An insider at one of the companies in my portfolio made a large buy of 500,000 new shares in recent filings. Given its rock bottom valuations and beaten down shares I think it is a smart move over the long term. Hopefully it also marks a bottom for the company's stock price.
"Och-Ziff Capital Management Group LLC (OZM) is a publicly owned investment manager. The firm provides investment advisory services for its clients. It invests in equity markets across the world." (Business description from Yahoo Finance)
Six reasons to pick up Och-Ziff at just over $7 a share:
- The stock is selling at just over five times forward earnings, a steep discount to its five year average (17.1).
- With the new purchase, insiders have picked up more than 900,000 net shares in the last seven months.
- OZM has a ridiculously low five year projected PEG (.27). It also sells at just three times operating cash flow.
- Consensus estimates for FY2012 have gone up 3% to $1.26 a share in the last two months, despite the downturn in the overall market.
- The stock yields 5% based on its last four quarterly dividend payments.
- The 8 analysts that cover the stock have a median price target of $12 a share, around 70% above its current stock price.
Disclosure: I am long OZM.