I screened with Open Insider for insider buy transactions filed on September 25. I then checked with Stock Charts if the stocks had bullish Point and Figure counts. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at the top 5 stocks:
1. Wausau Paper (WPP) produces and markets specialty papers for industrial, commercial and consumer end markets as well as a complete line of away-from-home towel and tissue products.
Starboard Value LP purchased 742,327 shares on September 21-25, 82,673 shares on September 4-5 and 350,000 shares on August 16-17. Starboard Value LP currently controls 6,600,000 shares of Wausau Paper. Wausau Paper has 49,322,921 shares outstanding, which makes Starboard Value LP a 13.4% owner of Wausau Paper.
The company reported the second-quarter financial results on July 30 with the following highlights:
|Adjusted net earnings per share||$0.09|
Henry C. Newell, president and CEO commented on July 30:
"We will see increasing intensity as we move through the second half; we expect to continue our growth momentum in both tissue and technical markets and the startup of the new paper machine will dominate our priorities. We are cautious in our guidance for the second half due primarily to a challenging economic environment and expect full year adjusted net earnings to be in the $0.39 - $0.41 per share range versus prior-year adjusted net earnings of $0.33 per share."
The stock has a $17 price target from the Point and Figure chart. There have been four insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a forward P/E ratio of 19.67. The stock has not traded at $17 since 2005. I am cautiously bullish on the stock currently.
2. Synergy Resources Corporation (SYRG) is a domestic oil and natural gas exploration and production company. Synergy's core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin ranks as one of the most productive fields in the U.S. The company's corporate offices are located in Platteville, Colorado.
George Seward purchased 31,454 shares on September 24 and currently holds 1,247,661 shares of the company. George Seward serves as a director of the company.
The company reported its fiscal third-quarter results for the period ended May 31, 2012 on July 9 with the following highlights:
|Net income||$2.4 million|
During the 2012 fourth fiscal quarter, Synergy plans to commence production on 16 recently drilled and operated wells. Nine Aims/Greeley Country Club wells were completed and initial production began in late July. Seven Margil SE wells are complete and should have first production dates during August.
Synergy Resources President and CEO Edward Holloway commented on July 9:
"Between cash generated from operations, proceeds from our December equity offering, and borrowings available under our $20 million revolving line of credit, we are very well positioned financially and on schedule operationally to drill the remaining wells we planned for our 2012 drilling program. We expect to sustain this momentum as we enter fiscal 2013."
The stock has a $7 price target from the Point and Figure chart. There have been 12 insider buy transactions and there have not been any insider sell transactions since October 2011. The stock is trading at a forward P/E ratio of 8.20. I would get interested in buying the stock if we can get a pullback towards the 200-day moving average currently at $3.05.
3. Media General (MEG) is a leading provider of news, information and entertainment across 18 network-affiliated broadcast television stations and their associated digital media and mobile platforms. The company's stations serve consumers and advertisers in strong local markets, primarily in the Southeastern United States. Media General's network affiliates include eight NBC stations, eight CBS stations, one ABC station and one CW station. Six of the company's stations operate in the Top 40 markets in the United States. Media General's stations reach more than one-third of TV households in the Southeast and more than 8 percent of U.S. TV households. Media General entered the television business in 1955 when it launched WFLA-TV in Tampa, Florida, as an NBC affiliate. Today, WFLA is the company's largest TV station, operating in the 14th largest DMA in the United States. Media General continues to own The Tampa Tribune and its associated print properties and expects to enter into a transaction with one of several prospective buyers for the group.
- Wyndham Robertson purchased 10,000 shares on September 24. Wyndham Robertson serves as a director of the company.
- Media General announced on September 25 that Berkshire Hathaway (BRK.A) has exercised its warrants to purchase 4,646,220 shares of the company's Class A common stock. The exercise price for these warrants was 1 cent per share. The warrants were issued as part of a new credit agreement that Media General and Berkshire Hathaway completed on May 24, 2012. Following Berkshire Hathaway's warrants exercise, Media General has 27,918,339 common shares outstanding, and Berkshire Hathaway's ownership represents 16.6% of the total.
The company reported the second-quarter financial results on July 18 with the following highlights:
|Net loss||$146.3 million|
|Long-term debt||$651.9 million|
Net loss in the second quarter was $146.3 million, or $6.48 per share, including an after-tax loss of $131.7 million related to the divestiture of discontinued operations, compared with a net loss of $15.4 million, or 68 cents per share, in the 2011 second quarter.
Media General provided the following guidance on July 18:
- Political revenues are expected to be approximately $50 million for the full year 2012.
- Summer Olympics revenues are expected to exceed the $12.5 million generated from the 2008 summer games.
- Broadcast pacings for the third quarter of 2012, including Political, are approximately 30% ahead of last year. Core pacings, excluding Political, are approximately 20% ahead of last year. Key categories driving core growth are auto, entertainment, financial, media, professional services, grocery and travel.
- The company has a plan, underway now, to reduce corporate expense 35-40%.
- For the full year 2012, the company expects that cash provided by operations will be used to make interest payments of $65 million, capital expenditures of $15 million and retirement plan contributions of $13 million.
The stock has a $7.75 price target from the Point and Figure chart. There has been one insider buy transaction and one insider sell transaction this year. The company has a book value of -$5.53 per share. I am currently only cautiously bullish on the stock based on the financials.
4. Oiltanking Partners (OILT) is a publicly traded master limited partnership engaged in independent storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. The company provides its services to a variety of customers, including major integrated oil companies, distributors, marketers and chemical and petrochemical companies. The company's assets are strategically located along the Gulf Coast of the United States.
Mark Leland purchased 500 shares on September 24, 500 shares on September 10 and 1,000 shares on August 30. All these shares were purchased pursuant to a unit purchase plan in compliance with Rule 10b5-1 under the Securities Exchange Act of 1934. Mark Leland serves as a director of the company.
The company reported the second-quarter financial results on August 8 with the following highlights:
|Net income||$16.6 million|
Carlin Conner, Chairman, President and Chief Executive Officer of the Partnership's general partner commented on August 8:
"Our current crude storage expansion projects and crude pipeline project are on budget and on schedule with an additional 1.1 million barrels of new storage capacity and the pipelines expected to be placed into service by early 2013 and a further 3.2 million barrels of crude storage capacity expected to be in service by year-end 2013. We have secured long-term contracts for 100% of this additional capacity and our confidence in future growth opportunities continues to build as our existing customer base as well as new customers continue to express strong interest in making future commitments."
The stock has a $68 price target from the Point and Figure chart. There have been 12 insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a forward P/E ratio of 28.12 and has a 3.94% dividend yield. The stock could be a good pick from the current level.
5. Versar (VSR) is a publicly traded global project management company providing sustainable value oriented solutions to government and commercial clients in the construction management, environmental services, munitions response, and telecommunication and technology integration market areas.
Anthony Otten purchased 2,000 shares on September 24 and currently holds 125,919 shares of the company. Anthony Otten is the Chief Executive Officer of Versar.
The company reported the full fiscal year 2012 (ended June 29) financial results on September 18 with the following highlights:
|Net income||$4.2 million|
As of June 29, 2012, Versar recorded funded backlog of approximately $93 million, an increase of 19% compared to $78 million of funded backlog at July 1, 2011. This increase reflected the award of several large long-term contracts and was indicative of the high quality proposals that were developed as a result of proposal preparation staff training and business development investments earlier this fiscal year.
The stock has a $6.25 price target from the Point and Figure chart. There have been four insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a P/E ratio of 7.38. The company has a book value of $3.66 per share. I believe the stock could be a good pick below the book value of $3.66 per share.