Author: Steven Kiel
Steven Kiel is the president and chief investment officer of Arquitos Capital Management. He’s been quoted in The Wall Street Journal, USA Today, the Indianapolis Star and other newspapers, has had op-eds published at the Daily Caller, National Review Online and local newspapers, and is a regular contributor to SeekingAlpha.com and GuruFocus.com. Steven is also a captain and judge advocate in the Army Reserves and a veteran of Operation Iraqi Freedom. He has had his military experiences and charitable activities recognized by a variety of national news sources. Additionally, Steven has led a non-profit consulting firm and worked for a nationally recognized public policy organization. He is licensed as a ...More registered investment advisor. Steven is a graduate of George Mason School of Law and Illinois State University, and is a member of the bar in Illinois and Washington, D.C.
Posts by Steven Kiel:
Posted on 15. Jul, 2011 by Steven Kiel.
Insider Buying: 5 Recent CEO Buys of at Least $100K
This week I have five stocks with CEO insider buys of at least $100,000. One of the reasons why I regularly do these lists is to learn about companies that I otherwise wouldn’t have come across. There are a few interesting ones in this list that I think require more research and are reasonably priced.
As I’ve previously mentioned, I prefer CEO and CFO insider buying to other buyers. Those two positions give a unique look to the day-to-day operations of the company and should provide better clues to performance or a stock mis-pricing. If any of these stocks look interesting to you, I encourage you to do more research before buying.
Below are five stocks with recent CEO buys of at least $100,000:
TrustCo Bank Corp. NY (TRST): CEO Robert J. McCormick participated in a secondary for this New York-based bank. McCormick bought $400,000 worth of shares at $4.60 on July 6. The offering raised $68.1 million. The bank has been profitable throughout the downturn and currently trades at a price to book of 1.5. Over the last 10 years it has traditionally traded closer to four times book. The stock is currently yielding 5.3%, but the payout ratio is high. That doesn’t mean there is an immediate risk of a dividend cut, but it’s something to keep an eye on. This appears to be an undervalued stock and a well run bank.
TearLab Corp. (TEAR): TearLab is a tiny, $37 million market cap ophthalmic device company. It completed a $7 million private placement on July 5 that included 3.85 million units at $1.82 and a warrant to purchase a share at $1.86. CEO Elias Vamvakas participated by spending $190,379 on the transaction.
Rentrak (RENT): CEO Bill Livek bought $106,000 of company shares on June 29. I also highlighted Livek’s insider buys from March when he was buying in the $23 range. Shares are now about $19. Six other insiders also made purchases since the beginning of June. Rentrak is a $217 million market cap media measurement and research company. StreetAuthority recently highlighted Rentrak as a company that may be set for a comeback in the second half of the year.
EnPro Industries (NPO): CEO Stephen Macadam bought $100,600 of shares on June 24. This followed purchases of nearly $120,000 on June 9. EnPro Industries manufactures and markets industrial products such as seals, compressor components and diesel and natural gas engines. Shares are at 52-week highs and have steadily climbed since early 2009.
Kingold Jewelry (KGJI): This is an interesting stock. It’s a Chinese jeweler that has been caught up in the negative reverse merger news. However, I’ve only seen one piece of evidence that groups Kingold Jewelry with potential trouble. There is a good chance that the stock has sold off for reasons not specific to the company. I’ve just come across the name, though, so I welcome any information from investors who have followed the stock more closely. The stock went public in the U.S. in August last year and has dropped from $8 to below $2. If it is legit, it’s trading at only three times earnings and nearly 20% below its stated cash and inventory with no debt.
CEO Hong Jia Zhi is attempting to soothe investor concerns by making a large purchase of company stock. From June 8 through July 6, he bought 200,000 shares between $1.43 and $1.78. The company also issued an open letter to shareholders in early May. The stock is off 20% since then. It’s inevitable that some legitimate Chinese RTO companies are not risky. If you haven’t been completely scared away from the space, you might be interested in doing some extensive research on this one. Please contact me with what you find.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Posted on 25. Mar, 2011 by Steven Kiel.
by: Steven Kiel
Each week I highlight large insider purchases made by the CEO. These purchases must not be option grants or exercises. I prefer to track insider buying at the CEO and CFO level, rather than at the Board level, because management should have a better idea of what’s going on in the day-to-day operation of the company. An insider buys company shares because they have confidence in the company and the stock, and occasionally these purchases foreshadow a coming catalyst.
At the same time, these insiders are humans and can get caught up in the market and may be blind to problems within their own company. This list should be treated as a handy starting point for doing research, not the final step. Last week’s edition featured CEO purchases of more than $200,000. You can see those stocks here. This week we’re back to the $100,000 level, and we have 7 stocks:
Sanders Morris Harris Group (SMHG): This is an interesting stock. The company will be changing its name to The Edelman Financial Group and elevated president Ric Edelman to be a co-CEO with current CEO, George Ball. The plan is for Ball to step aside in a year or so. continue reading herre at Seeking Alpha