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Smart Insider Buys Ahead of Spin, Enters MP

Over three years since being appointed to the Board, insider Ronald Blaylock late last week bought shares of Pfizer, Inc. (PFE) on the open market for the very first time. While every insider buy isn’t an opportunity to enter a stock, Mr. Blaylock's purchase holds all the ingredients of an entry based on the amount of shares bought, his track record and PFE’s upcoming catalyst of a Spinoff.

What's Interesting? The Edge Intelligence...
Last week (Aug 6, 2020), insider Ronald Blaylock bought 13,000 shares of PFE at an average price of $38.55, spending over $500K for his first purchase since joining the Board of Directors on February 23, 2017. This purchase from Mr. Blaylock comes near to PFE’s lofty levels it was originally trading at towards the beginning of the year (currently near its 52-week high of $40.97).

Mr. Blaylock was appointed to the Corporate Governance and Science and Technology Committees of PFE’s Board and is the Founder and Managing Partner of a PE firm called GenNx360 Capital Partners, focused on investing in US industrial and business services companies. Prior to that, Mr. Blaylock founded and managed Blaylock & Co., an investment banking firm.

Smart Insider - Previous Purchase History: Mr. Blaylock has only two previous open market buys over the span of his career as a Board Director. However, both of these purchases were very successful. Back on March 11, 2008, Mr. Blaylock has seen a +780% return on his purchase in Urban One, Inc. (UONE – previously Radio One, Inc.) however only spending $12K of shares at the time. Before that, his very first purchase came in W.R. Berkley (WRB) on November 16, 2001, where he bought 288,334, spending $103,742 and creating a whopping 1,893% gain.

Other Insiders Buys at PFE: At the beginning of the year, Dr. Scott Gottlieb (elected to the Board on June 27, 2019) bought 1,000 shares of PFE on January 30, 2020 at $37, spending $37,000. Before that, Dr. Gottlieb bought for the very first time 3,000 shares on August 23, 2019 at a $34.72 price, spending $104,160. Dr. Gottlieb was also the Director at CombiMatrix Corp. (CBMX), with a 50% positive hit-rate when he bought shares on the open market at CBMX. Dr. Gottlieb is on the Regulatory and Compliance Committee and the Science and Technology Committee at PFE.

Since Mr. Blaylock's and Dr. Gottlieb's buys, the only other insider purchase at PFE goes all the way back to 2011.

The Edge View...
Our smart insider has clearly been patient in picking his spots when he’s put his own money on the line while on the boards of these companies. Now, Mr. Blaylock is back again with his third purchase, this time in PFE. With news in the market surrounding PFE with regards to getting the first COVID-19 vaccine to market, the upcoming Spinoff and buying into price strength, this is a promising signal of what’s to come. We see this as an opportunity to get in at a slightly lower level than the smart insider as well as have a position before PFE’s upcoming Spinoff.