Cottonwood (cotton less) flowing heavy sap/pitch - Bugs?

[Rxburner]

I have 5 year old cottonless cottonwoods and one is flowing heavy sap about 10 feet up on the main trunk and the same on a branch near it. There is also a butt swell about 4 feet up where the first limbs branch off. Found lots of Lady bugs and about half dozen other BIG beatles (1/2 inch diameter, black) on it. Now other signs of stress so far. Is it infested by bugs or ...?

 

[jasonsykes]

Seen this before

I have also seen this before. Anyone have an answer for the both of us?

 

[Bodark]

Are the beetles black and white, cottonwood borer. Cottonwood trees are nitorious for developing bacteria flux from an exsisting wound. Bacteria will build up and flux or expell from the tree, usually it stains the bark. Frost cracking and or borer holes can be an entrance. Poorly made cuts on the branch collar lead to this as well.