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Small cap companies are usually not followed by analysts, which makes choosing the right small-cap (market cap < $500 million) more difficult. Choosing the right small companies to invest can be daunting; however, instead purchases provide a good starting point. Insiders, especially executives and directors of small companies tend to know their company very well. Tracking their stock purchase activities can generate lucrative returns.

Below is a list of notable insider purchases of small-cap stocks filed at the Securities and Exchange Commission today. Following Seeking Alpha's small-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 $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 today's list, Synergy Resources is appealing.

Arbor Realty Trust Inc. (NYSE:ABR) is a financial company, specifically in the industry of REIT - diversified. It has a market cap of $122.90 million. According to today's SEC filing, Arbor Realty Trust has one insider who purchased a total of 5,000 shares at the total value of $25,475. One concern is the company isn't profitable at this point. Trading is fairly active with this company lately, reflected in elevated volume. In conclusion: The company has a decent dividend payout that provides a minimum margin of safety. It doesn't appear to be at a point of entry yet. Watch.

Casual Male Retail Group, Inc. (CMRG) is a services company, specifically in the industry of apparel stores. It has a market cap of $143.50 million. According to today's SEC filing, Casual Male Retail Group has one insider who purchased a total of 4,000 shares at the total value of $12,040. Its price is near the bottom, at around 9.06% off its 52-week low. I like this company with an undervalued stock, reflected in a low PEG ratio. I don't like Casual Male Retail Group's operating margin of 4.52%, a sign for the company's shaky financial health. 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: A lot of caution should be used while watching new progress.

Ecology & Environment, Inc. (NASDAQ:EEI) is an industrial goods company, specifically in the industry of waste management. It has a market cap of $48.80 million. According to today's SEC filing, Ecology & Environment has one insider who purchased a total of 1,000 shares at the total value of $11,500. Its price is only around 3.70% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. I don't like Ecology & Environment's operating margin of 4.58%, a sign for the company's shaky financial health. The conclusion: The company has a decent dividend payout that provides a minimum margin of safety. A lot of caution should be used while watching new progress.

Galectin Therapeutics, Inc. (NASDAQ:GALT) is a healthcare company, specifically in the industry of drugs - generic. It has a market cap of $33.60 million. According to today's SEC filing, Galectin Therapeutics has one insider who purchased a total of 7,500 shares at the total value of $15,750. Its price is only around 13.23% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. The trading volume has been consolidating recently.

Kips Bay Medical, Inc. (OTCQB:KIPS) is a healthcare company, specifically in the industry of medical instruments & supplies. It has a market cap of $16.30 million. According to today's SEC filing, Kips Bay Medical has one insider who purchased a total of 44,104 shares at the total value of $44,070. One concern is the company isn't profitable at this point. To conclude: I see more negatives than positives in this company.

Samson Oil & Gas Limited (NYSEMKT:SSN) is a basic materials company, specifically in the industry of oil & gas drilling & exploration. It has a market cap of $103.90 million. According to today's SEC filing, Samson Oil & Gas Limited has 2 insiders who purchased a total of 1,004,000 shares at the total value of $68,000. Multiple insider purchase occasions are usually a positive sign. Its price is only around 2.61% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. One concern is the company isn't profitable at this point. The recent trading volume is below average. The verdict: Despite insider purchase, I'm not very positive about the company's prospect.

Synergy Resources Corporation (NYSEMKT:SYRG) is a basic materials company, specifically in the industry of oil & gas equipment & services. It has a market cap of $140.10 million. According to today's SEC filing, Synergy Resources has one insider who purchased a total of 20,000 shares at the total value of $56,740. I like this company with an undervalued stock, reflected in a low PEG ratio. Synergy Resources Corporation has a very healthy operating margin of 38.42%. In conclusion: The company looks appealing.

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

Source: Small Caps Purchased By Insiders Today