6 Month Insider Buy Follow-Up: How The 13 Stocks Did

by: The Keating Letter

This is the third in a series of six month follow-up articles for the insider buys that I highlight. The returns here from the 13 stocks purchased by CEOs and CFOs are miserable. Six of the 13 lost at least 30% and only two of the stocks increased in value. Even then, Glatfelter was the best performer going up 7.2%. For comparison, the S&P 500 went down by 10.9% over this period with dividends included.

Only one of these eight CEO buys outperformed the market. It wasn’t even close. Three of the stocks lost more than 30% during this time period and two more lost between 20% and 30%. The period measured was from March 3 to September 2. To see the original article highlighting the CEO buys, click here.

KKR Financial (KFN): KKR shares are down 16.8% over the past six months. On the bright side, the stock currently yields nearly 9%.

General Electric (NYSE:GE): GE dropped 23.4%. Unfortunately Jeff Immelt’s bullish buy and remarks at the time didn’t translate into outperformance for the stock.

CleanTech Innovations (OTCQB:CTEK): Shares are down 64.9% from March 3 to September 2 as the stock entered the pink sheets. CEO Lu Bei can’t be happy with the investment.

Excel Trust (NYSE:EXL): Despite encouraging guidance at the time, Excel Trust shares are trading down 14.7% including the two dividend payments over that period.

China TransInfo Technology (NASDAQ:CTFO): CEO Xia Shudong said he thought shares were undervalued when he announced a buying plan last December. They’re 33.3% cheaper over the six month period examined as the stocks of U.S. listed Chinese companies have been severely hurt this year.

CDI Corp. (NYSE:CDI): Shares are down 30.3% from March 3 to September 2. Their previous 3.6% dividend yield has now soared to 5%. Shares are near 52 week lows.

U.S. Gold Corp. (NYSE:UXG): U.S. Gold is down 22.2%. The CEO picked up shares at $6.50 in a secondary offering on February 24. Shares actually rose significantly between February 24 and March 2 and have now come back down below the offering price.

Glatfelter (NYSE:GLT): This is the only stock that rose during this time period. Glatfelter shares went up 7.2% over these six months. The stock continues to appear cheap with a solid dividend.

On the CFO side, we had five stocks with buys. This period measured was March 4 to September 3. Two of the five outperformed. The other three fell by at least 37% each. Not a good result. To see the original article highlighting the CFO buys, click here.

Stanley Furniture (NASDAQ:STLY): Stanley shares fell 37.3% from March 4 through September 3. The company continues to lose money, yes, but it may be worth reexamining the thesis for Stanley listed here. If anything, Jeffrey Saut’s idea on the name means much more now than it did then.

Amtech Systems (NASDAQ:ASYS): Shares were crushed over this six month period, falling by 57.4%. Solar-related stocks have taken a beating this year. Amtech shares have continued to fall despite a recent $5 million buyback announcement.

Six Flags Entertainment (NYSE:SIX): Six Flags was a rare winner in this article. Shares rose 1.1%, beating the market by 12%. Despite a tough economy, Six Flags has emerged as a strong company with solid earnings. Many analysts consider the stock significantly undervalued.

IEC Electronics (NYSEMKT:IEC): IEC shares were down 40.8%. Unfortunately when CFO Susan Topel-Samek bought shares six months ago, the stock was near 52 week highs. Today it has fallen significantly and her husband recently waded back into the markets to pick up company shares.

Black Hills Corp. (NYSE:BKH): Shares of this oil and natural gas explorer were down 1% over the six month period measured. With all things considered, this was a solid investment. This stock sports a 4.9% dividend yield and has increased dividends for 25 straight years.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.