Whitney Tilson is out with a new marketing campaign for his services.
He's calling it "whisper trades" and believes it's the "fastest, most reliable way for the average investor to make 10X profits."
Well, I just went through the presentation and have some things to report back to you.
So don't buy the newsletter Whitney is pitching before reading this overview.
You'll know what a "whisper trade" is and whether or not it's legit by the time you're done reading.
Let's get started!
Whisper Trades Summary
Creator: Whitney Tilson
Newsletter: Empire Insider Alert
Stock: Blackstone Minerals (BSM)
Whitney Tilson is out with a new investing service called Empire Insider Alert, and he's marketing the stock-picking newsletter with "whisper trades."
"Whisper trades" refer to insiders in a company buying their own company's stock.
When someone buys stocks in their own company, they have to file a form with the SEC.
This is public information, and investors can use it to their advantage.
The idea is that insiders know things that aren't public information and will buy stocks when they know something that will increase a stock's price.
This is a legitimate investing strategy, and insider buying is a legitimate indicator to consider when buying a stock.
Should you buy Empire Insider Alert?
I don't have the best opinion of Whitney Tilson. I've followed him for the last few years and doubt he can beat the market (it's been proven over the last decade that he can't).
The good news is that while it's expensive to sign up at $2,995, the yearly cost is much lower at $199 per year.
Personally, I'd wait to see what kind of results the newsletter gets before spending any money.
Lastly, my guess for Whitney's "#1 Whisper Trade of 2023" is Blackstone Minerals.
Whitney gave basically zero clues about the company besides that it was a small royalty company based out of Houston.
But Blackstone Minerals is a royalty company out of Houston and they're stock is only trading at around $16 (a person who bought this newsletter confirmed this is the stock pick).
Plus there's been some inside buying along with the the CEO recently taking his salary in stocks instead of cash.
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Whisper Trades FAQ's
I'm sure if you went through the entire Whisper Trades presentation, you probably had some questions.
Here are answers to any questions you might have about whisper trades.
1) What is "Whisper Trades" about?
Whitney Tilson is rebranding a common and well-known investing strategy with "whisper trades."
Whisper Trades is just investing in stocks based on insiders' buying their own stock.
Let's say executives at a company know that a merger is happening that will increase the price of a stock in the future.
The insiders will buy their own stocks, and they have to fill out a form with the SEC notifying them they're doing this.
This information is made public.
The reason for this is that insiders have an advantage over investors outside the company.
By filling out these forms, the public can speculate on the moves and invest in them.
With Whitney's new service, he'll be looking for insider trades and then sending alerts to you if he thinks the stocks are worth buying.
2) What clues does Whitney leave for his "#1 Whisper Trade?"
Usually, a stock picker leaves enough clues in the presentation to figure out the stock.
I've covered a bunch of stock presentations from Whitney and have always been able to figure out the company he's pitching.
But this presentation is a little different.
Whitney doesn't focus on one stock in this presentation and instead focuses on the investing strategy.
The only hints he drops about his "#1 Whisper Trade of 2023" are that it's a "small Houston-based resource royalty company."
This leads me to believe the company is Black Stone Minerals (someone who bought the newsletter confirmed this is the pick).
Black Stone Minerals is a publicly traded mineral and royalty corporation with interests principally in oil and gas properties in the United States.
The company's headquarters are in Houston, Texas, and it has activities in Louisiana, Texas, Oklahoma, North Dakota, and New Mexico.
Black Stone Minerals was formed in 1876 as the Black Stone Oil Company, and has gone through several name changes and transformations since then.
The company now concentrates on the acquisition and management of mineral and royalty assets, primarily in unconventional resource plays such as the Permian Basin, Haynesville Shale, and Bakken/Three Forks formations.
The basic business plan of the company is to acquire mineral and royalty interests in oil and gas properties and then collect royalties on those properties' output.
Black Stone Minerals does not normally operate the assets itself, but rather collaborates with oil and gas corporations to harvest the minerals.
Black Stone Minerals controlled over 20.6 million mineral and royalty acres across the United States as of the end of 2021, making it one of the country's largest owners of mineral and royalty holdings.
The company's portfolio is varied, with holdings in both oil and gas resources, as well as producing and non-producing properties.
The New York Stock Exchange trades Black Stone Minerals under the ticker name BSM. The company's market value was roughly $3.8 billion as of May 2023.
Since becoming a publicly traded business in 2015, Black Stone Minerals has continuously paid a quarterly dividend to its shareholders.
The insider buying is exaggerated by Tilson but it is happening.
The CEO recently started taking payment in stock options which indicates something big is on the horizon.
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3) What are the details of the Empire Insider Alert?
Empire Insider Alert is Whitney's newest investing newsletter.
He already sells a bunch that I've covered before, including Empire Stock Investor.
Empire Insider Alert revolves around this concept of "whisper trades" or insider trading.
Whitney looks for companies that have increased insider buying and then sends you two recommendations based on these insider buys.
As far as price goes, it's $2,995 to sign up, and then you have to pay $199 per year after.
The initial sign-up fee is obviously very high, but the yearly price after that isn't too bad.
Usually, these kinds of newsletters reach thousands per year.
Additionally, you get 30 days to get your money back.
4) Is Whitney Tilson trustworthy?
The last question we're going to tackle here is whether Whitney Tilson is trustworthy.
I have mixed feelings about Whitney.
At one point in his career (early 2000s to around 2010), Whitney was a very respected hedge fund manager.
His hedge fund performed at a high level, and he got market-beating results for his customers.
However, things changed after the recession, and Whitney has been on a very prolonged losing streak.
This resulted in his once-market-beating hedge fund closing down.
After this, Whitney pivoted to selling stock picks to retail investors through his investing publisher, Empire Financial Research.
He sells many newsletters from this publisher, but I don't think any of them beat the market.
Many of the stock picks I've looked at from him were pretty big losers, and even his winning picks weren't market beaters when you add up the portfolio's performance.
On top of this, a bigger company owns Empire Financial Research, called MarketWise.
They're a pretty predatory company, and their marketing is very aggressive.
They'll try to manipulate you into spending thousands of dollars more after you buy from them.
Their sales funnels are meant to nickel and dime you.
So overall, I think Whitney is competent and, at one point, could be considered one of the best.
But those days are long, and you're better off following someone else for stock picks.
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Wrapping Things Up
So that's the end of my overview of Tilson's "Whisper Trades" marketing campaign.
In the end, he's just recommending stocks with increased insider buying.
This is a well-known investing strategy, and many people use it.
And the stock Whitney is recommending is Black Stone Minerals.
This is all for Whitney's newest newsletter, which is pretty expensive.
I personally wouldn't pay Tilson thousands of dollars for stock recommendations.
He hasn't been able to beat the market in some time.
The good news is that there are much more affordable stock-picking services out there.
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