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Why do insider purchases 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 has outperformed the S&P 500 significantly over the past ten years: Russell 2000 index returns were 66% vs. the S&P 500's 25%.

Choosing the right small companies to invest in can be daunting: Where should you start? Insiders, especially executives and directors of small companies tend to know their company 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 (market cap <$300 million) 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 buying and selling 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 $20,000. 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 list (6/11-6/15), the most positive companies based on the financial records are Fidelity D&D Bancorp and Merchants Bancshares.

Cambium Learning Group, Inc. (ABCD) is a services company, specifically in the industry of education & training services. It has a market cap of $58.98 million. Over the past week, Cambium Learning Group had one insider who purchased a total of 17,504 shares at the total value of $20,083. Its price is only around 12.62% off its 52-week low. While the stock appears to possibly have bottomed, investors should proceed with caution. To summarize: This company appears a risky play.

Acorn Energy, Inc. (ACFN) is a technology company, specifically in the industry of computer peripherals. It has a market cap of $152.24 million. Over the past week, Acorn Energy had one insider who purchased a total of 10,000 shares at the total value of $80,269. One concern is the company isn't profitable at this point. The conclusion: Despite the insider purchase, I'm not very positive about the company's prospects.

Ares Commercial Real Estate Corp. (ACRE) is a financial company, specifically in the industry of diversified REITs. It has a market cap of $166.05 million. Over the past week, Ares Commercial Real Estate had one insider who purchased a total of 5,000 shares at the total value of $87,031. Given that its price is only 3.15% lower than its 52-week high, the overall market sentiment appears positive. I like Ares Commercial Real Estate's operating margin of 51.44%, a good sign for the company's financial health. Recently, the stock has not been traded actively. The final words: I see more negatives than positives in this company.

Adept Technology Inc. (ADEP) is an industrial goods company, specifically in the industry of diversified machinery. It has a market cap of $44.73 million. Over the past week, Adept Technology had one insider who purchased a total of 5,000 shares at the total value of $20,000. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. The trading volume has been consolidating recently. My thoughts: There aren't enough positive factors to buy this company based on the insider purchase alone.

Air T Inc. (AIRT) is a services company, specifically in the industry of air delivery & freight services. It has a market cap of $19.86 million. Over the past week, Air T had one insider who purchased a total of 5,620 shares at the total value of $46,333. Its stock price is about 16.89% below its 52-week high, usually a positive technical indicator on the company. To summarize: There aren't enough positive factors to buy this company based on insider purchase alone.

Build-A-Bear Workshop Inc. (BBW) is a services company, specifically in the industry of toy & hobby stores. It has a market cap of $67.12 million. Over the past week, Build-A-Bear Workshop had one insider who purchased a total of 50,000 shares at the total value of $217,150. Its price is near the bottom, at around 0.99% off its 52-week low. In summary: There aren't enough positive factors to buy this company based on insider purchase alone.

BCB Bancorp Inc. (BCBP) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $92.93 million. Over the past week, BCB Bancorp has two insiders who purchased a total of 4,200 shares at the total value of $42,012. Multiple insider purchase occasions are usually a positive sign. Its stock price is about 14.90% below its 52-week high, usually a positive technical indicator on the company. I like BCB Bancorp's operating margin of 26.44%, a good sign for the company's financial health. The final words: A lot of caution should be used while watching new progress.

Bacterin International Holdings, Inc. (BONE) is a healthcare company, specifically in the industry of biotechnology. It has a market cap of $58.97 million. Over the past week, Bacterin International Holdings has two insiders who purchased a total of 58,977 shares at the total value of $80,223. Multiple insider purchase occasions are usually a positive sign. One concern is the company isn't profitable at this point. The verdict: I would not buy the stock at this point.

Concurrent Computer Corporation (CCUR) is a technology company, specifically in the industry of computer based systems. It has a market cap of $34.58 million. Over the past week, Concurrent Computerration had two insiders who purchased a total of 100,000 shares at the total value of $375,000. Multiple insider purchase occasions are usually a positive sign. One concern is the company isn't profitable at this point. The conclusion: There aren't enough positive factors to buy this company based on insider purchase alone.

Chemung Financial Corp. (CHMG) is a financial company, specifically in the industry of regional - Pacific banks. It has a market cap of $116.64 million. Over the past week, Chemung Financial had one insider who purchased a total of 11,900 shares at the total value of $300,475. Given that its price is only 2.88% lower than its 52-week high, the overall market sentiment appears positive. I like Chemung Financial's operating margin of 33.89%, a good sign for the company's financial health. What to do: This stock is OK for your watch list, but not particularly appealing based on its overall financial records.

CryoLife Inc. (CRY) is a healthcare company, specifically in the industry of medical appliances & equipment. It has a market cap of $135.57 million. Over the past week, CryoLife had one insider who purchased a total of 25,000 shares at the total value of $119,825. Its stock price is about 18.11% below its 52-week high, usually a positive technical indicator on the company. The verdict: I do not see enough evidence for establishing a position.

Continental Materials Corp. (CUO) is an industrial goods company, specifically in the industry of diversified machinery. It has a market cap of $19.92 million. Over the past week, Continental Materials had one insider who purchased a total of 1,697 shares at the total value of $20,372. Its price is near the bottom, at around 15.55% off its 52-week low. One concern is the company isn't profitable at this point. The conclusion: I would not buy the stock at this point.

CytRx Corporation (CYTR) is a healthcare company, specifically in the industry of biotechnology. It has a market cap of $87.57 million. Over the past week, CytRxration had one insider who purchased a total of 117,737 shares at the total value of $451,148. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this micro-cap. It can be positive because ignored stocks tend to be undervalued. The conclusion: There aren't enough positive factors to buy this company based on insider purchase alone.

Ambassadors Group Inc. (EPAX) is a services company, specifically in the industry of education & training services. It has a market cap of $87.88 million. Over the past week, Ambassadors Group had one insider who purchased a total of 50,865 shares at the total value of $253,464. To summarize: There aren't enough positive factors to buy this company based on insider purchase alone.

Crexendo, Inc. (EXE) is a technology company, specifically in the industry of internet service providers. It has a market cap of $40.37 million. Over the past week, Crexendo had one insider who purchased a total of 170,000 shares at the total value of $632,000. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. The conclusion: There aren't enough positive factors to buy this company based on the insider purchase alone.

Fidelity D&D Bancorp Inc. (OTCQB:FDBC) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $45.72 million. Over the past week, Fidelity D&D Bancorp had three insiders who purchased a total of 2,768 shares at the total value of $52,463. Multiple insider purchase occasions are usually a positive sign. I like Fidelity D&D Bancorp's operating margin of 29.74%, a good sign for the company's financial health. My thoughts: The company looks appealing.

Granite City Food & Brewery Ltd. (OTCPK:GCFB) is a services company, specifically in the industry of restaurants. It has a market cap of $10.24 million. Over the past week, Granite City Food & Brewery Ltd. had four insiders who purchased a total of 12,500,000 shares at the total value of $26,000,000. Multiple insider purchase occasions are usually a positive sign. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this micro-cap. It can be positive because ignored stocks tend to be undervalued. In conclusion: This company appears a risky play.

Giga-tronics Inc. (GIGA) is a technology company, specifically in the industry of scientific & technical instruments. It has a market cap of $5.13 million. Over the past week, Giga-tronics had one insider who purchased a total of 27,246 shares at the total value of $29,553. Its price is near the bottom, at around 14.61% off its 52-week low. One concern is the company isn't profitable at this point. To summarize: There isn't enough financial evidence to back up a bullish case for this company.

Geeknet, Inc. (GKNT) is a technology company, specifically in the industry of internet software & services. It has a market cap of $115.41 million. Over the past week, Geeknet saw insiders purchase a total of 6,209 shares at the total value of $109,911. Multiple insider purchase occasions are usually a positive sign. One concern is the company isn't profitable at this point. My thoughts: I do not see enough evidence for establishing a position.

Guidance Software, Inc. (GUID) is a technology company, specifically in the industry of application software. It has a market cap of $218.22 million. Over the past week, Guidance Software had one insider who purchased a total of 49,411 shares at the total value of $406,982. I like this company as an undervalued stock, reflected in a low PEG ratio. One concern is the company isn't profitable at this point. To summarize: This is likely a stock very low on my watch list.

Handy & Harman Ltd. (HNH) is an industrial goods company, specifically in the industry of industrial equipment & components. It has a market cap of $167.95 million. Over the past week, one insider at Handy & Harman Ltd. purchased a total of 10,900 shares at the total value of $141,287. To summarize: Despite the insider purchase, I'm not very positive about the company's prospects.

Identive Group, Inc. (INVE) is a technology company, specifically in the industry of computer peripherals. It has a market cap of $63.24 million. Over the past week, one insider at Identive Group purchased a total of 50,000 shares at the total value of $50,200. Its price is near the bottom, at around 16.48% off its 52-week low. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. Trading is fairly active with this company lately, reflected in elevated volume. My thoughts: I see more negatives than positives in this company.

Isramco Inc. (ISRL) is a basic materials company, specifically in the industry of independent oil & gas. It has a market cap of $242.57 million. Over the past week, Isramco had one insider who purchased a total of 18,133 shares at the total value of $1,601,077. Given that its price is only 8.76% lower than its 52-week high, the overall market sentiment appears positive. To summarize: This is likely a stock very low on my watch list.

LeMaitre Vascular, Inc. (LMAT) is a healthcare company, specifically in the industry of medical instruments & supplies. It has a market cap of $86.54 million. Over the past week, LeMaitre Vascular had one insider who purchased a total of 4,000 shares at the total value of $22,000. Its price is near the bottom, at around 18.79% off its 52-week low. My thoughts: There isn't enough financial evidence to back up a bullish case for this company.

Lone Pine Resources Inc. (LPR) is a basic materials company, specifically in the industry of independent oil & gas. It has a market cap of $284.84 million. Over the past week, one insider at Lone Pine Resources purchased a total of 17,500 shares at the total value of $54,250. Its price is near the bottom, at around 16.72% off its 52-week low. I like Lone Pine Resources' operating margin of 26.35%, a good sign for the company's financial health. In conclusion: I may put it on my watch list, but definitely not on top of the list.

Ladenburg Thalmann Financial Services Inc. (LTS) is a financial company, specifically in the industry of national level investment brokerages. It has a market cap of $270.36 million. Over the past week, Ladenburg Thalmann Financial Services had one insider who purchased a total of 20,000 shares at the total value of $29,400. Recently, the stock has not been traded actively. In summary: I don't think the company's overall financial record to be very solid.

Merchants Bancshares Inc. (MBVT) is a financial company, specifically in the industry of regional - northeast banks. It has a market cap of $168.54 million. Over the past week, Merchants Bancshares had one insider who purchased a total of 1,000 shares at the total value of $26,738. Given that its price is only 10.32% lower than its 52-week high, the overall market sentiment appears positive. I like Merchants Bancshares' operating margin of 33.79%, a good sign for the company's financial health. To summarize: The company has a decent dividend payout that provides a minimum margin of safety. This is a relatively safe play.

New Century Bancorp Inc. (NCBC) is a financial company, specifically in the industry of regional - mid-Atlantic banks. It has a market cap of $33.87 million. Over the past week, New Century Bancorp had two insiders who purchased a total of 6,500 shares at the total value of $28,320. Multiple insider purchase occasions are usually a positive sign. Its stock price is about 4.00% below its 52-week high, usually a positive technical indicator on the company. I like New Century Bancorp's operating margin of 25.30%, a good sign for the company's financial health. The conclusion: It doesn't appear to be at a point of entry yet. Watch.

Newtek Business Services Inc. (NEWT) is a services company, specifically in the industry of business services. It has a market cap of $47.41 million. Over the past week, Newtek Business Services had two insiders who purchased a total of 16,000 shares at the total value of $20,782. Multiple insider purchase occasions are usually a positive sign. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this micro-cap. It can be positive because ignored stocks tend to be undervalued. To conclude: A lot of caution should be used while watching new progress.

Nanosphere, Inc. (NSPH) is a healthcare company, specifically in the industry of medical instruments & supplies. It has a market cap of $90.05 million. Over the past week, Nanosphere had one insider who purchased a total of 88,116 shares at the total value of $171,464. Given that Nanosphere's price is only 16.18% lower than its 52-week high, the overall market sentiment appears positive. One concern is the company isn't profitable at this point. My conclusion: There aren't enough positive factors to buy this company based on an insider purchase alone.

Novatel Wireless Inc. (NVTL) is a technology company, specifically in the industry of diversified communication services. It has a market cap of $81.01 million. Over the past week, Novatel Wireless had one insider who purchased a total of 50,000 shares at the total value of $119,350. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. In summary: I see more negatives than positives in this company.

Oneida Financial Corp. (ONFC) is a financial company, specifically in the industry of savings & loans. It has a market cap of $69.91 million. Over the past week, Oneida Financial had one insider who purchased a total of 4,740 shares at the total value of $46,926. Given that its price is only 10.41% lower than its 52-week high, the overall market sentiment appears positive. I like Oneida Financial's operating margin of 22.12%, a good sign for the company's financial health. In summary: I may put it on my watch list, but definitely not on top of the list.

Pope Resources LP (POPE) is an industrial goods company, specifically in the industry of lumber, wood production. It has a market cap of $238.22 million. Over the past week, Pope Resources LP had one insider who purchased a total of 3,000 shares at the total value of $154,924. Given that its price is only -3.20% lower than its 52-week high, the overall market sentiment appears positive. The verdict: The company has a decent dividend payout that provides a minimum margin of safety. There isn't enough financial evidence to back up a bullish case for this company.

Providence Service Corp. (PRSC) is a healthcare company, specifically in the industry of specialized health services. It has a market cap of $177.15 million. Over the past week, Providence Service had one insider who purchased a total of 132,828 shares at the total value of $1,840,508. Given that its price is only 14.49% lower than its 52-week high, the overall market sentiment appears positive. The final words: I don't think the company's overall financial record to be very solid.

Pizza Inn Holdings, Inc. (PZZI) is a services company, specifically in the industry of restaurants. It has a market cap of $19.33 million. Over the past week, Pizza Inn Holdings had two insiders who purchased a total of 14,309 shares at the total value of $32,695. Multiple insider purchase occasions are usually a positive sign. Its price is near the bottom, at around 9.63% off its 52-week low. The trading volume has been consolidating recently. In conclusion: I'd avoid this company at this price level.

Rimage Corporation (RIMG) is a technology company, specifically in the industry of data storage devices. It has a market cap of $83.72 million. Over the past week, Rimageration had four insiders who purchased a total of 10,500 shares at the total value of $82,776. Multiple insider purchase occasions are usually a positive sign. Its price is near the bottom, at around 11.17% off its 52-week low. The company is currently losing money operationally. Its business has to turn around for the situation to become more positive. To summarize: I don't think the company's overall financial record to be very solid.

Radiant Logistics, Inc. (RLGT) is a services company, specifically in the industry of air delivery & freight services. It has a market cap of $56.80 million. Over the past week, Radiant Logistics had one insider who purchased a total of 25,000 shares at the total value of $40,750. Its price is near the bottom, at around 10.26% off its 52-week low. My thoughts: I see more negatives than positives in this company.

Rosetta Stone, Inc. (RST) is a technology company, specifically in the industry of multimedia & graphics software. It has a market cap of $291.37 million. Over the past week, Rosetta Stone had one insider who purchased a total of 20,000 shares at the total value of $279,200. Given that its price is only 13.68% lower than its 52-week high, the overall market sentiment appears positive. One concern is the company isn't profitable at this point. The final words: Despite the insider purchase, I'm not very positive about the company's prospects.

Star Gas Partners, L.P. (SGU) is a basic materials company, specifically in the industry of oil & gas pipelines. It has a market cap of $247.15 million. Over the past week, Star Gas Partners L.P. had one insider who purchased a total of 13,427 shares at the total value of $52,689. Its price is near the bottom, at around 11.23% off its 52-week low. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this micro-cap. It can be positive because ignored stocks tend to be undervalued. My conclusion: This company appears a risky play.

Support.com, Inc. (SPRT) is a technology company, specifically in the industry of internet software & services. It has a market cap of $131.02 million. Over the past week, Support.com had one insider who purchased a total of 73,957 shares at the total value of $184,116. One concern is the company isn't profitable at this point. What to do: There isn't enough financial evidence to back up a bullish case for this company.

STAG Industrial, Inc. (STAG) is a financial company, specifically in the industry of REIT - industrial. It has a market cap of $228.10 million. Over the past week, STAG Industrial had one insider who purchased a total of 3,000 shares at the total value of $42,000. Its stock price is about 3.39% below its 52-week high, usually a positive technical indicator on the company. To conclude: I don't think the company's overall financial record to be very solid.

Summer Infant, Inc. (SUMR) is a consumer goods company, specifically in the industry of personal products. It has a market cap of $49.70 million. Over the past week, Summer Infant had one insider who purchased a total of 41,000 shares at the total value of $122,100. Its price is near the bottom, at around 0.36% off its 52-week low. Based on its PEG ratio of 0.33, the stock appears undervalued. The recent trading volume is below average. To summarize: I may put it on my watch list, but definitely not on top of the list.

Harris & Harris Group, Inc. (TINY) is a financial company, specifically in the industry of diversified investments. It has a market cap of $113.15 million. Over the past week, Harris & Harris Group had one insider who purchased a total of 8,000 shares at the total value of $28,124. One concern is the company isn't profitable at this point. To summarize: There isn't enough financial evidence to back up a bullish case for this company.

Tilly's, Inc. (TLYS) is a services company, specifically in the industry of apparel stores. It has a market cap of $295.60 million. Over the past week, Tilly's had one insider who purchased a total of 5,000 shares at the total value of $70,800. Its price is only around 7.30% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. The recent trading volume is below average. In conclusion: I don't think the company's overall financial record to be very solid.

Targacept, Inc. (TRGT) is a healthcare company, specifically in the industry of biotechnology. It has a market cap of $147.29 million. Over the past week, Targacept had one insider who purchased a total of 7,500 shares at the total value of $31,192. Its price is near the bottom, at around 8.66% off its 52-week low. I like this company as an undervalued stock, reflected in a low PEG ratio. One concern is the company isn't profitable at this point. The trading volume has been consolidating recently. In conclusion: I'd avoid this company at this price level.

Universal Stainless & Alloy Products Inc. (USAP) is a basic materials company, specifically in the industry of steel & iron. It has a market cap of $270.55 million. Over the past week, Universal Stainless & Alloy Products had one insider who purchased a total of 21,071 shares at the total value of $854,602. In summary: I'd avoid this company at this price level.

Food Technology Service Inc. (VIFL) is a services company, specifically in the industry of business services. It has a market cap of $19.28 million. Over the past week, Food Technology Service had one insider who purchased a total of 18,563 shares at the total value of $126,785. Its stock price is about 13.49% below its 52-week high, usually a positive technical indicator on the company. I like Food Technology Service's operating margin of 39.74%, a good sign for the company's financial health. The conclusion: A lot of caution should be used while watching new progress.

Olympic Steel Inc. (ZEUS) is a services company, specifically in the industry of basic materials wholesale. It has a market cap of $178.58 million. Over the past week, Olympic Steel had two insiders who purchased a total of 14,492 shares at the total value of $227,093. Multiple insider purchase occasions are usually a positive sign. Its price is near the bottom, at around 12.55% off its 52-week low. The sub-one PEG ratio suggests it's somewhat undervalued. My conclusion: It doesn't appear to be at a point of entry yet. Watch.

Source: Notable Micro Cap Insider Buys For The Week Of June 11-15