I screened with Finviz for companies that trade with a P/E ratio of less than 5 and checked if the companies had any insider buys during the last three months. I chose to check the insider buys to narrow the list and to add more confidence that these stocks could be good picks now. The low P/E shows that the companies have great earnings power relative to their market cap. I wrote the Part I of "5 Companies Trading At Price-To-Earnings Ratio Of Less Than 5 With Recent Insider Buying" on August 15 and Part II on August 16. Here is a look at five additional companies that I found:
1. Stanley Furniture Company (STLY) is a leading designer and manufacturer of wood furniture targeted at the premium segment of the residential market. The company offers two major product lines. Its Stanley Furniture brand represents its fashion-oriented adult furniture and competes through an overseas sourcing model in the upscale market through superior finish, styling and piece assortment. Its Young America brand is positioned as the leader in the infant and youth segment and differentiates through a domestic manufacturing model catering to parent preferences such as child safety, color, choice and quick delivery of customized special orders.
Michael Haley purchased 2,347 shares on July 19 and currently holds 15,195 shares of the company. Michael Haley serves as a director of the company.
The company reported the second-quarter financial results on July 17 with the following highlights:
|Earnings per share||$2.54|
The company reported net income of $36.9 million in the second quarter after recording $39.4 million of income, net of expenses, from Continued Dumping and Subsidy Offset Act (CDSOA) proceeds.
The company is projecting a slight increase in net sales from the prior year third quarter and expects a further reduction in operating losses. Glenn Prillaman, President and Chief Executive Officer commented:
"We have several encouraging trends in our business. Retailers who have received the initial shipments of our newly-enhanced Young America products have given us very positive feedback. This news reinforces our belief that our long-term plan for the Young America brand positions us well to return to growth. In addition, our Stanley product introduction from High Point's Spring Market was well-received and is already on its way from overseas to retail floors."
2. Taylor Capital Group (TAYC) is a bank holding company with its Operations Center at Rosemont, Illinois, a suburb of Chicago. Taylor Capital Group derives virtually all of its revenue from its subsidiary, ColeTaylorBank, the sixth largest commercial bank headquartered in the Chicago metropolitan area based on assets.
Taylor Capital Group focuses on closely-held businesses and the people who own and manage them. The company provides a range of products and services concentrated in the areas of commercial banking, asset-based lending, commercial real estate lending, residential mortgage lending and personal banking. Taylor Capital Group currently operates nine banking centers throughout the Chicago metropolitan area and its operations extend to many states across the country.
- John Lynch purchased 7,550 shares on August 13 and currently holds 139,284 shares of the company. John Lynch, Jr. joined Cole Taylor Bank in October, 2008, as vice chairman.
- Hill Hammock purchased 30,000 shares on June 5-6 and currently holds 146,710 shares of the company. Hill Hammock has served as a director of the company since August 2008 and as a member of the Compensation Committee since March 2009.
The company reported the second-quarter financial results on July 18 with the following highlights:
|Net income||$ 0.41 per share|
The stock has a $21 price target from the Point and Figure chart. I believe the target price is achievable during the next 12-24 months. The company has a book value of $15.25 per share. The last insider sell was in November 2011.
3. Thompson Creek Metals Company (TC) is a growing, diversified North American mining company. Thompson Creek has two large operating molybdenum mines, a large copper-gold mine under construction, a stand-alone metals roasting facility, and a number of additional metals properties in various stages of development. All operations are located in the United States or Canada.
- Kevin Loughrey purchased 25,000 shares on May 23 and currently holds 161,861 shares of the company. Mr. Loughrey is currently the Chairman of Board of Directors and has been Chief Executive Officer of the company since December 1, 2006.
- Denis Arsenault purchased 53,000 shares on May 16 and currently holds 145,336 shares of the company. Denis Arsenault serves as a director of the company.
The company reported the second-quarter financial results on August 9 with the following highlights:
|Net loss||$ 0.09 per share|
|Cash per share||$2.43|
The company also announced that it has entered into an amendment to its gold stream agreement with Royal Gold (RGLD), pursuant to which it has agreed to sell Royal Gold an additional 12.25% of the refined gold production from the company's Mt. Milligan copper-gold mine for $200 million, plus $435 per ounce, or the prevailing market rate, if lower than $435 per ounce, when the gold is delivered.
Mt. Milligan remains on schedule:
- Start up expected Q3 13
- Commercial production expected Q4 13
The stock has seen steady insider buying since August 2011. The stock is currently trading below its cash position of $2.43 per share and has a forward P/E of 5.48. I might take a long position in the stock.
4. Tianyin Pharmaceutical (TPI) is a leading manufacturer and supplier engaged in the development, manufacturing, marketing and sale of modernized traditional Chinese medicines and branded generics, with two state-of-the-art manufacturing facilities and an extensive nationwide sales and distribution network throughout China.
The company currently manufactures and markets a comprehensive portfolio of 58 products, of which 24 are listed in the highly selective National Medicine Catalog of the National Medical Insurance program, 7 are included in the essential drug list of China.
- James Tong purchased 1,900 shares on June 15 and currently holds 128,466 shares of the company. Dr. James Tong serves as Chief Financial Officer, Chief Business & Development Officer of the company.
- Guoqing Jiang purchased 59,200 shares on May 18 and currently holds 7,432,784 shares or 25% of the company. Dr. Guoqing Jiang, MD is Chairman, Chief Executive Officer of the company.
The company reported the first-quarter financial results on May 15 with the following highlights:
|Net income||$ 0.03 per share|
|Cash per share||$1.02|
As a result of the current pricing restriction by the healthcare reform policies of the government along with the rippling effect of the highly competitive market environment for our generic portfolio, we revised our fiscal 2012 revenue guidance from $100 million to $66 million and our net income guidance from $10 million to $6.5 million.
The company has a book value of $2.97 per share. The stock has not seen any insider sells since March 2010. There has been several insider buys during the last two years. I recommend buying the stock from the current levels.
5. Verenium (VRNM), an industrial biotechnology company, is a global leader in developing high-performance enzymes. Verenium's tailored enzymes are environmentally friendly, making products and processes greener and more cost-effective for industries, including the global food and fuel markets.
James Levine purchased 4,994 shares of the company on May 15 and currently holds 109,166 shares of the company. James Levine serves as the Chief Executive Officer of the company.
The company reported the second-quarter financial results on August 6 with the following highlights:
|Net loss||$ 0.20 per share|
Verenium has provided financial guidance for 2012, as follows:
- Revenue: $58M- $62M
- Product Gross Profit: $19M - $21M
- Operating Loss: $(7)M - $(9)M (excluding gain on sale from DSM transaction)
- Capital Expenditures: $8M - $9M
The company completed a strategic transaction with DSM Food Specialties including the sale of the company's oilseed processing business, for total consideration of $37 million during the first quarter. Excluding this transaction the company is expecting to report a loss of $7-$9 million for the full year.
The stock has a $7 price target from the Point and Figure chart. The stock has seen more insider buying than selling during the past 12 months. I am not planning to take a position in the stock currently.
Disclosure: I am long TPI.