Insiders Are Loading Up on These 2 Beaten-Down Stocks
The great Peter Lynch delivered many classic quips on the subject of investing. One of my favorites can be paraphrased as, "Insiders will sell stock for a lot of reasons, but they'll only buy it for one -- they think it's going up." Insiders have more knowledge about their companies than just about anyone else, so even if a stock may not have appealed to you at first glance, when those in the know are buying, it can make sense to give that stock a second look.
Real estate stocks Annaly Capital Management (NYSE: NLY) and WeWork (NYSE: WE) have both been beaten down over the past few years, but now insiders are adding to their positions, and their prospects may be looking up.
As a mortgage real estate investment trust (mREIT), Annaly borrows money at low short-term rates and invests it in mortgages and mortgage-backed securities that offer higher rates. The mREIT has generated significant cash flow over the years on the spread between those rates. Moreover, because its dividend yield is usually in double-digit percentage points, it's a popular watchlist stock among investors.
Source Fool.com
