5 Companies Trading At A Forward P/E <5 With Recent Insider Buying - Part II

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Includes: END, FES, GME, GNW, GPRE
by: Markus Aarnio

I screened with Finviz for companies that trade with a forward P/E of less than 5 and checked if the companies had any insider buys during the last 3 months. I wrote the part I of "5 Companies Trading At A Forward P/E <5 With Recent Insider Buying" on July 31st. Here are five additional companies that I found:

1. Endeavour International Corporation (NYSE:END) is an independent oil and gas company engaged in the exploration, development and acquisition of energy reserves in the United States and United Kingdom. The company has three producing fields in the United Kingdom, including Alba, Bittern and Enoch as well as three large development projects: Bacchus, Greater Rochelle and Columbus.

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Insider buys

Gmt Capital Corp purchased 650,000 shares on June 13th and currently holds 5,079,414 shares of the company. The shares were purchased through a secondary offering. Gmt Capital Corp is a 10% owner according to SEC filings.

Financials

The company reported the second quarter financial results on August 2nd, with the following highlights:

Revenue $23 million
Net loss $1.31 per share
Cash $94.6 million
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Outlook

William Transier, chairman, chief executive officer and president commented the second-quarter results:

"The last several months have seen Endeavour accomplish several of its goals for 2012. The completion of the acquisition of Alba was a major accomplishment for the Company. Alba is now the largest asset in our portfolio and provides a strong base of continuing production. The strong results from the second Bacchus well re-enforces our belief in the reservoir and its long-term potential. For the second half of the year, we remain focused on our remaining objectives including closing the acquisition of MacCulloch and Nicol and start-up of production at Rochelle."

Bret Jensen wrote on May 1st, 2012:

The company is expected to go from a loss of $1.41 a share in FY2011 to a gain of just over $2 in FY2012. In FY2013, analysts have EPS coming in at $3.39 a share.

My analysis

The stock is currently in a bullish looking consolidation pattern which could lead to a upside breakout. The company is poised to increase production this year with the new wells coming online.

2. Forbes Energy Services (NASDAQ:FES) is an independent oilfield services contractor that provides a broad range of drilling-related and production-related services to oil and natural gas companies, primarily onshore in Texas, Mississippi and Pennsylvania.

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Insider buys

  • Charles Forbes purchased 20,938 shares on June 26th and currently holds 2,554,650 shares of the company. Charles Forbes is Executive Vice President, Chief Operating Officer & Director of the company.
  • John Crisp purchased 10,000 shares on June 5th and currently holds 1,152,362 shares of the company. John Crisp is Chairman of the Board, President, Chief Executive Officer & Director of the company.

Financials

The company reported the first quarter financial results on May 15th with the following highlights:

Revenue $131.5 million
GAAP net income $0.20 per share
Cash $20.6 million
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Outlook

The analysts are expecting a $0.96 EPS for 2012 and a $0.92 EPS for 2012.

John Crisp, president and CEO of Forbes Energy Services, said:

"We have direct requests from customers for additional equipment and a waitlist for our new coiled tubing units, which we expect the first to be deployed in June. We believe demand will continue to trend upward and, as a result, expect high utilization and positive operating margins for the remainder of 2012."

My analysis

The stock looks like a good pick at current price. The company has delivered very impressive earnings and revenue growth during the past 2-3 years.

3. GameStop Corp. (NYSE:GME) is the world's largest multichannel video game retailer. GameStop's retail network and family of brands include 6,614 company-operated stores in 15 countries worldwide and online at GameStop.com. The network also includes: Kongregate.com, a leading browser-based game site; Game Informer magazine, the leading multi-platform video game publication; Spawn Labs, a streaming technology company; and a digital PC game distribution platform available at GameStop.com/pc.

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Insider buys

  • Tony Bartel purchased 15,720 shares on May 23rd and currently holds 374,525 shares of the company. Tony Bartel is President of GameStop.
  • Paul Raines purchased 6,570 shares on May 21st and currently holds 546,012 shares of the company. Paul Raines is Chief Executive Officer of GameStop.

Financials

The company reported the first quarter financial results on May 17th, with the following highlights:

Revenue $2 billion
Earnings per share $0.54
Cash $329 million
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The company will report its second quarter financial results on August 16th.

Outlook

For the second quarter of fiscal 2012, GameStop expects comparable store sales to range from -11.0% to -5.0%. Diluted earnings per share are expected to range from $0.10 to $0.18.

The company maintains its previously announced full-year diluted earnings per share guidance range of $3.10 to $3.30. Full year comparable store sales are expected to range from -5.0% to flat.

My analysis

The stock has a $8 price target from the Point&Figure chart. With the current fundamentals I find it hard to believe we will reach it.

4. Genworth Financial (NYSE:GNW) is a leading financial security company serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers across 25 countries. It employs 6,000 people worldwide, boasting a diverse and talented team of professionals.

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Insider buys

  • William Bolinder purchased 3,000 shares on May 24th. Mr. Bolinder has served as a Director of Genworth Financial since October 2010.
  • James Riepe purchased 45,000 shares on May 21st and currently holds 68,000 shares of the company. Mr. Riepe has served as a Director of Genworth Financial since March 2006 and Non-Executive Chairman of the Board since May 2012.
  • James Parke purchased 25,000 shares on May 18th and currently holds 300,000 shares of the company. Mr. Parke has served as a Director of Genworth Financial since May 2004.
  • Michel Perreault purchased 2,000 shares on May 18th and currently holds 22,791 shares of the company. Michel Perreault serves as Senior Vice President - Chief Risk Officer of the company.
  • Thomas Moloney purchased 1,000 shares on May 11th and currently holds 4,000 shares of the company. Thomas Moloney has served as Director of Genworth Financial since October 2009.
  • Martin Klein purchased 15,000 shares on May 9th and currently holds 20,084 shares of the company. Martin Klein has been the company's Acting President and Acting Chief Executive Officer since May 2012 and has also been Senior Vice President-Chief Financial Officer since May 2011.

Financials

The company reported the second quarter financial results on July 31st with the following highlights:

Net income $0.16 per share
Book value $32.17 per share
Revenue $2.5 billion
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My analysis

The stock is currently at its 52 -week lows, which could present a buying opportunity. A total of six different insiders have bought shares during the last three months.

5. Green Plains Renewable Energy (NASDAQ:GPRE) is North America's fourth largest ethanol producer. The company markets and distributes approximately one billion gallons of renewable motor fuel on an annual basis. Green Plains owns and operates grain handling and storage assets and provides complementary agronomy services to local grain producers through its agribusiness segment. Green Plains owns BlendStar, a biofuels terminal operator with locations in the southern U.S. Green Plains is a joint venture partner in BioProcess Algae, which was formed to commercialize advanced photo-bioreactor technologies for growing and harvesting algal biomass.

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Insider buys

  • James Anderson purchased 5,000 shares on July 31st and currently holds 39,775 shares of the company. Mr. Anderson who has served as a Director since October 2008, also serves on the Board's Audit and Compensation Committees.
  • Jeffrey Briggs purchased 1,500 shares on May 9th and currently holds 121,641 shares of the company. Mr. Briggs joined the company as Chief Operating Officer in November 2009.
  • Steve Bleyl purchased 1,000 shares on May 1st and currently holds 111,475 shares of the company. Mr. Bleyl joined the company as Executive Vice President - Ethanol Marketing in October 2008.

Financials

The company reported the second quarter financial results on July 25th with the following highlights:

Revenue $870 million
Net loss $0.25 per share
Cash $137 million
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Outlook

The company is going to be profitable again in the fourth quarter according to the CEO Todd Becker during the second quarter earnings call:

As we noted in our earnings release yesterday, we have locked in approximately 40% of our ethanol margins for the fourth quarter at profitable levels. This combined with positive results from our non-ethanol operating income segments gives us the confidence to say that we believe we'll return to profitability in the fourth quarter. This estimate is based on the current Q4 curve combined with our lock volume. Obviously this change is daily, but at this point even with a weaker forward curve we are still projecting a good recovery in the fourth quarter helping neutralize to defensive third quarter.

My analysis

The stock is currently very close to its 52 -week lows. I believe the current price could present a buying opportunity.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in END over the next 72 hours.