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 in their own companies unless they thought the stock might rise.
I screened for companies where at least one insider made a buy worth over $200,000 filed on August 2nd. Here are five stocks that I found:
1. Symantec (SYMC) protects the world's information, and is the global leader in security, backup and availability solutions. The company's innovative products and services protect people and information in any environment -- from the smallest mobile device, to the enterprise data center, to cloud-based systems. Symantec's industry-leading expertise in protecting data, identities and interactions gives its customers confidence in a connected world.
Stephen Bennett purchased 89,300 shares on July 31st and currently controls 137,919 shares of the company. Mr. Bennett joined Symantec's board of directors in February 2010 and became chairman in 2011.
The company reported the results of its first quarter of fiscal year 2013, ended June 29, 2012 with the following highlights:
|Net income||$0.24 per share|
Second quarter fiscal year 2013 guidance
- GAAP Revenue is estimated between $1.635 billion and $1.665 billion.
- GAAP diluted earnings per share are estimated between $0.15 and $0.19 as compared to $0.24 in the year ago period.
I believe a pull back to the $14 level could be a good entry point for the stock. The stock was upgraded to buy by MKM Partners on July 25.
2. Hyperion Therapeutics (HPTX) is a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. Hyperion Therapeutics is developing Ravicti (glycerol phenylbutyrate) for two orphan indications: urea cycle disorders and hepatic encephalopathy.
- Panorama Capital purchased 550,000 shares on July 31st and currently holds 1,860,597 shares of the company. The shares were purchased trough the initial public offering. The company has 15.8 million shares outstanding which makes Panorama Capital a 12% owner of the company.
- New Enterprise Associates purchased 500,000 shares on July 31st and currently holds 2,884,221 shares of the company. The shares were purchased trough the initial public offering. The company has 15.8 million shares outstanding which makes New Enterprise Associates a 18% owner of the company.
The company's financial highlights for the first quarter of 2012:
|Net loss||$11.9 million|
|Shares outstanding||10.4 million|
The company received $46.5 million from the initial public offering on July 27th by offering 5 million additional shares.
- Under the Prescription Drug User Fee Act the FDA is currently due to notify the company regarding Ravicti's approval status by October 23, 2012.
- The company currently expects to commercially launch Ravicti in the first half of 2013.
The stock started trading on July 27th. I believe the stock could have a runup to the October 23rd FDA approval date of Ravicti.
3. Wilhelmina International (WHLM.OB) provides traditional, full-service fashion model and talent management services, specializing in the representation and management of models, entertainers, artists, athletes and other talent to various customers and clients, including retailers, designers, advertising agencies and catalog companies.
Newcastle Partners purchased 14,550,047 shares on July 31st and currently holds 48,614,513 shares of the company. The company filed a prospectus on May 16th to sell up to 95 million shares from time to time. I believe these shares were purchased through this secondary offering. According to the prospectus the company had 129 million shares outstanding which would make Newcastle Partners a 33% owner of the company.
The company's first quarter financial highlights include:
|Net income||$0.2 million|
On July 31, 2012 the company gave preliminary second quarter results:
The company is poised to report that, for the quarter ended June 30, 2012, gross billings decreased approximately $0.8 million, or 5.2%, respectively to $14.5 million, compared to $15.3 million for the quarter ended June 30, 2011.
The company's revenue and earnings look relatively flat compared to last year's results. I am in no hurry to initiate a position in this stock currently.
4. Park National Corporation (PRK) is a $7.0 billion bank holding company headquartered in Newark, Ohio. Park consists of 11 community banking divisions across Ohio and 2 specialty finance companies.
The company reported the second quarter financial results on July 23rd with the following highlights:
|Net income||$1.10 per share|
|Dividend||$0.94 per share|
|Book value||$42.88 per share|
Management expects the company will earn $90-$94 million in 2012. The company has 15.4 million shares outstanding which creates an earnings estimate of $6 per share.
The stock has a $91 price target from the Point&Figure chart. I believe the target price is achievable during the next 12-24 months.
5. Opko Health (OPK) is a publicly traded healthcare company involved in the discovery, development, and commercialization of pharmaceutical products, vaccines and diagnostic products.
Phillip Frost purchased 200,000 shares on August 1st and currently controls 130,182,900 shares of the company. The company has 297,543,066 shares outstanding, which makes Mr. Frost a 43.6% owner of the company. Mr. Frost is the CEO and Chairman of the company. Philip Frost has been a buyer almost everyday this year. Mr. Frost's net worth is $2.3 billion as of March 2012.
The company reported its first quarter results on May 10 with the following highlights:
|Net loss per share||$0.03|
|Cash per share||$0.21|
- The company expects to begin marketing its test for Alzheimer's disease in 2013. The company believes that this test could initially be useful in stratifying patients for ongoing clinical trials of potential Alzheimer's drugs, as well as to confirm the diagnosis in a clinical setting and to track the progression of the disease or effectiveness of a therapeutic in a clinical trial.
- The company has already obtained a CE Mark for its point-of-care diagnostic test for prostate specific antigen (PSA) using its system in Europe and the company intends to launch the PSA test in Europe in the second half of 2012.
- In December 2011, the company commenced a multi-center study in the U.S. for the PSA test, which is designed for 510(k) clearance and potential waiver under The Clinical Laboratory Improvement Amendments of 1988. The company intends to submit its application to the Food and Drug Administration for clearance of the PSA test in 2012 and expects to begin marketing the test in the U.S. in 2013.
The company has several upcoming catalysts for 2012 and 2013. Phillip Frost has purchased 685,000 shares during the last 5 trading days which is more than he has been buying before.
Disclosure: I am long OPK.