More Insider Buying at Jupitermedia Corporation

There was another insider buy reported Thursday at Jupitermedia Corporation (JUPM).

click chart to view full sized chart courtesy of Stockcharts.com

JupiterMedia is not a cheap stock on PE and PEG, but you have to take notice of a stock when insiders keep buying it, especially AFTER it has made a major move from under $1.00 to over $20 before correcting (we hope) to less than $4. Perhaps the very low price/sales and price/book ratio is what has insiders buying?

Current valuation metrics from Yahoo!:

• Market Cap (intraday): 134.75M
• Enterprise Value (27-Dec-07): 216.23M
• Trailing P/E (ttm, intraday): N/A
• Forward P/E (fye 31-Dec-08) : 32.42
• PEG Ratio (5 yr expected): 8.48
• Price/Sales (ttm): 1.13
• Price/Book (mrq): 0.66
• Enterprise Value/Revenue (ttm): 1.56
• Enterprise Value/EBITDA (ttm): 8.954

Classification of Insider

Dir/10%/OFCR/ Chair & CEO

Name: Alan Meckler

• $15k = Value of I-Buy trade(s)
• 4.0k = Number of Shares
• $3.64 = Average Price Paid
• $3.74 = Recent Stock Price (delayed)
• 112k = Average Daily Volume (composite timeframe)
• $131M = Company Market Capitalization
• 2007-12-24 = Purchase Date
• 2007-12-27 = Filing Date

Form Four Document (top link on page -- ".html"):

SEC Main Page for Form 4 Filings.

click to view full sized chart courtesy of Stockcharts.com

Insider selling is not nearly as important to monitor as insider buying.

From SEC Form 4 "Explanation of Responses":

1. Mr. Meckler now indirectly owns 3,771,973 shares: 1,328,013 shares held in trusts for the benefit of Mr. Meckler's four children and over which Mr. Meckler exercises investment control, 1,046,125 shares are held in the Alan M. Meckler 2007 Grantor Retained Annuity Trust over which Mr. Meckler exercises investment but not voting control, 953,875 shares are held in the Alan M. Meckler 2007 Grantor Retained Annuity Trust II over which Mr. Meckler exercises investment but not voting control, 259,000 shares donated by Mr. Meckler to the Meckler Foundation, a non-profit charitable foundation founded by Mr. Meckler and for which he acts as a trustee, 11,900 shares purchased by the Meckler Foundation, 114,960 shares purchased by Mr. Meckler's wife and 58,100 shares held in trust for the benefit of Mr. Meckler's mother and over which he exercises investment control.

Other recent insider buys

• 2007-11-26 = Purchase Date
  Dir/10%/OFCR/ Chair & CEO = Classification of Insider
  $35k = Value of I-Buy trade(s)
  10k = Number of Shares
  3.47 = Average Price Paid


• 2007-11-26 = Purchase Date
  
  • Dir/OFCR/ Pres. & COO = Classification of Insider
  • $35k = Value of I-Buy trade(s)
  • 10k = Number of Shares
  • 3.47 = Average Price Paid


• 2007-11-15 = Purchase Date
  
  • Dir/10%/OFCR/ Chair & CEO = Classification of Insider
  • $17k = Value of I-Buy trade(s)
  • 4.6k = Number of Shares
  • 3.72 = Average Price Paid


• 2007-11-14 = Purchase Date
  
  • Dir/ = Classification of Insider
  • $183k = Value of I-Buy trade(s)
  • 50k = Number of Shares
  • 3.69 = Average Price Paid


• 2007-11-13 = Purchase Date
  
  • Dir/10%/OFCR/ Chair & CEO = Classification of Insider
  • $31k = Value of I-Buy trade(s)
  • 8.1k = Number of Shares
  • 3.78 = Average Price Paid

Disclosure: I bought some shares last month at $3.60 after the 11/13 and 11/16 insider buys.

Comments

[DanielJacome]

You are MISSING the bigger picture, dude!

In March 07, JUPM got into serious talks with GYI, they broke down.

Now with JUPM down where it is, I have to believe GYI is thinking about a deal again.

In early 07 - The CEO of JUPM was approached by GYI and they got pretty far in deal talk before it all splattered.

I know JUPM has some "aggressive accounting" (bad debt reserve depreciation policy, cost allocation to goodwill to mitigate exp on PnL), so that could be one reason the deal fell through.

Net net, I like this post and I will be watching JUPM like a hawk, possibly rolling the dice and picking some up Monday.