Sporadic Congress Traders Adds Nvidia To Stock Portfolio

Hello,

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 limited, with 30 transactions taking place

Aerospace, Defense and Retail were the most invested sectors

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🏦 2/ US Politicians potential insider trading: Sporadic Congress Trader Adds Nvidia To Stock Portfolio

In a week with scant trading from Congress, one member was already reaping profits thanks to the mile-high success of AI giant, NVIDIA Corp. On May 22, Rep. Stephen Lynch purchased NVIDIA Corp (NVDA:US) shares at a stock price of $949.5. With its constant rise, NVDA shares rose by +20.93% since the Congressman’s purchase

Rep. Lynch serves on the Committee on Financial Services, the Committee on Oversight and Accountability and several Caucuses on various issues. An infrequent trader, his other 2024 disclosure was of VMware Inc (VMW:US)’s shares. He sold VMW stock around the same time the company was acquired by Broadcom Inc in Nov 2023.

NVIDIA Corp was once a $360 billion market cap company. Thanks to OpenAI and its chatbot, ChatGPT, the possibilities of AI were opened to the world and market investors. Nvidia's high-quality chips thus became a pecking ground for tech businesses and giants worldwide, turning the company into what it is today: a $2.6 trillion market value company.

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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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📄 3/ Interesting stock market stories

STORY #1:  Trump’s Truth Social Faces FINRA Inquiry Amid Financial Turmoil

Donald Trump's social media company, Truth Social, has confirmed its cooperation with an inquiry from the Financial Industry Regulatory Authority (FINRA) concerning its blank-check merger with Digital World Acquisition Corp (DWAC:US). This investigation, focusing on trading activity prior to the merger announcement should not be seen as an implication of misconduct, according to Trump Media and Technology Group (TMTG).

TMTG has experienced significant volatility since its market debut. Enthusiastic support from Trump loyalists initially propelled the stock to soar by as much as 59% during its Nasdaq debut on March 26.

Compounding its challenges, TMTG recently delayed its quarterly report following the dismissal of its auditor, BF Borgers, which the Securities and Exchange Commission accused of “massive fraud.” TMTG's latest earnings report revealed a substantial net loss of $327.6 million for the first quarter. CEO Devin Nunes attributed the losses to non-cash expenses incurred before the merger's closure.

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

STORY #2: Lawmakers Trade Shares Amid Surging Demand for Weight-Loss Drugs

The global demand for weight-loss drugs from Novo Nordisk (NVO:US) and Eli Lilly (LLY:US) is surging, prompting experts to predict that annual sales could reach $150 billion by the early 2030s, up from $100 billion estimated a year ago.

Last year, global spending on obesity medications was $24 billion, with IQVIA projecting it could reach $131 billion by 2028, a 27% annual growth rate.

David Song of Tema Obesity & Cardiometabolic ETF emphasized the significant unmet medical need, with over 100 million obese Americans and nearly a billion globally. The success of these drugs has significantly increased the market value of Lilly and Novo, with their shares rising 36% and 33% respectively this year.

Competitors are developing treatments offering more convenience, better weight loss, or additional health benefits and over 80 experimental obesity drugs are in human testing.

Taking into account, the politicians' trust in these firms, multiple lawmakers were seen selling shares of LLY in recent months, including Sen. Tommy Tuberville and Rep. Ro Khanna. In contrast, numerous lawmakers were witnessed stocking up on NVO this year including Rep. Michael McCaul.

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

STORY #3:  A Summary of the Main Trades Placed by Politicians and Insiders this Week

• Rep. Michael Guest started buying Nvidia (NVDA) in August 2023, and his investment is up 128%. He is also the Chairman of the House Ethics Committee, which is responsible for policing congressional stock trading.

• Rep. Nancy Pelosi’s Nvidia (NVDA) $5M call options purchase is up 102%.

• Presidential Candidate Robert F. Kennedy has bought GameStop stock (GME) for the first GameStop purchase from a politician since 2021.

• Rep. Pete Sessions sells up to $100k of Nvidia (NVDA) stock. This is the first time we have seen him sell Nvidia, a position he first bought in 2017, delivering a staggering 3,458% return.

• Sen. Tuberville’s HUMA position is up 162% since we reported last month. Humacyte is a small biotech company that has been testing its technology in Ukraine. Tuberville sits on the Armed Services Committee.

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

📄 4/ 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