Industries in crisis provide fantastic opportunities if you are willing to wait patiently for some of the dust to settle and don’t mind temporary drawdowns as it is nearly impossible to pick bottoms.
Earlier this year I started compiling a list of software and software-adjacent companies that were seeing insider buying after a massive drop in the price of their stock. I covered why this was important and included a list of 11 companies with insider buying in my article Where Are The Software Insiders? in February. The following three points from that article are worth repeating:
Why is this important?
When an industry has seen a big decline due to external shocks, insiders have often stepped up to buy hand over fist and while they tend to be early, the subsequent outcomes have been very favorable.