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There have been studies showing that when insiders accumulate a stock intensively, the stock can be expected to outperform the market during the next six months.

Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10 percent.

In this article I will feature three stocks that met these three criteria of intensive insider buying during the last 30 days.

1. Amyris (AMRS) is an integrated renewable products company focused on providing sustainable alternatives to a broad range of petroleum-sourced products. Amyris uses its industrial synthetic biology platform to convert plant sugars into a variety of hydrocarbon molecules-flexible building blocks that can be used in a wide range of products. Amyris is commercializing these products both as No Compromise renewable ingredients in cosmetics, flavors and fragrances, polymers, lubricants and consumer products, and also as No Compromise renewable diesel and jet fuel.

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Insider buys

  • Fernando Reinach purchased 83,892 shares on December 24 pursuant to a private placement. Fernando Reinach currently controls 176,397 shares or 0.2% of the company. Fernando Reinach serves as a director of the company.
  • John Doerr purchased 1,677,852 shares on December 24 pursuant to a private placement. John Doerr currently controls 6,976,757 shares or 9.4% of the company. John Doerr serves as a director of the company.
  • Sheikh Abdullah bin Khalifa Al Thani purchased 3,355,704 shares on December 24 pursuant to a private placement. Sheikh Abdullah bin Khalifa Al Thani currently controls 5,953,859 shares or 8.0% of the company. Sheikh Abdullah bin Khalifa Al Thani serves as a director of the company.

Financials

The company reported the third-quarter financial results on November 6 with the following highlights:

Revenue$19.1 million
Net loss$20.3 million
Cash$44.4 million
Debt$105.4 million

Amyris announced on December 27 that it had completed a $42.25 million private placement of its common stock.

Outlook

John Melo, Amyris President & CEO, commented on December 27:

"Our own farnesene plant at Paraiso has been successfully commissioned, with initial farnesene production underway. We anticipate sales from this facility during the first quarter of 2013."

Competition

Amyris' competitors include Codexis (CDXS) and FutureFuel (FF). Here is a table comparing these companies.

CompanyAMRSCDXSFFIndustry
Market Cap:158.68M81.49M476.90M125.11M
Employees:43734750077.00
Qtrly Rev Growth (yoy):-0.47-0.21-0.020.19
Revenue:109.38M113.88M366.85M17.13M
Gross Margin:-0.170.670.190.69
EBITDA:-166.05M-5.86M68.25M-7.16M
Operating Margin:-1.65-0.160.16-1.10
Net Income:-221.07M-20.61M38.76MN/A
EPS:-4.17-0.570.93-0.15
P/E:N/AN/A12.4219.92
PEG (5 yr expected):-0.06-0.23N/A0.02
P/S:1.430.721.317.50

Amyris is trading below the industry average P/S ratio.

My analysis

The stock has a $0.75 price target from the Point and Figure chart. There have been three insider buy transactions and there have not been any insider sell transactions during the last 30 days. There are two analyst buy ratings, seven neutral ratings and one sell rating with a average target price of $12.75. The company has a book value of $1.30 per share. I have a neutral bias for the stock currently based on the mixed fundamental and technical picture.

2. Community Financial Shares (OTCQB:CFIS) provides financial services in Wheaton, Glen Ellyn and surrounding communities in DuPage County, Illinois through its subsidiary Community Bank - Wheaton / Glen Ellyn. The company provides banking services including demand, savings and time deposits, loans, mortgage loan origination for investors, cash management, electronic banking services, Internet banking services including bill payment, Community Investment Center services and debit cards. Services are provided to individuals, businesses, governmental units and institutional customers.

Insider buys

  • John Mulherin purchased 10,000 shares on December 21 pursuant to a private placement. John Mulherin currently holds 17,188 shares or 0.3% of the company. John Mulherin serves as a director of the company.
  • Joseph Morrissey purchased 30,000 shares on December 21 pursuant to a private placement. Joseph Morrissey currently holds 76,081 shares or 1.4% of the company. Joseph Morrissey serves as a director of the company.
  • Raymond Dieter purchased 60,000 shares on December 21 pursuant to a private placement. Raymond Dieter currently holds 99,536 shares or 1.8% of the company. Raymond Dieter serves as a director of the company.
  • David Clayton purchased 5,066 shares on December 21 pursuant to a private placement. David Clayton currently controls 30,000 shares or 0.5% of the company. David Clayton serves as a director of the company.
  • William Behrmann purchased 122,000 shares on December 21 pursuant to a private placement. William Behrmann currently controls 129,248 shares or 2.3% of the company. William Behrmann serves as a director of the company.
  • Mary Moran purchased 60,000 shares on December 21 pursuant to a private placement. Mary Moran currently holds 61,202 shares or 1.1% of the company. Mary Moran serves as a director of the company.
  • Scott Hamer purchased 130,000 shares on December 21 pursuant to a private placement. Scott Hamer currently holds 131,800 shares or 2.4% of the company. Scott Hamer is President and CEO of the company.
  • Penny Borello purchased 145,000 shares on December 21 pursuant to a private placement. Penny Borello currently holds 150,840 shares or 2.7% of the company. Penny Borello serves as a director of the company.
  • Robert Haeger purchased 120,000 shares on December 21 pursuant to a private placement. Robert Haeger currently controls 123,500 shares or 2.2% of the company. Robert Haeger serves as a director of the company.
  • Donald Fischer purchased 30,000 shares on December 21 pursuant to a private placement. Donald Fischer currently holds 81,971 shares or 1.5% of the company. Donald Fischer is Chairman of the Board.

Financials

The company reported the third-quarter financial results on November 8 with the following highlights:

Net loss$0.5 million
Tangible book value$1.19 per share

My analysis

There have been 10 insider buy transactions and there have not been any insider sell transactions this year. The stock could be a good pick below the tangible book value of $1.19 per share.

3. TransAtlantic Petroleum (TAT) is an international energy company engaged in the acquisition, development, exploration and production of oil and natural gas. The company holds interests in developed and undeveloped oil and gas properties in Turkey, Bulgaria and Romania.

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Insider buys

  • Mustafa Yavuz purchased 15,000 shares on December 6-26 and currently holds 60,000 shares or less than 0.1% of the company. Mustafa Yavuz is Chief Operating Officer of the company.
  • Malone Mitchell purchased 200,000 shares on December 26-27 and currently controls 146,272,058 shares or 39.7% of the company. Malone Mitchell is Chairman and Chief Executive Officer of the company.
  • Wil Saqueton purchased 5,000 shares on December 13 and currently holds 46,490 shares or less than 0.1% of the company. Wil Saqueton is Vice President & Chief Financial Officer of the company.
  • Chad Potter purchased 5,000 shares on December 6 and currently holds 44,651 shares or less than 0.1% of the company. Chad Potter is Vice President of the company.
  • Ian Delahunty purchased 8,400 shares on December 6 and currently holds 195,451 shares or less than 0.1% of the company. Ian Delahunty is Vice President, Business Development.

Financials

The company reported the third-quarter financial results on November 30 with the following highlights:

Revenue$33.0 million
Net income$7.0 million
Cash$26.2 million
Debt$32.8 million

Outlook

The company expects fourth quarter revenue to be between $30 million to $35 million; net income from continuing operations to be between a net loss of $3 million and net income of $3 million; total net income to be between $5 million to $10 million; and adjusted EBITDAX to be between $20 million to $25 million.

My analysis

The stock is trading close to its 52 -week lows. There have been six insider buy transactions and there have not been any insider sell transactions during the last 30 days. There is one analyst buy rating, three neutral ratings and 0 sell ratings for the company currently. The stock is trading at a forward P/E ratio of 10.33 and the company has a book value of $0.59 per share. The stock could be a good pick from the current level based on the fundamental picture.

Source: 3 Stocks With Recent Intensive Insider Buying