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 $100,000 filed on August 7th. Here are five stocks that I found:
1. Theravance (THRX) is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical companies. Theravance is focused on the discovery, development and commercialization of small molecule medicines across a number of therapeutic areas including respiratory disease, bacterial infections, and central nervous system (CNS)/pain. Theravance's key programs include: Relvar or Breo (FF/VI), umeclidinium bromide/vilanterol (UMEC/VI) and MABA (Bifunctional Muscarinic Antagonist-Beta2 Agonist), each partnered with GlaxoSmithKline (GSK), and its oral Peripheral Mu Opioid Receptor Antagonist program. By leveraging its proprietary insight of multivalency to drug discovery, Theravance is pursuing a best-in-class strategy designed to discover superior medicines in areas of significant unmet medical need.
Glaxosmithkline purchased 316,334 shares on August 3rd and currently holds 26,130,755 shares of the company. The company has 89.2 million shares outstanding, which makes Glaxosmithkline a 29.3% owner of the company.
The company announced the second-quarter financial results on July 31st with the following highlights:
|Net loss||$0.42 per share|
Rick Winningham, Chief Executive Officer of the company commented during the second-quarter earnings release:
We are very proud of Theravance's recent accomplishments. In July, GSK and Theravance announced the submission of regulatory applications for FF/VI for COPD in the EU and the US, and for asthma in the EU. In addition, four pivotal Phase 3a studies with UMEC/VI in the LAMA/LABA program delivered positive results. These are significant advancements and encouraging progress in our portfolio of respiratory therapies with GSK. In another exciting development, we attained positive results from the TD-1211 Phase 2b study in Theravance's peripheral mu opioid receptor antagonist program. As we continue in the second half of 2012, we are diligently working towards advancing these and other programs for the benefit of patients suffering from serious disease.
The stock has met its $27 price target from the Point and Figure chart. I have currently a neutral bias on the stock.
2. Middleburg Financial Corporation (MBRG) is a bank holding company that conducts its primary operations through two wholly owned subsidiaries, Middleburg Bank (MB) and Middleburg Investment Group (MIG). Middleburg Trust Company (MTC), formerly Tredegar Trust Company, and Middleburg Investment Advisors (MIA), formerly Gilkison Patterson Investment Advisors, are part of Middleburg Investment Group. The company, through its subsidiaries, offers a wide range of banking, fiduciary and investment management services available to both individuals and small businesses. The banking services include various types of checking, savings and money market accounts, and the making of business, real estate, development, mortgage, home equity, automobile and other installment, demand and term loans. MB also offers online banking, ATMs, travelers' checks, safe deposit box rentals, wire transfers and other financial services. MTC and MIA provide investment management and fiduciary services, and serve as escrow agents, attorneys-in-fact, guardians of property or trustees of an individual retirement account.
David Sokol purchased 6,681 shares on August 3rd and currently holds 1,716,382 shares of the company. The company has 7 million shares outstanding, which makes David Sokol a 24.3% owner of the company.
The company reported the second-quarter financial results on July 31st with the following highlights:
|Net income||$0.25 per share|
|Book value||$15.57 per share|
The stock is currently consolidating above its book value per share. The chart pattern looks bullish to me.
3. Ameristar Casinos (ASCA) is an innovative casino gaming company featuring the newest and most popular slot machines. Ameristar's 7,500 dedicated team members pride themselves on delivering consistently friendly and appreciative service to its guests. The company continuously strives to increase the loyalty of guests through the quality of slot machines, table games, hotel, dining and other leisure offerings. The company's eight casino hotel properties primarily serve guests from Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, and Nevada.
Luther Cochrane purchased 12,377 shares on August 3rd and currently holds 35,997 shares of the company. Luther Cochrane serves as a director of the company.
The company reported second-quarter financial results on August 1st with the following highlights:
|Net income||$0.51 per share|
In the third quarter of 2012, the company currently expects:
- Depreciation to range from $26.5 million to $27.5 million.
- Interest expense, net of capitalized interest, to be between $29.0 million and $30.0 million, including non-cash interest expense of approximately $1.4 million.
- The combined state and federal income tax rate to be in the range of 40.5% to 41.5%.
- Capital spending of $75.0 million to $80.0 million, including $31.5 million for the balance due in the purchase of the equity interests in Creative and approximately $30.0 million in design and construction costs for the Lake Charles project.
- Non-cash stock-based compensation expense of $3.5 million to $4.0 million.
- Corporate expense, excluding non-cash stock-based compensation expense, to be between $13.0 million and $14.0 million.
The stock has a $12 price target from the Point & Figure chart. With the current fundamentals I would consider buying the stock at $12.
4. First Niagara Financial Group (FNFG) is a multi-state community-oriented bank with nearly 430 branches, approximately $35 billion in assets, $28 billion in deposits, and approximately 6,000 employees providing financial services to individuals, families and businesses across Upstate New York, Pennsylvania, Connecticut, and Massachusetts.
- Daniel Cantara purchased 15,000 shares on August 3rd and currently holds 159,118 shares of the company. Mr. Cantara serves as Executive Vice President, Commercial Business and Regional President, WNY.
- Gary Crosby purchased 7,500 shares on August 3rd and currently holds 95,451 shares of the company. Mr. Crosby serves as Executive Vice President, Chief Operating Officer of the company.
The company reported the second-quarter financial results on July 27th with the following highlights:
|Net operating income||$0.17 per share|
|Book value||$12.84 per share|
The stock is down from $14 in 2011 to the current $8 level. The stock is trading currently below the book value.
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 115,000 shares on August 6, and currently controls 130,457,900 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.
The company reported the first-quarter financial 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 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 are 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.