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 after the market close. Here are five stocks that I found:
1. Navistar International Corporation (NAV) is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse brand chassis for motor homes and step vans. The company is also a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. It also provides truck and diesel engine service parts, another affiliate offers financing services.
- Dr. Mark H. Rachesky, M.D., purchased 25,000 shares through his funds on August 2nd and currently controls 14.99% of the company. Dr. Rachesky co-founded MHR Fund Management in 1996 and serves as its President. He served at Icahn Holding Corp. from February 1, 1990, to June 11, 1996, as the Managing Director.
- Carl Icahn purchased 285,901 shares on July 25-26. Carl Icahn currently controls 10,250,500 shares of Navistar. The company has 68.7 million shares outstanding, which makes Carl Icahn a 14.9% owner of the company. As of March 2012, Carl Icahn's net worth was estimated to be $14 billion.
- Franklin Resources Inc. (BEN) filed a 18.8% ownership on July 10. Franklin Resources was a 12.4% owner as of May 10. Franklin Resources is a global investment management organization known as Franklin Templeton Investments. The company has an extensive global presence, including offices in over 30 countries and clients in more than 150.
- Mario Gabelli filed a 7.23% ownership on July 31st. Mr. Gabelli has increased his ownership from 6.22% in June 8th. Mario Gabelli is an American stock investor, investment advisor, and financial analyst. He is the founder, chairman, and CEO of Gabelli Asset Management Company Investors (GAMCO Investors (GBL)) a $30 billion dollar global investment firm headquartered in Rye, New York. Forbes magazine's 2006 Forbes 400 rankings listed him as #346 on the list of wealthiest Americans and estimated his net worth at $1 billion as of 2011.
I wrote an article about Navistar on June 9. After this article the company has updated its business outlook on August 2nd. The stock has a $18 price target from the Point and Figure chart. These four largest shareholders control currently 56% of the company.
2. Overseas Shipholding Group (OSG), a Dow Jones Transportation Index company, is one of the largest publicly traded tanker companies in the world. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies and is headquartered in New York City, NY.
The company reported the second-quarter financial results on August 1st with the following highlights:
|Net loss||$1.83 per share|
The company gave an updated guidance during the second quarter earnings call which can be viewed via this link.
3. Halcón Resources Corporation (HK) is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
- Tucker Bridwell purchased 20,000 shares on August 6th. Mr. Bridwell serves as a director of the company.
- Stephen Herod purchased 43,346 shares on August 3rd and currently holds 68,346 shares of the company. Mr. Herod serves as President of the company.
- Joseph Rinando purchased 10,000 shares on August 3rd and currently holds 21,000 shares of the company. Mr. Rinando serves as Vice President and Chief Accounting Officer of the company.
- David Elkouri purchased 30,000 shares on August 3rd and currently holds 70,000 shares of the company. Mr. Elkouri serves as Executive Vice President - General Counsel of the company.
The company reported the second-quarter financial results on August 2nd with the following highlights:
|Net loss||$0.59 per share|
Halcón reaffirmed the following previously disclosed production guidance during the second-quarter earnings release:
On a pro forma basis, average daily production for the second quarter of 2012 was approximately 14,900 Boe/d, which represents 10% growth compared to the first quarter of 2012.
The stock has a $5.5 price target from the Point and Figure chart. I believe the target price could be hit during the next 6 months.
4. Federal-Mogul Corporation (FDML) designs, engineers, manufactures and distributes technologies to improve fuel economy, reduce emissions and enhance vehicle safety. The company serves the world's foremost original equipment manufacturers of automotive, commercial, aerospace, marine, rail and off-road vehicles; and industrial, agricultural and power-generation equipment. The company also develops and distributes to the aftermarket an extensive product portfolio with more than 20 of the world's most recognized brands, including ANCO wiper blades; Champion spark plugs, wipers and filters; Fel-Pro, Goetze, Glyco and Payen engine products; MOOG chassis parts; and Ferodo and Wagner brake products. Federal-Mogul was founded in Detroit in 1899. The company employs 45,000 people in 34 countries, and its worldwide headquarters is in Southfield, Michigan, United States.
Carl Icahn purchased 41,500 shares of the company on August 2nd and currently controls 76,458,655 shares of the company. The company has 98.9 million shares outstanding which makes Carl Icahn a 77.4% owner of the company. Mr. Icahn serves as a non-executive Chairman of the Board of the company.
The company reported the second-quarter financial results on July 26th with the following highlights:
|Net loss||$0.6 per share|
5. ZELTIQ Aesthetics (ZLTQ) is a medical technology company focused on developing and commercializing products utilizing its proprietary controlled-cooling technology platform. The company's first commercial product, the CoolSculpting System, selectively reduces stubborn fat bulges that may not respond to diet or exercise. CoolSculpting is clinically proven to reduce fat bulges in a 60-minute procedure, allowing patients to achieve noticeable and measurable aesthetic results. ZELTIQ has received regulatory clearance from the U.S. Food and Drug Administration to market CoolSculpting in the United States for the selective reduction of fat around the flanks. ZELTIQ has also received regulatory approval or is otherwise free to market CoolSculpting in 46 international markets.
Bryan Roberts purchased 60,000 shares on August 2-6th and currently controls 5,348,233 shares of the company. The company has 34.3 million shares outstanding which makes Bryan Roberts a 15% owner of the company. Bryan Roberts, Ph.D. has served on the company's Board of Directors since 2005.
The company reported the second-quarter financial results on July 31st with the following highlights:
|Net loss||$0.24 per share|
Mark Foley, Interim President and Chief Executive Officer, said,
"We are very pleased with our performance during the second quarter of 2012. Our recently strengthened commercial organization, combined with an increased focus on execution, successfully drove physician adoption of CoolSculpting, bringing our installed base to 1,257 systems worldwide. Additionally, we continued to experience significant procedure growth with procedure fee revenues up 84.9% year-over-year. During the quarter, we gained initial insights from our consumer marketing campaign and have begun to leverage these learnings to our future advertising spend. We also had several important intellectual property wins which further validate the proprietary position that we enjoy, worldwide."
"Looking into the second half of 2012, we will continue to strengthen and expand our NAF sales organization, begin to realize the benefits of our recently completed transition to direct sales in Europe and selectively deploy direct to consumer marketing in key geographies in the United States. We continue to look forward to the increasing adoption of CoolSculpting by physicians and patients as we further build the non-invasive fat reduction market."
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in NAV over the next 72 hours.