SEC Investor - Insider Buying

Synta Buying Could Mean Opportunity

SECInvestor.com — Wed, 28 Feb 2007 18:31:24 GMT

Synta Pharmaceuticals Corp. (NDAQ:SNTA) shares continued their decline today despite strong insider buying since its initial public offering earlier this month. Synta is an early-stage drug development company with a rich portfolio of chemical compounds, small molecules and plant extracts that it mines for drugs that the company hopes will be able to battle skin cancer or inflammation ailments like rheumatoid arthritis. Interestingly, the company's shares are down over 15% from their highs while several members of management and the Board of Directors have disclosed large purchases in a series of Form 4 filings with the SEC. Moreover, Luxor Capital Group also disclosed a 6% stake in the company in a Schedule 13G - indicating institutional interest in the company. Typically when a company IPOs, management uses the opportunity to divest their shares in order to diversify their portfolio. Therefore, this combination of events is certainly worth a second look...

Who is buying up these shares and could they have any information that normal investors do not? Well, there are several company officers that reported purchases, including:

Eric Jacobson - Sr. VP, Research, and CMO - disclosed a 300 share purchase at $10/share on February 9th.
Martin Williams - Sr. VP, Business Dev., and CBO - disclosed a 200 share purchase at $10/share on February 9th.
Keith Gollust - Director - disclosed a 180,000 share purchase at $10/share on February 9th.
Robert Wilson - Director - disclosed a 100,000 share purchase at $10/share on February 9th.
Bruce Kovner - Director - disclosed a 720,000 share purchase at $10/share on February 9th.

Now, these numbers are not employee stock options, restricted stock grants, or stock awards - these are open market purchases of common stock using their own cash! One of the more interesting members of this group is Bruce Kovner, who readers of this blog may recognize as the manager of Caxton Associates - one of the more successful hedge funds on Wall Street. Currently, he alone holds around a million shares that he purchased for close to $10 million. Combined, this open market purchasing by company officers, directors, and a successful hedge fund manager make this stock one definitely worth watching!

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Workstream CEO Picks Up 25k Shares

SECInvestor.com — Fri, 19 Jan 2007 18:48:33 GMT

Workstream Inc. (NDAQ:WSTM) shares moved up $0.09, or 8.18%, to $1.19 today after CEO Michael Mullarkey disclosed a 25,000 share purchase at $1.12 per share in a form 4 filing with the SEC, bringing his overall stake to over 4.3 million shares. The web-based software provider announced earlier this month that it would remain listed on the Nasdaq after the stock dropped below $1 for over 30 consecutive days - which violates Nasdaq listing requirements of a $1 or greater share price. Currently the company is trading below enterprise value and is slowly making its way back to profitability; however, the company does have $14.11m in debt with only $5.53m in cash. The CEO's 25k share purchase illustrates confidence in the company, but whether or not a successful turnaround can be orchestrated remains to be seen. Regardless, this is a great stock to keep on the radar over the next year.

Workstream Inc.'s s principal activity is to provide a range of employment services and web-based software services for Human Capital Management. The Group operates through two segments: Enterprise Workforce Services and Career Transition Services. Enterprise Workforce Services include recruiting systems, recruitment services, applicant sourcing and exchange and employee portal, recruitment research, online exchange, and employee management and retention services. Career Transition Services include career marketing and outplacement services. The operations are conducted mainly in Canada and the United States.

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Lawson Software CEO Picks Up 80,000 Shares

SECInvestor.com — Tue, 16 Jan 2007 19:52:00 GMT

Lawson Software Inc. (NDAQ:LWSN) CEO Harry Debes disclosed an 80,000 share purchase at prices ranging from $6.64 to $6.90 in a transaction valued at more than $530,000, bringing his his overall stake to 128,674 shares. The transaction, disclosed in a Form 4 filing with the SEC, helped move LWSN up $0.11, or 1.63%, to $6.87 so far in today's session.

The company provides business application software, services and maintenance to customers primarily in the services sector, trade industries and manufacturing/distribution sectors specializing in specific markets, including health care, public services, retail, financial services, food and beverage, and wholesale distribution. While the company is currently trading above enterprise value with a high PEG of 2.59, it does have $1.41/share in cash and very little debt. This makes the company a potential acquisition target in an increasingly active M&A market, and new contracts should help the company prop up its falling earnings in future quarters. Combined, these factors make LWSN a stock worth watching over the next few months.

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Notable Insider Trades

SECInvestor.com — Mon, 18 Dec 2006 01:13:26 GMT

Oxigene Inc. (NDAQ:OXGN)
Form 4 Filing
Director Per-Olof Soderberg disclosed purchasing 65,800 shares at $4.94 in a transaction worth $325,052. This brings his total stake to 702,130 shares. The purchase comes as the stock has moved off of its highs of $5.70 to its current levels of $4.90.

Perma-Fix Environmental Services Inc. (NDAQ:PESI)
Form 4 Filing
CFO Steven Baughman disclosed purchasing 100,000 shares at prices ranging from $2.14 to $2.19, bringing his stake to 300,009 in a transaction worth around $215,000. This brings his total stake to 300,009 shares. The purchase moved the stock up over 6% today, adding to its existing ~44% gains on the year. The waste removal company stated recently that it was shedding low margin contracts in order to focus on better opportunities. Moreover, it said it was negotiating with the DoE and DoD to spread their waste removal operations more evenly throughout the year.

Recent Insider Trading

SECInvestor.com — Thu, 14 Dec 2006 17:17:17 GMT

MathStar (NDAQ:MATH) -- CEO Douglas Pihl disclosed, in a form 4 filing with the SEC, that he had purchased 20,000 shares on December 12th at $3.99, bringing his total stake in the company to 1,537,836. MathStar shares have declined from $6.00 per share in July of this year to their current levels around $4.15 per share; however, the stock has recently formed a high-volume base between $3.70 and $4.15. This nearly $80,000 insider purchase could indicate a possible turnaround, making MATH a stock worth watching.

Cimarex Energy Co. (NYSE:XEC) -- Chairman and CEO F. H. Merelli disclosed, in a form 4 filing with the SEC, a 20,900 share purchase today at prices ranging from $37.10 to $37.36, bringing his total stake in the company to 280,646 shares. The oil and gas exploration company faced a decline from $45 to $35 per share in 2006 as the company faced exploration and production issues. Recent insider buying could indicate that these issues will soon be resolved, which could mean share appreciation. This is definitely a stock to watch.

NEST Sees Insider Buying

SECInvestor.com — Tue, 12 Dec 2006 19:18:58 GMT

Nestor Inc. (NDAQ:NEST) has been seeing an increasing amount of open market insider buying lately (revealed in Form 4 filings with the SEC) ahead of its quarterly earnings release. The trend continued today as the company's CEO, William B. Danzell, disclosed a 20,000 share purchase valued at almost $28,000, bringing his stake up to 10,069,396 shares. Yesterday, the company's director, Michael C. James, also disclosed purchases totaling 20,000 shares, bringing his stake up to 331,641 shares. There were several other recent open market purchases by these two earlier this year, each totaling around 20,000 shares. The buying began just after the company transferred its listing to the Nasdaq Capital Market and announced that it was cutting 20% of its workforce in an effort to reduce current operate expense levels and focus on the company's operations on program delivery and support. It appears that management is confident that the increased liquidity of the Nasdaq Capital Market combined with their efforts to reduce costs will help turn the company around after its drop from $4 earlier this year to just $1.35 now. It is also worth noting that much of management holds many out-of-the-money stock options, which should motivate them to do anything they can to increase the share price. This makes NEST a stock worthy of our watchlist.

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New AMD Chairman Buys 25K Stake

SECInvestor.com — Fri, 01 Dec 2006 17:09:01 GMT

Advanced Micro Devices Inc. (NYSE:AMD) revealed today in a form 4 filing with the SEC that James Fleck - a new director from AMD's acquisition of ATI - purchased 25,000 shares on the open market at $22.15. This is the first purchase he has made since he was appointed as a director on October 25, 2006. AMD's stock has fallen significantly this year from a high of $42 to its current levels in the mid-20's. This drop largely stems from a reduced outlook and increasing spending on acquisitions, including the ATI purchase for $5.4 billion. With company insiders beginning to purchase at these levels, it may be a sign that things are ready to improve, and this makes it a stock worth watching over the next few months.

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Insider Buying Highlights

SECInvestor.com — Thu, 30 Nov 2006 16:08:10 GMT

Brocade Communications (NDAQ:BRCD) revealed in a form 4 filing with the SEC after the close yesterday that the company's CEO exercised 1,079,943 options at between $4.55 and $6.00, and then sold 1,679,943 shares at $8.97.

Carriage Services Inc. (NYSE:CSV) revealed in a form 4 filing with the SEC yesterday that the company's chairman purchased 27,100 shares between 11/27 and 11/28 at prices between $4.93 and $5.00, bringing his stake to 952,965 shares.

Home Solutions of America Inc. (NDAQ:HSOA) revealed in a form 4 filing with the SEC yesterday that the company's president purchased 20,000 shares on the open market at $5.48, bringing his stake up to 218,930 shares.

TD Ameritrade Holding Corporation (NDAQ:AMTD) revealed in a form 4 filing with the SEC yesterday that the company's director purchased 10,000 shares on the open market on November 27th at $17.10, bringing his stake to 25,200 shares.

BBI Shows New Signs of Life

SECInvestor.com — Wed, 22 Nov 2006 17:55:39 GMT

Blockbuster Inc. (NYSE:BBI) moved up 12% in mid-day today after Chairman/CEO John F. Antioco disclosed a 220,000 share purchase at $4.66 after the bell yesterday in a form 4 filing with the SEC. This move marks a continuation of BBI's bullish run from $3.74 in mid-October to its current level of $5.10. The $1 million transaction also came just before today's news that Papa John's and Blockbuster would be teaming up to promote their online properties - an area in which Blockbuster is struggling. The new agreement allows Papa John's customers to sign up for a free trial of Blockbuster's online DVD rental service by going to Papa John's website - in exchange, the pizza maker is offering a $10 gift card.

Also worth noting, Fitch also boosted the company's outlook from "stable" from "negative" earlier this week citing improved financial flexibility, a stronger liquidity position and cost-cutting efforts. The ratings firm also warned, however, that Blockbuster's revenue growth continues to be hurt by structural changes in the industry, competitive factors and its 2005 decision to eliminate late fees. Clearly, there are still a lot of problems left for this company to address; however, improvements to their online renting program and strong insider buying may prove to be the forumla to success. This stock is definitely one worth watching in the coming months.>

MGM Gets $55 Tender Offer

SECInvestor.com — Wed, 22 Nov 2006 15:57:51 GMT

MGM Mirage (NYSE:MGM) moved up almost 10% today after receiving a $825 million tender offer for 15,000,000 shares at $55/share from billionaire investor Kirk Kerkorian's Tracinda Corporation. The move would up Tracinda's stake from 56.3% to 61.7% with over 173 million shares. MGM Mirage owns the MGM Grand, Luxor, Bellagio and other casinos in Las Vegas along with gaming properties in other Nevada cities and Atlantic City. The moves comes as the entertainment industry has been witnessing increased M&A activity after Harrah's private equity takeover. According to the SC TO-C filing by Tracinda: "This tender offer demonstrates our confidence in MGM MIRAGE and its management and our commitment to the company’s future." While the transaction has yet to be completed, this move does strengthen confidence in the company's future given the billionaire investor was willing to tender these shares at a 12% premium to the going market price. Moreover, in an industry where there has been so much M&A activity lately, we can't rule out the possibility of a buyout or transaction that reward shareholders. Combined, these facts make MGM a stock to keep a close eye on.

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CEO Increases Stake in CKEC

SECInvestor.com — Mon, 20 Nov 2006 19:48:52 GMT

Carmike Cinemas Inc. (NDAQ:CKEC) revealed today in a Form 4 filing with the SEC that Chairman/CEO Michael Patrick purchased 48,100 shares in a transaction valued at over $900,000. This transaction brought his stake in the company to 360,313 shares. We first started covering this company back in September, when we noticed Watershed's interest in the company. Since then, the stock has moved up over 15% as the company recently announced plans to raise refreshment and ticket prices at its theaters in an effort to increase revenues. The company also said that its pre-showing advertising revenues rose, while they are implementing new technologies to help the ease of switching show times and movies. Investors were also pleased to hear that there would be no more fees from restatements, which plagued the company's earnings for several quarters in the past. News of the insider's purchase helped the stock move up over 4% today in intraday trading.

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Recent Insider Buying

SECInvestor.com — Fri, 10 Nov 2006 16:49:08 GMT

Genesis Microchip Inc. (NDAQ:GNSS)
Genesis CEO Elias Antoun revealed his recent purchases amounting to 10,000 shares transacted on 11/08/2006, bringing his stake to 17,582.

iCAD Inc. (NDAQ:ICAD)
iCAD CEO Kenneth Ferry disclosed a purchase of 60,000 shares of the company on 11/07/2006; this amount represents his entire stake in the company.

Susquehanna Bancshares Inc. (NDAQ:SUSQ)
Susquehanna Bancshares director Wayne Alter Jr. disclosed a 15,000 share purchase on 11/03/2006, bringing his stake to 50,000 shares.

Buffet Reveals Stake in Target

SECInvestor.com — Tue, 31 Oct 2006 18:09:24 GMT

Berkshire Hathaway (NYSE:BRK) revealed yesterday in a 13F/A filing with the SEC afterhours that it had taken a 5.5% stake in Target Corp. (NYSE:TGT) with purchases dating back to June 30th. This news isn't particularly suprising given Buffet's investment in competitor Walmart; however, share in the retailer climbed over 1% today on the news as investors look to follow the Oracle of Omaha's lead. According to the filing, Buffet's average price was $50.30, which means he is already sitting on a nice 17% profit as shares near $60. Buffet is known for investing for the long-term in significantly undervalued companies, meaning that he is likely expecting much more upside. Investors should keep an eye on future SEC filings by Buffet, in particular Form 4s which indicate further purchasing of TGT shares.

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Gap Chairman Unloads a Million Shares

SECInvestor.com — Tue, 24 Oct 2006 17:38:37 GMT

The Gap, Inc. (NYSE:GPS) revealed today in a Form 4 filing with the SEC that Chairman Robert Fisher sold one million shares on October 19th and 20th at prices averaging $19.45. Although the majority of this sale was by trusts, Fisher did personally sell over 250,000 shares. This sale comes as Gap recently moved higher after it announced that it would launch on online shoe store to compete with Zappos.com, called Piperlime. Many insist that Piperlime does not have a chance at competing with Zappos or other online shoe stores, and will actually lose money as a result of their liberal shipping and return policies. Whether the sale of shares is simply a diversification move or a hint to future problems with Piperlime or other areas of the company remains to be seen.

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CAG CEO and VP Buy More Shares

SECInvestor.com — Thu, 05 Oct 2006 14:19:38 GMT

ConAgra Foods Inc. (NYSE:CAG) revealed today in a Form 4 filing with the SEC that President & CEO Gary Rodkin purchased 75,000 shares on the open market in a transaction valued at over $1.8 million. The company also revealed that their Executive Vice President of Legal & External Affairs purchased a total of 11,000 shares in a transaction valued at almost $270,000. These transactions are worth noting because two key executives purchased a significant amount of shares on the same day, which could indicate that a favorable event is in the company's future.

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TIE CEO Buys Another 200k Shares

SECInvestor.com — Wed, 04 Oct 2006 14:46:06 GMT

Titanium Metals Corporation (NYSE:TIE) revealed today in a Form 4 filing with the SEC that it's Chairman & CEO, Harold Simmons, purchased another 200,000 shares on the open market today in a deal worth over $4.7 million. He had previously bought 155,400 in September and 125,000 shares on July 14th. This transaction brings his stake to over 61 million shares. TIE has been slowly trending down to $23.82 after peaking at a split-adjusted $44.81 per share in May. The company is a producer of titanium products used in the aerospace industry among others, and has benefited from the spike in the aerospace industry (by companies like Boeing) for titanium used in their landing gear and other parts. The company's stock has dropped recently as commodity prices have slid to lows and inflation pressure has mounted. This insider buying activity could indicate that the CEO believes the company is ready for a turnaround.

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NSC Continues Buyback

SECInvestor.com — Tue, 03 Oct 2006 15:58:13 GMT

Northfolk Southern Corp (NYSE:NSC) announced today in an 8K filing with the SEC that it would buyback an additional 50 million shares after already purchasing 17 million last quarter. The transaction is valued at over $900 million, while the previous transaction was valued at $730 million. The stock is off its high of $56 in May to it's current level around $44. The company is currently trading below enterprise value with a PEG of only 0.84 - making it significantly undervalued. This buying could indicate that the company believes it is at a bottom.

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Harbinger Buys 500K Share of Gateway

SECInvestor.com — Wed, 27 Sep 2006 15:44:58 GMT

Gateway Inc. (NYSE:GTW) announced today in a Form 4 filing with the SEC that Harbinger Capital Partners had acquired 505,700 shares on September 22 on the open market, bringing their stake up to 27,155,930. This news comes shortly afterway Gateway rejected John Hui's $450 million bid for the company's retail operations and did not comment on a possible offer to acquire all outstanding shares. It is also worth noting that Richard Snyder - a company Director - purchased 139,644 shares (about 60,000 of that being an award) with on the 19th. With Hui's second offer still on the table, a buyout at a premium to the current market price remains a possibility.

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Should You Buy EXP?

SECInvestor.com — Tue, 26 Sep 2006 15:40:52 GMT

Eagle Materials, Inc. (NYSE:EXP) revealed some insider buying recently in several Form 4 filings with the SEC. On September 19th, Director Lawrence Hirsch purchased 400,000 shares on the open market in a transaction worth over $14 million - a significant amount for an individual. Richard Stewart, another director, revealed yesterday that he had also purchased 1,000 shares in a transaction worth over $35,000. Does this insider buying make sense?

Well, the company is the second largest maker of drywall - the very same industry that caught Warren Buffet's interest (however he's invested in the largest producer, USG Corp.). The stock's recent declines come as a result of the slowdown in residential construction, which accounts for 40-50% of the company's drywall sales; however, the company's commercial demand remains quite strong. Last quarter, the company saw a 27% rise in revenues and a 70% rise in earnings. Finally, the stock is trading at a P/E of just 11x with a PEG ratio of 0.20 and trading significantly below its enterprise value, all of which indicates that the company is severely undervalued.

Although the residential real estate market may not be doing so well right now, this company still benefits from the commercial side of the market and is available on the cheap! This stock is definitely worth keeping an eye on!

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WFT Moves Up on Insider Buying

SECInvestor.com — Wed, 13 Sep 2006 17:04:00 GMT

Weatherford International Ltd. (NYSE:WFT) revealed today in a Form 4 filing with the SEC that director Robert Moses purchased 53,544 shares on Monday at prices ranging from $39.88 - $39.99. This $2 million purchase follows a rush of other smaller puchases by company officers and directors on September 1st. Weatherford provides equipment and services used for the drilling, completion, and production of oil and natural gas wells in the U.S. Some are speculating that this move relates to the company's earlier announcement of a successful installation of their "Life of Well" system. In that announcement, the company gave an overview of the system:

"Weatherford's Life of Well(TM) optical in-well system is providing both continuous seismic and pressure/temperature monitoring data and is also interfaced to the existing permanent ocean bottom cable system. This allows for the simultaneous collection of permanent seabed and downhole seismic data representing a significant milestone for the industry."

Although a report issued yesterday argued that value investors should wait to invest in oil services companies, investors applauded the insider buying as the price rose 5.45% in mid-day trading today.

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