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Why do insider purchase matters for small companies? Because small companies often have no analysts following them. This means choosing the right micro cap (market cap < $300 million) can be very profitable. In fact, the Russell 2000 index outperformed the S&P 500 significantly over the past ten years: Russell 2000 index returned 66% vs. S&P 500 25%.

Choosing the right small companies to invest can be daunting. Where should you start? Insiders, especially executives and directors of small companies, tend to know their companies very well. Tracking their stock purchase activities is a very good point to start for lucrative returns.

Below is a list of notable insider purchases of micro cap stocks during the past week, filed at the Securities and Exchange Commission. Following Seeking Alpha's micro-cap policy, all the stocks in the table are greater than $1 per share or $100 million market cap.

I have written a short analysis of each company's financial records. However, these are not buy and sell recommendations. It is also important to pay attention to how much the insiders buy, especially with respect to the size of their company and their regular income. I have filtered out those transactions with a total value of less than $10,000. As Peter Lynch pointed out in his book, One Up On Wall Street, insiders sell for various reasons, which is usually not very informative unless they are dumping shares like there is no tomorrow. Insiders buy for one reason: they are signaling that they have confidence in the company's future performance. Of course, insiders could be wrong. It is nevertheless a good starting point to add those stocks to watch list.

On this week's (4/30-5/4) list, the most positive companies based on the financial records are Community Partners Bancorp, Rurban Financial, and United Bancshares.

Air T Inc (NASDAQ:AIRT) is a services company, specifically in the industry of air delivery & freight services. It has a market cap of $22.94 million. Over the past week, Air T has one insider who purchased a total of 10301 shares at the total value of $98395. Its stock price is about 5.16% off its 52-week high, usually a positive technical indicator on the company. The trading volume has been consolidating recently. My thoughts: There isn't enough financial evidence to backup a bullish case for this company.

Ameriserv Financial Inc (NASDAQ:ASRV) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $59.96 million. Over the past week, Ameriserv Financial has one insider who purchased a total of 16587 shares at the total value of $49934. Given that its price is only 5.48% off its 52-week high, the overall market sentiment appears positive. I like Ameriserv Financial's operating margin of 22.20%, a good sign for the company's financial health. The verdict: A lot of caution should be used while watching new progress.

Bridge Bancorp Inc (NASDAQ:BDGE) is a financial company, specifically in the industry of regional - Northeast banks. It has a market cap of $160.80 million. Over the past week, Bridge Bancorp has one insider who purchased a total of 3583 shares at the total value of $67181. Given that its price is only 15.82% off its 52-week high, the overall market sentiment appears positive. Bridge Bancorp Inc has a very healthy operating margin of 37.21%. In conclusion: It doesn't appear to be at a point of entry yet. Watch.

Berkshire Bancorp Inc (NASDAQ:BERK) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $97.49 million. Over the past week, Berkshire Bancorp has one insider who purchased a total of 25388 shares at the total value of $170099. Given that its price is only 15.41% off its 52-week high, the overall market sentiment appears positive. I like Berkshire Bancorp's operating margin of 39.42%, a good sign for the company's financial health. In conclusion: This stock is OK for your watch list, but not particularly appealing based on its overall financial records.

Bank Of South Carolina Corp (NASDAQ:BKSC) is a financial company, specifically in the industry of regional - mid-Atlantic banks. It has a market cap of $49.64 million. Over the past week, Bank Of South Carolina has 4 insiders who purchased a total of 7304 shares at the total value of $81136. Multiple insider purchase occasions are usually a positive sign. Its stock price is about 5.34% off its 52-week high, usually a positive technical indicator on the company. I like Bank Of South Carolina's operating margin of 35.95%, a good sign for the company's financial health. To summarize: A lot of caution should be used while watching new progress.

Camden National Corp (NASDAQ:CAC) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $238.51 million. Over the past week, Camden National has one insider who purchased a total of 875 shares at the total value of $27870. Its stock price is about 17.67% off its 52-week high, usually a positive technical indicator on the company. I like Camden National's operating margin of 48.38%, a good sign for the company's financial health. My thoughts: I may put it on my watch list, but definitely not on top of the list.

Chicopee Bancorp Inc. (NASDAQ:CBNK) is a financial company, specifically in the industry of savings & loans. It has a market cap of $81.92 million. Over the past week, Chicopee Bancorp. has one insider who purchased a total of 900 shares at the total value of $12981. Its stock price is about 2.34% off its 52-week high, usually a positive technical indicator on the company. My conclusion: I would not buy the stock at this point.

Apa Enterprises Inc. (NASDAQ:CLFD) is a technology company, specifically in the industry of communication equipment. It has a market cap of $56.45 million. Over the past week, Apa Enterprises. has one insider who purchased a total of 30000 shares at the total value of $132512. Apa Enterprises' price is near the bottom, at around 11.44% off its 52-week low. My thoughts: There aren't enough positive factors to buy this company based on insider purchase alone.

Clearone Communications Inc (NASDAQ:CLRO) is a technology company, specifically in the industry of communication equipment. It has a market cap of $41.30 million. Over the past week, Clearone Communications has one insider who purchased a total of 7500 shares at the total value of $31875. Its price is only around 14.94% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. The verdict: I'd avoid this company at this price level.

Commercial National Financial Corp (OTCQB:CNAF) is a financial company, specifically in the industry of regional - Midwest banks. It has a market cap of $71.50 million. Over the past week, Commercial National Financial has one insider who purchased a total of 500 shares at the total value of $12500. Its stock price is about 10.71% off its 52-week high, usually a positive technical indicator on the company. I like Commercial National Financial's operating margin of 51.30%, a good sign for the company's financial health. The trading volume has been consolidating recently. My thoughts: I may put it on my watch list, but definitely not on top of the list.

Center Bancorp Inc (NASDAQ:CNBC) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $167.08 million. Over the past week, Center Bancorp has one insider who purchased a total of 1400 shares at the total value of $14644. Its stock price is about 6.83% off its 52-week high, usually a positive technical indicator on the company. I like Center Bancorp's operating margin of 53.85%, a good sign for the company's financial health. To summarize: It doesn't appear to be at a point of entry yet. Watch.

Community Partners Bancorp (CPBC) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $47.27 million. Over the past week, Community Partners Bancorp has 3 insiders who purchased a total of 2700 shares at the total value of $15665. Multiple insider purchase occasions are usually a positive sign. Given that its price is only 2.62% off its 52-week high, the overall market sentiment appears positive. Community Partners Bancorp has a very healthy operating margin of 33.32%. In conclusion: The company appears attractive.

Continental Materials Corp (NYSEMKT:CUO) is a industrial goods company, specifically in the industry of diversified machinery. It has a market cap of $22.47 million. Over the past week, Continental Materials has one insider who purchased a total of 722 shares at the total value of $10201 . The company is current losing money operationally. Its business has to turnaround for the situation to become more positive. The recent trading volume is below average. The verdict: There isn't enough financial evidence to backup a bullish case for this company.

Codorus Valley Bancorp Inc (NASDAQ:CVLY) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $57.06 million. Over the past week, Codorus Valley Bancorp has one insider who purchased a total of 2395 shares at the total value of $32680. Given that its price is only 2.23% off its 52-week high, the overall market sentiment appears positive. I like Codorus Valley Bancorp's operating margin of 34.42%, a good sign for the company's financial health. The verdict: This stock is OK for your watch list, but not particularly appealing based on its overall financial records.

Famous Daves Of America Inc (NASDAQ:DAVE) is a services company, specifically in the industry of restaurants. It has a market cap of $79.57 million. Over the past week, Famous Daves Of America has one insider who purchased a total of 1500 shares at the total value of $14974. Its stock price is about 13.74% off its 52-week high, usually a positive technical indicator on the company. The sub-one PEG ratio suggests it's somewhat under valued. My conclusion: There isn't enough financial evidence to back up a bullish case for this company.

Digirad Corp (NASDAQ:DRAD) is a healthcare company, specifically in the industry of medical appliances & equipment. It has a market cap of $43.52 million. Over the past week, Digirad has one insider who purchased a total of 69425 shares at the total value of $155643. One concern is the company isn't profitable at this point. In conclusion: This company's financial evidence is relatively weak.

Fuelcell Energy Inc (NASDAQ:FCEL) is a industrial goods company, specifically in the industry of industrial electrical equipment. It has a market cap of $165.03 million. Over the past week, Fuelcell Energy has one insider who purchased a total of 20000000 shares at the total value of $30000000. The company is current losing money operationally. Its business has to turnaround for the situation to become more positive. The recent trading volume is below average. In conclusion: This company appears a risky play.

Fedfirst Financial Corp (NASDAQ:FFCO) is a financial company, specifically in the industry of savings & loans. It has a market cap of $40.83 million. Over the past week, Fedfirst Financial has one insider who purchased a total of 1000 shares at the total value of $14356. Its stock price is about 13.33% off its 52-week high, usually a positive technical indicator on the company. Fedfirst Financial Corp has a very healthy operating margin of 21.48%. Recently, the stock is traded fairly inactively. The verdict: I see more negatives than positives in this company.

First M & F Corporation (NASDAQ:FMFC) is a financial company, specifically in the industry of regional - southeast banks. It has a market cap of $39.67 million. Over the past week, First M & F has one insider who purchased a total of 12000 shares at the total value of $48960. Its stock price is about 19.22% off its 52-week high, usually a positive technical indicator on the company. I like First M & F's operating margin of 24.22%, a good sign for the company's financial health. To summarize: I may put it on my watch list, but definitely not on top of the list.

First Security Group Inc (NASDAQ:FSGI) is a financial company, specifically in the industry of savings & loans. It has a market cap of $4.96 million. Over the past week, First Security Group has one insider who purchased a total of 5000 shares at the total value of $16450 . The company is current losing money operationally. Its business has to turnaround for the situation to become more positive. To summarize: There isn't enough financial evidence to back up a bullish case for this company.

Green Plains Renewable Energy Inc. (NASDAQ:GPRE) is a basic materials company, specifically in the industry of specialty chemicals. It has a market cap of $225.85 million. Over the past week, Green Plains Renewable Energy. has 2 insiders who purchased a total of 2000 shares at the total value of $16119. Multiple insider purchase occasions are usually a positive sign. Its price is only around -1.17% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. My conclusion: This stock is OK for your watch list, but not particularly appealing based on its overall financial records.

Horizon Bancorp (NASDAQ:HBNC) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $126.95 million. Over the past week, Horizon Bancorp has one insider who purchased a total of 1000 shares at the total value of $24750. Its stock price is about 2.23% off its 52-week high, usually a positive technical indicator on the company. I like Horizon Bancorp's operating margin of 32.59%, a good sign for the company's financial health. To summarize: This stock is not particularly appealing based on its overall financial records.

Hutchinson Technology Inc (NASDAQ:HTCH) is a technology company, specifically in the industry of data storage devices. It has a market cap of $52.70 million. Over the past week, Hutchinson Technology has 3 insiders who purchased a total of 37500 shares at the total value of $80100. Multiple insider purchase occasions are usually a positive sign. The company is current losing money operationally. Its business has to turnaround for the situation to become more positive. My conclusion: There aren't enough positive factors to buy this company based on insider purchases alone.

Isramco Inc (NASDAQ:ISRL) is a basic materials company, specifically in the industry of independent oil & gas. It has a market cap of $235.59 million. Over the past week, Isramco has one insider who purchased a total of 7262 shares at the total value of $676743. Given that its price is only 11.38% off its 52-week high, the overall market sentiment appears positive. In conclusion: This company appears a risky play.

Jacksonville Bancorp Inc. (NASDAQ:JXSB) is a financial company, specifically in the industry of savings & loans. It has a market cap of $31.06 million. Over the past week, Jacksonville Bancorp. has one insider who purchased a total of 838 shares at the total value of $13399. Its stock price is about 8.51% off its 52-week high, usually a positive technical indicator on the company. I like Jacksonville Bancorp.'s operating margin of 33.66%, a good sign for the company's financial health. The recent trading volume is below average. To summarize: I would watch this stock with caution.

Monarch Financial Holdings Inc. (NASDAQ:MNRK) is a financial company, specifically in the industry of regional - mid-Atlantic banks. It has a market cap of $59.51 million. Over the past week, Monarch Financial Holdings. has one insider who purchased a total of 1200 shares at the total value of $11880. Given that its price is only 2.93% off its 52-week high, the overall market sentiment appears positive. My thoughts: I see more negatives than positives in this company.

Midsouth Bancorp Inc (NYSE:MSL) is a financial company, specifically in the industry of regional - southeast banks. It has a market cap of $136.99 million. Over the past week, Midsouth Bancorp has 2 insiders who purchased a total of 11000 shares at the total value of $156170. Multiple insider purchase occasions are usually a positive sign. Given that its price is only 9.72% off its 52-week high, the overall market sentiment appears positive. My conclusion: This company appears a risky play.

Maxwell Technologies Inc (NASDAQ:MXWL) is a technology company, specifically in the industry of diversified electronics. It has a market cap of $265.27 million. Over the past week, Maxwell Technologies has 3 insiders who purchased a total of 32000 shares at the total value of $309149. Multiple insider purchase occasions are usually a positive sign. Maxwell Technologies' price is near the bottom, at around 4.20% off its 52-week low. Over the past ten days, Maxwell Technologies has seen significantly higher than average trading volume. In conclusion: I may put it on my watch list, but definitely not on top of the list.

Orrstown Financial Services Inc (NASDAQ:ORRF) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $60.57 million. Over the past week, Orrstown Financial Services has 2 insiders who purchased a total of 2790 shares at the total value of $21772. Multiple insider purchase occasions are usually a positive sign. Orrstown Financial Services' price is near the bottom, at around 0.94% off its 52-week low. The company is current losing money operationally. Its business has to turnaround for the situation to become more positive. The verdict: I don't think the company's overall financial record to be very solid.

Pope Resources Ltd Partnership (NASDAQ:POPE) is a industrial goods company, specifically in the industry of lumber, wood production. It has a market cap of $194.78 million. Over the past week, Pope Resources Ltd Partnership has one insider who purchased a total of 2000 shares at the total value of $90044 . Given that its price is only 10.84% off its 52-week high, the overall market sentiment appears positive. In conclusion: The company has a decent dividend payout that provides a minimum margin of safety. This company appears a risky play.

Rurban Financial Corp (RBNF) is a financial company, specifically in the industry of regional - Midwest banks. It has a market cap of $26.83 million. Over the past week, Rurban Financial has 2 insiders who purchased a total of 2625 shares at the total value of $12206 . Multiple insider purchase occasions are usually a positive sign. Given that its price is only 6.44% off its 52-week high, the overall market sentiment appears positive. I like Rurban Financial's operating margin of 21.87%, a good sign for the company's financial health. My conclusion: The company appears attractive.

Seachange International Inc (NASDAQ:SEAC) is a technology company, specifically in the industry of application software. It has a market cap of $275.48 million. Over the past week, Seachange International has one insider who purchased a total of 20000 shares at the total value of $166958. The sub-one PEG ratio suggests it's somewhat under valued. To summarize: Despite insider purchase, I'm not very positive about the company's prospects.

Taser International Inc (NASDAQ:TASR) is a industrial goods company, specifically in the industry of aerospace/defense products & services. It has a market cap of $265.16 million. Over the past week, Taser International has 2 insiders who purchased a total of 32000 shares at the total value of $146880. Multiple insider purchase occasions are usually a positive sign. My thoughts: I would not buy the stock at this point.

United Bancshares Inc (NASDAQ:UBOH) is a financial company, specifically in the industry of money center banks. It has a market cap of $29.42 million. Over the past week, United Bancshares has 3 insiders who purchased a total of 4233 shares at the total value of $37118. Multiple insider purchase occasions are usually a positive sign. Given that its price is only 10.39% off its 52-week high, the overall market sentiment appears positive. My conclusion: The company appears attractive.

West Bancorporation Inc (NASDAQ:WTBA) is a financial company, specifically in the industry of regional - southwest banks. It has a market cap of $163.07 million. Over the past week, West Bancorporation has one insider who purchased a total of 2000 shares at the total value of $18920. Given that its price is only 10.42% off its 52-week high, the overall market sentiment appears positive. I like West Bancorporation's operating margin of 49.01%, a good sign for the company's financial health. The verdict: I may put it on my watch list, but definitely not on top of the list.

Source: Notable Micro Cap Company Insider Buys Last Week