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 three months. I wrote the part I of "5 Companies Trading At A Forward P/E <5 With Recent Insider Buying" on July 31st and part II on August 3rd. Here are five additional companies that I found:
1. Golden Star Resources (GSS) holds the largest land package in one of the world's largest and most prolific gold producing regions. The company holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West Africa. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in Brazil in South America. Golden Star has approximately 259 million shares outstanding.
- Christopher Thompson purchased 200,000 shares on May 22nd and currently holds 300,000 shares of the company. Mr. Thompson, Chairman of the Board, has 40 years of experience in international mining including positions held with Anglo American Corporation (AAUKF.PK); investment banking institutions; Chairman of the World Gold Council and Chairman and CEO of Goldfields Limited.
- Samuel Coetzer purchased 19,000 shares on May 23rd and currently holds 40,465 shares of the company. Mr. Coetzer, Executive Vice President and Chief Operating Officer, is a mining engineer with over 24 years of international mining experience including Kinross (KGC), Xstrata (XSRAF.PK), Xstrata Coal, and Placer Dome.
- James Askew purchased 51,000 shares on May 23rd and currently holds 156,000 shares of the company. Mr. Askew is an engineer with many years experience managing and being a director of mining industry companies.
- William Yeates purchased 15,000 shares on May 24th and currently holds 50,000 shares of the company. Mr. Yeates is a Director of the company.
- Mitchel Wasel purchased 10,000 shares on May 23rd and currently holds 50,509 shares of the company. Mr. Wasel, Vice President Exploration, has acted in various roles with the company since 1993.
- Robert Doyle purchased 100,000 shares on May 23rd. Robert Doyle has more than 30 years experience in all facets of international resource exploration, development and production with companies, including Falconbridge, Lac Minerals, Bolivar Gold and most recently Medoro Resources of which he is a founder and director.
- Bruce Higson-Smith purchased 20,000 shares on May 22nd and currently holds 136,609 shares of the company. Bruce Higson-Smith, Senior Vice President, Finance and Corporate Development, is a qualified mining engineer with over 20 years experience in the mining business.
- Craig Nelsen purchased 100,000 shares on May 22nd and currently holds 150,000 shares of the company. Craig Nelsen is a geologist by education and training with over 30 years of experience in the mining business.
- Roger Palmer purchased 7,000 shares on May 22nd and currently holds 40,450 shares of the company. Roger Palmer, Vice President, Chief Financial Officer and Secretary, is responsible for accounting, financial controls, financial reporting, tax and budgeting.
The company reported the first quarter financial results on May 9th with the following highlights:
|Earnings||$0.035 per share|
On July 17, 2012, the company announced preliminary second quarter 2012 production results for its Bogoso/Prestea and Wassa/HBB operations.
The company produced a total of 85,183 ounces of gold in the second quarter ended June 30, 2012, well within its guidance range and nearly 10% higher than first quarter 2012 gold production of 77,725 ounces. During the first half of 2012, the company produced 162,908 ounces of gold.
During the remainder of 2012, the company expects to produce approximately 85,000 ounces of gold in the third quarter and approximately 90,000 ounces in the fourth quarter for a total of approximately 338,000 ounces for the full year.
Golden Star plans to release its second quarter financial results after the market closes on August 8, 2012.
The company has seen insider buying by nine different insiders during the last three months. I believe the current share price presents a buying opportunity.
2. The Hartford Financial Services Group (HIG) is a provider of insurance and wealth management services for millions of consumers and businesses worldwide.
Liam McGee purchased 25,088 shares on May 4th. Liam McGee is Chairman, President and Chief Executive Officer of The Hartford Financial Services Group.
The company reported the second quarter financial results on August 1st with the following highlights:
|Core earnings||$0.23 per share|
|Book value||$45.59 per share|
The company's 3Q12 core earnings outlook is $0.75 to $0.80 per diluted share.
The stock has a $8 price target from the Point&Figure chart. I am skeptical that the price target will be reached.
3. Hewlett-Packard (HPQ) manufactures personal computers and printers, as well as provides software and IT infrastructure services.
- Raymond Lane purchased 46,400 shares on June 5th and currently holds 248,392 shares of the company. Mr. Lane has served as HP's Executive Chairman since September 2011.
- Ralph Whitworth purchased 5,051,265 shares through May 31st- June 1st and 13,148,735 shares through May 25-30th. Ralph Whitworth currently holds 34,534,517 shares of the company. Mr. Whitworth has been Director of the company since 2011.
The company reported second quarter (ending April 30th) financial results on May 23rd with the following highlights:
|Net earnings per share||$0.80|
For the third quarter of fiscal 2012, HP estimates non-GAAP diluted EPS to be in the range of $0.94 to $0.97 and GAAP diluted EPS to be in the range of $0.00 to $0.03.
Third quarter fiscal 2012 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.94 per share, related primarily to the amortization and impairment of purchased intangible assets, restructuring charges, and acquisition-related charges.
For the full year fiscal 2012, HP now estimates non-GAAP diluted EPS to be in the range of $4.05 to $4.10 and GAAP diluted EPS to be in the range of $2.25 to $2.30.
Full year fiscal 2012 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $1.80 per share, related primarily to the amortization and impairment of purchased intangible assets, restructuring charges and acquisition-related charges.
The stock has a $5 price target from the Point&Figure chart. I am skeptical that the price target will be reached. The company will report the third quarter financial results on August 22nd.
4. Houston American Energy Corp. (HUSA) is an independent energy company with interests in oil and natural gas wells and prospects. The company's business strategy includes a property mix of producing and non-producing assets with a focus on Colombia, Texas and Louisiana.
The company announced the first quarter results on May 10th with the following highlights:
|Net loss||$0.66 per share|
The stock could have hit the bottom. The company has not provided any outlook for the remainder of the year.
5. KKR Financial Holdings (KFN) is a leading global investment firm with $61.5 billion in assets under management as of June 30, 2012. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments.
- William Sonneborn purchased 10,000 shares on May 15th and currently holds 396,704 shares of the company. Mr. Sonneborn joined KKR in 2008 and is head of KKR Asset Management and CEO of KKR Financial Holdings.
- Paul Hazen purchased 33,967 shares on May 10th and currently holds 587,306 shares of the company. Mr. Hazen is Director of the company.
The company reported the second quarter financial results on July 27th with the following highlights:
|GAAP net income||$146 million|
|Book value||$6.5 billion|
The stock has a $14.5 price target from the Point&Figure chart. I believe the target price is achievable during the next 12-24 months.