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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 6th. Here are five stocks that I found:

1. Dole Food Company (DOLE) engages in sourcing, growing, processing, marketing, and distributing fresh fruits and vegetables, and food products to wholesale, retail, and institutional customers worldwide. It operates in three segments: Fresh Fruit, Fresh Vegetables, and Packaged Foods.


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Insider buys

David Murdock purchased 411,600 shares on August 2-3rd, 617,400 shares on July 30 - August 1st and 278,800 shares on July 24-25th. Mr. Murdock has beneficial ownership of an aggregate of 53,017,800 shares or 59.6% of the company's stock. Mr. Murdock, 86, joined Dole as Chairman of the Board and Chief Executive Officer in July 1985.

Financials

The company reported the second-quarter results on July 19th with the following highlights:

Revenue $1.7 billion
Earnings per share $0.73
Cash $94.7 million

David A. DeLorenzo, Dole's President and CEO on company's strategic review during second quarter earnings announcement:

"We are continuing to look at a wide variety of potential alternatives as part of the strategic review of our businesses. As part of this review, we are exploring transactions that may include a full or partial separation of one or more of our businesses through a spin-off or other capital markets transaction, as well as joint venture and sale transactions, all of which are aimed at enhancing shareholder value. This review continues to be a company priority in our efforts to enhance shareholder value."

My analysis

The stock has a $24 price target from the Point and Figure chart. I believe the target price is achievable during the next 12-24 months.

2. Valley National Bancorp (VLY) is a regional bank holding company headquartered in Wayne, New Jersey with nearly $16 billion in assets after the acquisition of State Bancorp. Its principal subsidiary, Valley National Bank, currently operates 211 branches in 147 communities serving 16 counties throughout northern and central New Jersey, Manhattan, Brooklyn, Queens and Long Island. Valley National Bank is one of the largest commercial banks headquartered in New Jersey and is committed to providing the most convenient service, the latest in product innovations and an experienced and knowledgeable staff with a high priority on friendly customer service 24 hours a day, 7 days a week.


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Insider buys

Marc Lenner purchased 50,000 shares on August 2nd and currently controls 169,011 shares of the company. Mr. Lenner is a director of the company.

Financials

The company reported the second-quarter financial results on July 26th with the following highlights:

Net income $0.17 per share
Book value $7.62 per share
Shares outstanding 197 million

My analysis

The stock has a $6.5 price target from the Point and Figure chart. The price target is below the book value of the company.

3. American Spectrum Realty (AQQ) is a real estate investment company that owns, through its operating partnership, interest in office, industrial, self-storage, retail properties, and multi-family properties throughout the United States. The company has been publicly traded since 2001. American Spectrum Realty Management, LLC (ASRM) is a wholly-owned subsidiary of the company that manages and leases all properties owned by American Spectrum Realty, Inc. as well as third-party clients.


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Insider buys

William Carden purchased 102,697 shares on August 3rd and currently holds 925,291 shares of the company. Mr. Carden serves as the CEO and President of the company.

Financials

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

Net income $0.11 per share
Revenue $15.5 million
Cash $1.8 million

My analysis

The stock is down from the $20 in 2011 to the current $3 level. William Carden did purchase 214,340 shares already in April.

4. Omnicare (OCR) a Fortune 400 company based in Cincinnati, Ohio, provides comprehensive pharmaceutical services to patients and providers across North America. As the market-leader in professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other chronic care institutions, Omnicare leverages its unparalleled clinical insight into the geriatric market along with some of the industry's most innovative technological capabilities to the benefit of its long-term care customers. Omnicare also provides key commercialization services for the bio-pharmaceutical industry and end-of-life disease management through its Specialty Care Group.


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Insider buys

Nitin Sahney purchased 10,000 shares on August 3rd and currently holds 76,224 shares of the company. Nitin Sahney serves as COO & President, SCG.

Financials

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

Net sales $1.5 billion
Net income $0.17 per share
Cash $564 million

Outlook

Based on its solid results in the first half of 2012, Omnicare now expects the following for the full-year 2012:

Revenue $6.1B to $6.2B
Adjusted cash earnings per diluted share $3.22 to $3.28
Cash flow from operations $425M to $525M

My analysis

The stock has a $43 price target from the Point and 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.


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Insider Buys

Phillip Frost purchased 60,000 shares on Aug. 3 and currently controls 130,342,900 shares of the company. The company has 297,543,066 shares outstanding, which makes Frost a 43.6% owner of the company. Frost is the CEO and chairman of the company. Frost has been a buyer almost every day this year. His net worth is $2.3 billion as of March 2012.

Financials

The company reported first-quarter financial results on May 10 with the following highlights:

Cash $62.1 million
Net loss per share $0.03
Cash per share $0.21

Upcoming Milestones

  • 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.

My Analysis

The company announced on Friday last week its acquisition of Farmadiet Group Holding, a Barcelona-based company currently engaged in the development, manufacture, marketing, and sale of pharmaceutical, nutraceutical, and veterinary products. More details on the deal is included in OPKO's 8-K filing with the Securities and Exchange Commission. The company has several catalyst pending for the remainder of 2012 and 2013.

Disclosure: I am long OPK.

Source: 5 Major Insider Buys Filed On August 6th