Investing in the biotech sector can be extremely volatile and some investors who are already overweight in this sector could turn to more traditional small and mid caps, Real Money contributor Bret Jensen writes in a recent column.
Greenbrier Cos (GBX) - Get Greenbrier Companies, Inc. Report and Ring Energy (REI) - Get Ring Energy, Inc. Report are two companies that Jensen added to his portfolio because, he says, they are less likely to be impacted by the ongoing global pandemic and company insiders are also buying a lot of shares, which is always a good sign. The amount of shares that an insider buys or sells can be helpful for investors.
Greenbrier makes railroad freight car equipment in the U.S. and as more people get vaccinated, travel and companies also reopen their offices, the company “should benefit from the continued economic expansion as the impact of the pandemic ebbs,” Jensen says.
Greenbrier shares are up more than 18% so far this year.
Read all of Jensen’s investing ideas and his strategies in 2 'Off the Radar' Names to Consider: Insiders have been adding to their stakes in Greenbrier Cos and Ring Energy.
Another positive note is that the CEO has been adding shares -- a total of approximately $4.3 million to his holdings last week while “new orders for rail cars have exceeded deliveries now for two straight quarters, and earnings and revenue growth should be impressive in FY2022.”
Another stock that may not be on the radar of many investors is Ring Energy, a large oil company that has 75,000 net acres in the Permian Basin of Texas and New Mexico. This company is also drawing the attention of insiders and one bought nearly $2.8 million worth of new shares last week.
Ring Energy stock is up a whopping 297% since the start of 2021.
“The rise in oil prices thus far in 2021 has helped the sector and Ring has used this improvement in prices to reduce debt and increase liquidity,” Jensen notes.