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If a tree falls in an empty woods, drag it into public and chop it down again!


From last Friday's post-close Buzz (aka: The place news and opinion went to die unseen deaths):

Sept 2, 3:48: Walkin' the Talk

Minyan MM "The Mick" writes:

Have you ever seen an insider buy as big as the one today at PetCo (PETC)?


John Danhakl reported buying 1,818,600 shares of Pet Co, paying $21.86 - 21.94 per share. That's way too much math for a Friday but works out to about $40 million.

PetCo is down over 40% ytd. Either Mr. Danhakl believes this is an opportune time to buy the stock or he is a very, very big fan of pets.

Position: None

Sept 2, 4:08: After this I'm leaving and I'm Serious

Minyan RA writes:

Note that same said lover of pets SOLD 3.3 million shares at $35.60 back in October of last year. Nice trade.

Position: Shouting "Thanks and, 'Yeah that was a huge trade' over his shoulder, while running out of the door

Two things make these posts worth revisting.

First, my two email friends and I are almost certainly the only three people who were actually still working at the time they were posted.

More importantly, that's a huge inside buy by a guy who would seem to have a good track record on such things. There are a whole bunch of sub-reasons for this being worth hi-lighting in your Minyanville textbooks.

First, I have no idea how "The Mick" is positioned in PetCo. I assume he's long to the gills. That doesn't matter to me in the least. Mick gave me a good heads up and that's the whole idea of an investment community.

Second, the follow up by RA was a value-add. Again, I don't know how he's positioned. For all I know, RA (and the Mick) are actually Mr. Danhakl himself. He likes seeing his alias in print and he wants to talk his book. Seriously, two great emails. Thanks.

Third, Danhakl, who I don't know, have no reason to think I will someday know and otherwise have no connection to whatsoever, just gave us a nice living example of how grown-ups behave when they think a stock is undervalued.

They buy the stock and report it as required.

They don't take out press-releases, calling the Market "stupid" or fighting with analysts. They don't thump their chests about "making some hard changes" and/ or "chopping off some heads". They don't threaten a proxy fight unless management drops everything to meet with them and "consider our ideas" (read: "bend to our every whim because we have 3% of the stock and a really good PR agent").

Grown up tough guys act like John Wayne or, for want of a better example, John Danhakl. They walk in, make their purchase and say not another word about the topic.

I know nothing else about him but, judging only by the way the guy goes about buying and selling stock (legally, in large size), it's worth paying attention when Mr. Danhakl gets long.

I've got no current opinion on the stock but I'm looking into it. That, right there, is the value-adding difference between "advice" and "sharing the process."

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No positions in stocks mentioned.

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