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Recently we’ve seen a surge in insider buying, this could be for a few reasons:

1. The market is relatively cheap right now

2. They see a buying opportunity, expecting stock prices to rise once the economy improves.

Last week, we were in extreme fear territory, this week the S&P is going to close out it’s best week in 2024.

From the Jobs Report:

If you were to take anything away from today’s report take this: “Be fearful when others are greedy & greedy when others are fearful” - Warren Buffett

This isn’t about the product or service a business sells, it’s about understanding the business operations so well that you can recognize its competitive advantages, evaluate the quality of its leadership, and understand its position within the industry.

Performance Update

$ISPO - is it a buy? Here’s my thought process

*Very risky play*

$ISPO is a beaten-down stock that has been obliterated in the over the last year.

On 8/13 $ISPO announced a $10 million investment agreement with One Planet Group.

CEO Zamani Payam purchased $4.5 million bringing his total ownership of shares to 4.7 million, essentially changing his ownership by almost 40%. Very significant.

But it’s much more complex than that, let’s go deeper into the filing.

The footnote could be tricky to dissect, here’s how I would explain this to my imaginary son:

Imagine Zamani has a big pile of 1,215,271 toy blocks. In this pile:

• 915,271 blocks are in Zamani's room (he owns these directly).

• 300,000 blocks are in his friend's room (One Planet Group), but Zamani can still play with them anytime he wants.

Now get this, Zamani gave 120,000 blocks to someone else. But this didn't change how many blocks he can play with in total. It's like he moved some blocks from one box to another, but he can still use all of them.

• If the company does well (like if its "price" stays high for a month), these blocks turn into regular blocks that Zamani can play with.

• The "price" needs to be $15 or more for 30 days in a row.

• This has to happen within a year, or the magic blocks disappear.

   

This is my bull case:

1. Investment and New Leadership:

   • One Planet Group invested $10 million in Inspirato.

   • Payam Zamani from One Planet became the new CEO and Chairman.

2. Cost Cutting:

   • The company is cutting costs by about $25 million per year.

   • They're laying off 15% of their workforce.

   • They're ending some expensive property leases.

3. Financial Performance:

   • Revenue was $67.4 million, which is 20% less than last year.

   • They lost $15.4 million, which is better than the $46.7 million loss last year.

4. Membership:

   • They have about 12,000 members.

   • This includes about 10,800 Club subscriptions and 1,900 Pass subscriptions.

5. Outlook:

   • Due to the new leadership and cost-cutting, they've removed their financial predictions for 2024.

I was writing this last night when price was $3.17, it’s $4.65 now. I missed my entry * sigh *

Boring Data Watchlist

This weeks wins

$TKNO

Beautiful breakout today

$CLOV

If you made money from any of these calls. Be sure to let me know by responding to this email!

Here are some thoughts about $FFIE stock situation:

Read with me

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