Yitzhak Tshuva with 3 purchases in 4 days: the stock he put over 2 million shekels into
Insider movements are always interesting. It is customary to say that when insiders sell, there can be a variety of reasons for this, and it does not necessarily indicate that they think the stock is unattractive. Conversely, when insiders increase their holdings in their company, it can certainly be a sign that the stock is interesting.
Over the past few days, the controlling shareholder of Delek Group, Yitzhak Tshuva, has been increasing his holdings in Delek Yezum stock, a company that is effectively a "spin-off" from Delek Group and for which shareholders of the latter received shares as a dividend in kind.
So far, in just the last four days, Tshuva has made three different purchases of the stock, with an aggregate value of over 2 million shekels.
Delek Yezum is a company with a very interesting and unique activity. In fact, the company does not directly hold any assets, except for a contractual right to receive royalties from the revenues of the Leviathan reservoir, a reservoir in which Delek Group holds 43% through its subsidiary NewMed Energy (formerly known as Delek Drilling).
On the first trading day of Delek Yezum last month, the stock jumped by 735%, a jump that stemmed mainly from a technical matter: the stock exchange set the base price of the stock according to the company's accounting capital, even though the economic value of the expected royalties to be received from the reservoir was much higher. Investors understood this immediately and the "arbitrage" closed.
Leviathan reservoir is a very interesting asset these days. The reservoir, which is already producing a large amount of gas and yielding a strong cash flow, is expected to produce even more gas than it does today due to expansion works being carried out. If in 2026 the reservoir produces gas in an amount of about 14 BCM per year, by the end of 2029 the expectation is that the reservoir will produce 21 BCM per year.
Delek Yezum is of course expected to benefit from this, but there are other companies relevant for those interested in being exposed to the Leviathan reservoir. One of them is Ratio Yahash, a company that holds about 15% of the reservoir and distributes most of the cash flow received from it as a dividend to investors.
According to the company's current profit rate, the dividend yield is huge — in the area of 10%, while there is of course a risk here of a single asset, the Leviathan reservoir, which may be damaged in the event of a military conflict.
But everything has a price, and in light of the fact that natural gas is required to provide energy for, for example, power plants, which are flourishing due to the demand for energy as a result of the artificial intelligence revolution, in my opinion, this is definitely an interesting risk-reward ratio.
