Seeking Alpha
Recommended for you:
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

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, part II on August 3rd and part III on August 4th. Here are five additional companies that I found:

1. NetSol Technologies (NASDAQ:NTWK) is a worldwide provider of global IT and enterprise application solutions that include credit and finance portfolio management systems, SAP consulting and services, custom development, systems integration, and technical services for the global Financial, Leasing, Insurance, Energy and Technology markets.

(click to enlarge)

Insider buys

  • Naeem Ghauri purchased 50,000 shares on June 6th and currently holds1,348,151 shares of the company. Naeem Ghauri is the President of NetSol Technologies Europe, and Head of Global Sales of NetSol Technologies.
  • Najeeb Ghauri purchased 50,000 shares on June 6th and currently holds 2,478,546 shares of the company. Najeeb Ghauri serves as Chief Executive Officer and Chairman of NetSol.
  • Salim Ghauri purchased 50,000 shares on June 6th and currently holds 2,195,191 shares of the company. Salim Ghauri is the founder of NetSol Technologies (previously Network Solutions) and the visionary force behind the company. He is now the CEO and Chairman of NetSol Technologies Ltd. (the company's center of technological excellence located in Pakistan listed on the Karachi Stock Exchange) and also oversees the company's business in the Asia Pacific Region.

Financials

The company reported the fiscal 2012 third quarter (ending March 31st) financial results with the following highlights:

Cash$9.1 million
Revenue$10.6 million
Net income$0.03 per share

Outlook

On July 12, 2012, NetSol Technologies provided preliminary revenue and earnings per share results for the fiscal year and fourth quarter that ended June 30, 2012. Preliminary revenue results indicate the company's strongest year ever, with consecutive sequential quarterly growth throughout - a company first - and the highest quarterly revenue in the company's history.

Based on preliminary estimates, NetSol anticipates that total revenue for the fiscal year will be in the range of $37 million to $38 million, indicating fiscal fourth quarter revenue of approximately $11.6 to $12.6 million, versus prior guidance of $8.6 million to $10.1 million.

Previously, NetSol said that it expected total revenue for the fiscal year of approximately $34 million to $35.5 million, or revenue growth of 30% to 40% for the second half of the fiscal year compared with the first half of the year. Instead, the company now anticipates growth of 50% to 56% for the second half over the first half of the year. The company attributed the robust growth to having signed a number of new contracts in the fiscal fourth quarter and continued robust demand for its core NFS Suite offering.

Given the current revenue estimates, NetSol now expects to report earnings per diluted share for the fiscal year in the range of $0.03 to $0.04, translating to earnings per diluted share in the fiscal fourth quarter of approximately $0.02 to $0.03. Previously, the company said it expected to achieve profitability for the full fiscal year.

NetSol expects to report its complete fiscal 2012 financial results in early September 2012.

2. The Phoenix Companies (NYSE:PNX) is a boutique life insurance and annuity company serving customers' retirement and protection needs through select independent distributors. Headquartered in Hartford, Connecticut, Phoenix has a history of keeping its promises since 1851.

(click to enlarge)

Insider buys

  • Bonnie Malley purchased 65,000 shares on June 1st and currently holds 184,931 shares of the company. Bonnie Malley is an Executive Vice President and Chief Administrative Officer of The Phoenix Companies. She is responsible for Human Resources, Corporate Communications, Corporate Services and Information Technology.
  • John Mulrain purchased 10,000 shares on May 17th and currently holds 22,111 shares of the company. John is Executive Vice President, General Counsel and Secretary at The Phoenix Companies. He is responsible for all legal functions, including corporate compliance, and serves as Corporate Secretary.
  • Christopher Wilkos purchased 25,000 shares on May 15th and currently holds 114,271 shares of the company. Chris Wilkos is Executive Vice President and Chief Investment Officer of The Phoenix Companies. As Chief Investment Officer, Mr. Wilkos sets investment strategy to ensure that Phoenix fulfills its obligations to customers.
  • John LaGrasse purchased 36,800 shares on May 10th and currently holds 125,812 shares of the company. John LaGrasse is Executive Vice President, Alternative Retirement Solutions for The Phoenix Companies.
  • James Wehr purchased 100,000 shares on May 10th and currently holds 324,992 shares of the company. Jim Wehr is President and Chief Executive Officer of The Phoenix Companies. He was appointed in April 2009 after serving as Senior Executive Vice President and Chief Investment Officer.
  • Philip Polkinghorn purchased 10,000 shares May 4th and currently holds 233,654 shares of the company. Phil Polkinghorn is Senior Executive Vice President of The Phoenix Companies. He is responsible for business development, including expanding the company's reach into the middle market and opening up additional markets and distribution channels for Phoenix's life insurance, annuity and alternative retirement solutions product lines.

Financials

The company reported the second quarter financial results on August 1st with the following highlights:

Book value$8.16 per share
Revenue$916.3 million
Net loss$0.18 per share

Outlook

The CEO Jim Wehr commented the second quarter results and gave the following outlook at the conference call:

As I said at the beginning of the call, it was a mixed quarter. GAAP earnings were down sequentially, driven by a decline in fees and the market impact. However, we continue to see positive fundamentals and very strong statutory results. At the end of the day, we can't lose sight of the fact that we are a turnaround story, and our results are going to fluctuate from quarter-to-quarter. We remain committed to our long-term strategy and know that our ultimate success will be driven by effective execution of both Inforce Management and profitable capital friendly growth. So we remain focused and are making progress.

3. Saratoga Resources (NYSEMKT:SARA) is an independent exploration and production company, with offices in Houston, Texas and Covington, Louisiana. Principal holdings cover 32,185 gross/net acres, mostly held-by-production, currently located in the transitional coastline and protected in-bay environment on parish and state leases of south Louisiana with water depths of less than 20 feet. The company has 100% working interest in virtually all of its wells, which are distributed between twelve fields.

(click to enlarge)

Insider buys

Blackstone Group purchased 800,000 shares on May 24th and currently holds 4,800,000 shares of the company. The shares were purchased through a secondary offering. The company has 30 million shares outstanding which makes Blackstone Group a 16% owner of Saratoga.

Financials

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

Cash$14.8 million
Revenue$20.2 million
Net loss$0.04 per share

Outlook

The company is expecting 45-55% growth in production in 2012 with exit rate >5,000 net Boepd.

4. SMTC Corporation (NASDAQ:SMTX) is a mid-size provider of end-to-end electronics manufacturing services [EMS] including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Canada, Mexico, and China, with more than 1,875 full-time employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers [OEMs] and emerging technology companies primarily within industrial, computing and communication market segments. SMTC was recognized in 2012 by Frost & Sullivan with the Global EMS Award for Product Quality Leadership.

(click to enlarge)

Insider buys

Paul Blom purchased 1,350 shares on May 14th and currently holds 11,350 shares of the company.

Financials

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

Cash$2.1 million
Revenue$72.5 million
Earnings$0.15 per share

Outlook

The company gave the following guidance during the first quarter earnings:

Maintains guidance for remainder of fiscal 2012 of $14-$16 million adjusted EBITDA, $250-$270 million revenues and $0.53 - $0.65 EPS.

The company will report the second quarter financial results on August 9th.

5. Sport Chalet (NASDAQ:SPCHB) is a leading operator of full service specialty sporting goods stores in California, Nevada, Arizona and Utah. The company offers over 50 services for the serious sports enthusiast, including backpacking, rock climbing, custom golf club fitting and repair, snowboard and ski rental and repair, SCUBA training and certification, SCUBA boat charters, team sales, racquet stringing, and bicycle tuneup and repair throughout its 54 locations.

(click to enlarge)

Insider buys

  • Rachel Glaser purchased 7,500 shares on June 14th. Rachel Glaser is a Director of the company.
  • Randall Scoville purchased 10,000 shares on June 12th. Randall Scoville is a Director of the company.
  • Kevin Ventrudo purchased 10,000 shares on June 11th and currently controls 85,000 shares of the company. Kevin Ventrudo is a Director of the company.
  • Donald Howard purchased 10,000 shares on June 8th. Donald Howard is a Director of the company.

Financials

The company reported the fourth quarter of fiscal year 2012 (ending April 1st) financial results with the following highlights:

Net sales$81.9 million
Net loss$0.27 per share
Cash$2.8 million

Outlook

Craig Levra, Chairman and CEO, stated during fourth quarter earnings release:

We believe the consistent improvements we have made to our business over the past few years have positioned us to return to profitability for fiscal 2013.

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