Each week I highlight significant purchases made by CFOs. This week, we have 6 stocks with CFO buys of at least $20,000. I believe those CFO purchases, and other management purchases, are better indicators than director buys, because managers carry out the day-to-day activities and have a better understanding of potential catalysts. The CFO in particular should have the best handle of the company’s financial situation. That doesn’t mean the CFO can’t be caught up in emotion as well, just like other investors, so use this list as a starting point for research.
Below are the 6 stocks with CEO buys of at least $20,000 in the past week:
Conn’s (CONN): Conn’s is a specialty retailer, primarily operating in Texas. I highlighted them here because their new interim CEO made a large purchase on April 4. CFO Michael Poppe followed that up with a $50,100 purchase of company shares the next day. This 10,466 share purchase brings his total holdings up to 15,574. His 2010 compensation is $345,000 and he hasn’t bought shares since 2009, so this buy is out of the ordinary.
Xenith Bankshares (XBKS): Xenith Bankshares is a tiny, $26 million market cap bank based in Virginia. They operate four branches. The company had a stock offering completed on April 4 with shares priced at $4.25. Members of the board and management participated. CFO Thomas Osgood bought 5,000 shares and now holds 48,500 shares in total.
Comtech Telecommunications (CMTL): I also highlighted Comtech in the recent CEO buy article. CFO Michael Porcelain joined CEO Fred Kornberg in buying shares on the open market. Porcelain bought 1,100 shares on April 1 for $27.42. His total holdings are now 32,405 shares. Comtech has an excellent balance sheet and impressive earnings relative to their valuation.
Zoom Technologies (ZOOM): Zoom is a small, $52 million market cap Chinese manufacturer primarily focused on cell phone technology. CFO Anthony Chan bought $63,800 worth of shares on April 1. This essentially doubled his holdings and is the first insider buy on the open market for the company since 2005.
Emclaire Financial (EMCF): Emclair is another tiny, $26 million market cap bank. Volume here is virtually non-existent, so be very, very careful if you have interest. Emclaire had an equity offering on March 31 that members of the board, the CEO and CFO participated in. Shares were priced at $15.95. CFO Matthew Lucco bought 1,600 shares and now owns 2,600 shares in total. Emclaire is a profitable bank with a 3.7% dividend yield. They raised the dividend by 14.3% earlier this year. This offering was a bullish indicator for the company.
TeamStaff (TSTF): TSTF provides staffing services to the United States Department of Veterans Affairs and the other U.S. governmental entities. The stock price is about a quarter of what it was in 2009, and TeamStaff is essentially a penny stock. The market cap is only $3 million. Management purchased shares from the company on March 31 and raised $150,000 for the company. CFO John Kahn bought $25,000 worth of shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.