sectors 

In his last disclosure revealed more than 130 trades in 55 stocks, mostly executed by his spouse or child

On August 8, his family members placed a timely sale in SolarEdge Technologies Inc (SEDG:US) stock before it dropped significantly

This savvy move saved a whopping 28.27% in potential losses

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 👇👇👇👇👇

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📄 4/ Interesting stock market stories

STORY #1: Biden supports autoworkers strike while other politicians trade Ford, General Motors and Stellantis

The United Auto Workers (UAW) is currently in negotiations with the Big 3 Auto Manufacturers:

• General Motors (GM:US)

• Ford (F:US)

• Stellantis (STLA:US)

They are asking for salary raises and improved benefits for their members, referencing recent CEO salary increases and significant corporate profits as justification

Their demands include:

• 36% increase in base pay over four years

• Removal of wage tiers for factory jobs

• 32-hour workweek with full compensation

President Joe Biden is supportive:

Moreover, Rep. Khanna also expressed his support for the UAW's strike against the Big 3 Auto Manufacturers

But, in reality, lot of lawmakers traded Ford, GM and Stellantis on top of the UAW news in 2023

Here the politicians who recently traded Ford:

• List include Tommy Tuberville, Earl Blumenauer, Ro Khanna, and Daniel S. Goldman

• 21 trades were placed

• $1 million of volume

• 6 politicians were involved

Here politicians who recently traded General Motors

• List include Ro Khanna, and Bill Keating

• 35 trades were placed

• $769k of volume

• 5 politicians were involved

And here politicians who recently traded Stellantis

• List include Micheal Burgess, and Dan Goldman

• 2 trades were placed

• $65k of volume

• 2 politicians were involved

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

STORY #2: Cisco acquires Splunk to become one of the world's largest software companies

Digital communication provide Cisco (CSCO:US) is acquiring software company Splunk (SPLK:US) for a $28 billion valuation

Combined, Cisco and Splunk will become one of the world's largest software companies

Main reasons for the acquisitions are the following:

• To strengthen Cisco's position in AI and security

• Contribution to Cisco’s recurring revenue

• The deal is cash flow positive and gross margin accretive in the first year after closing

• It will facilitate revenue growth and gross margin expansion for Cisco

Cisco shares fell more than 3% on the news while Splunk surged over 20%

Congressman Ro Khanna was buying Cisco shares this year while his colleagues Zoe Lofgren, Tommy Tuberville, and Rob Wittman were seen selling shares.

Most notably, Lawmakers Tommy Tuberville, Tom Carper, and Scott Franklin each sold $15,000 - $50,000 worth of Cisco stock in 2023

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

STORY #3: Microsoft was approved for the acquisition of Activision Blizzard

The UK's Competition and Markets Authority (CMA) has granted preliminary approval for Microsoft's (MSFT:US) acquisition of Activision Blizzard (ATVI:US) for $69 billion

Initially, the CMA had raised objections related to cloud gaming. However, Microsoft has since adjusted the terms of the deal, transferring cloud gaming rights for both existing and forthcoming Activision Blizzard games to Ubisoft

Final decision will be October 18th

On the political trading front, several congress members were seen buying shares of MSFT this year, including Ro Khanna, Michael Guest, Josh Gottheimer, Kathy Manning & Daniel S. Goldman

Most notably, former House speaker Nancy Pelosi's spouse exercised 50 MSFT call options (5,000 shares) at a strike price of $180 on June 15.

In contrast, multiple lawmakers were seen laying off their stakes in ATVI, including Seth Moulton and Tommy Tuberville.

The MSFT stock trades above 33% YTD, whereas ATVI shares trade more than 20% in green YTD

If you want to be updated when politicians buys / sells stocks, we send daily email alerts here