When insiders buy shares on the open market, their companies are usually undervalued. Corporate insiders often have the inside track on their companies' prospects. Insiders probably wouldn't risk investing too much of their own money into their own companies unless they thought the stock might rise.
I screened for companies where at least one insider made an insider buy worth over $1 million for July 23rd. Here are three stocks that I found:
1. Isramco (ISRL) is an independent oil and natural gas company engaged in the exploration, development and production of oil and natural gas properties located onshore in the United States and ownership of various royalty interests in oil and gas concessions located offshore Israel and operate a well service company that provides well maintenance and work-over services, well completion and re-completion services.
Naphtha Holding purchased 24,500 shares on July 19th and currently holds 1,761,816 shares of the company. The company has 2.72 million shares outstanding which creates Naphtha Holding a 64.7% owner of the company. Naphtha Holding has purchased 121,688 shares of the company during 2012.
The company reported first quarter results on May 10th with the following highlights:
|Earnings||$0.57 per share|
|Shares outstanding||2.72 million|
|Market cap||$275 million|
The company has a $147 target price from the Point&Figure chart. I would be looking to be a buyer at $90 level.
2. Fuel Systems Solutions (FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration.
Kevin Douglas purchased 69,800 shares during July 19th - July 23th. Kevin Douglas is a 10% owner of the company according to SEC filings.
The company reported first quarter results on May 3rd with the following highlights:
|Net loss||$0.06 per share|
|Market cap||$309 million|
The company gave the following outlook at its first quarter earnings report:
The company continues to expect growth in European aftermarket products in particular in Italy, Poland and Turkey. The price differential of alternative fuels compared to traditional fuels is expected to continue to act as a very strong catalyst in particular in the European region. Revenue contributions are expected from OEM programs planned to begin to roll out in the second half of the year in Asian countries such as Thailand, China and India, as well as in certain Latin American automotive markets. Modest gross and operating margin expansion continues to be expected from changes in revenue mix and some operating leverage through cost control. Visibility with respect to the still-developing alternative fuel US automotive market will remain low until later in the year when scheduled models launch, with the bulk of revenue and margin contribution expected to be delivered in the second half of 2012.
The stock has a $11.5 price target from the Point&Figure chart. I am in no hurry to buy this stock and might wait till the target price is met.
3. Nanosphere (NSPH) develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene System, for multiplexed infectious disease, genetic, and ultra-sensitive protein testing. This easy-to-use platform offers laboratories a convenient, simple, and cost-effective solution for highly sensitive nucleic acid and protein testing.
Mark Slezak purchased 1,000,000 shares on July 19th through a public offering. Mr. Slezak has served as Chairman of the company's board of directors since 2000 and is also a 10% owner according to SEC filings. Mark Slezak has been a buyer since May 2012.
The company reported preliminary second quarter results on July 16th and announced a public offering on July 19th with the following highlights:
|Shares outstanding||54.2 million|
"Customer response to our gram-positive blood culture test that was cleared by the FDA at the very end of the second quarter has been encouraging," commented William Moffitt, Nanosphere's president and chief executive officer. "This is the first and only test that identifies bacteria and antimicrobial resistance genes from positive blood culture bottles within two and a half hours, as compared with up to two to three days using traditional culture methods. We expect this test will serve as a catalyst for accelerating placements and revenue growth in the coming quarters."
Nanosphere is currently developing a test for gram-negative blood cultures that will provide genus, species, and resistance detection on the same automated platform. These tests are part of a comprehensive infectious disease test menu, including the multiplexed Verigene RV+ respiratory virus test cleared by the FDA in 2011, as well as tests for C. difficile and a panel of enteric bacterial and viral pathogens that Nanosphere plans to submit for FDA clearance in 2012.
The stock has a $8.5 price target from the Point&Figure chart. I would be looking to be a buyer around $2 level.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in NSPH over the next 72 hours.