I screened with Open Insider for insider buy transactions filed on October 2. From this list, I chose 5 stocks with insider buying in dollar terms. Here is a look at these 5 stocks:
1. Cazador Acquisition Corporation (CAZA) is a special purpose acquisition company [SPAC], also known as a blank-check company incorporated as a Cayman Islands-exempted company. Cazador intends to use the net proceeds from its initial public offering for the purpose of acquiring one or more operating companies through a merger, share capital exchange, asset acquisition, share purchase, reorganization or similar business combination.
Kenges Rakishev purchased 1,480,751 shares on September 28 - October 1 and currently controls 2,320,751 shares of the company. Kenges Rakishev serves as a director of the company.
The company reported the second-quarter financial results on August 14 with the following highlights:
|Net loss||$0.2 million|
|Shares outstanding||5.75 million|
|Net cash per share||$8.03|
Net Element and Cazador Acquisition Corporation announced on June 12 the execution of a merger agreement that will infuse up to $81 million into Net Element and provide the necessary financial resources for the company's next stage of growth.
The combined entity, which will be named Net Element International, is applying to be listed on Nasdaq under the ticker symbol NETE. Upon completion of the business combination, Net Element, which currently operates several entertainment and lifestyle online destinations and is developing a mobile commerce and payment-processing platform for emerging markets, will name Cazador's current CEO, Francesco Piovanetti, as its CEO. Net Element also will add several key members of Cazador's asset management team.
The business combination is subject to the approval of Cazador and Net Element's respective shareholders as well as other customary closing conditions. Assuming the closing conditions are met, the business combination is expected to be completed during the third quarter 2012.
Kenges Rakishev has been the only insider buying the shares this year. There have not been any insider sell transactions this year. I would expect the cash position of $8.03 per share to act like a support for the stock.
2. 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 212,500 shares on October 1 and currently controls 132,582,900 shares of the company. The company has 297,836,707 shares outstanding, which makes Mr. Frost a 44.4% owner of the company. Phillip Frost is the CEO and chairman of the company. Mr. Frost has been a buyer almost every day this year. His net worth was $2.4 billion as of September 2012.
The company reported the second-quarter financial results on August 9 with the following highlights:
|Net loss||$10.8 million|
- 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.
OPKO Health announced on October 1 that a strategic partner, International Health Technology [IHT] headquartered in Cambridge, UK, launched the OPKO 4Kscore in Europe as part of IHT's ProstateCheck program being offered as an early detection service.
Earlier this year, OPKO executed a sublicensing deal with IHT to commercialize OPKO's novel panel of kallikrein biomarkers and associated algorithm (4Kscore) for the early detection of prostate cancer in a laboratory setting in the UK, Ireland, Sweden and Denmark. The OPKO panel represents the culmination of a decade of research by scientists in Europe and the U.S. and has been demonstrated in over 10,000 patients to predict the probability of cancer-positive biopsies in men suspected of having prostate cancer. Extensive studies have shown that the use of the panel could eliminate a significant number of unnecessary prostate biopsies, a possible reduction of over 50%, along with a high frequency of associated pain, bleeding and infection, sometimes requiring hospitalization. With this significant reduction in biopsy rate, the probability of delaying diagnosis of a high grade cancer is only 0.6% (and this small population of men would be followed with active surveillance).
The stock has a $2.75 price target from the Point and Figure chart. The company has several catalysts pending for 2012 and 2013. I would be watching the $4 level closely to see if it holds or not. The 200 day moving average is currently at $4.68 which could act like resistance for the stock. Phillip Frost has been buying 5-10% of the shares traded each day for months already.
3. Engility (EGL) is a pure-play Government Services contractor providing highly-skilled personnel wherever, whenever they are needed, in a cost effective manner. Headquartered in Chantilly, VA, Engility is a leading provider of systems engineering services, training, program management, and operational support for the U.S. government worldwide, with approximately 8,000 employees worldwide.
Abrams Capital Management purchased 29,250 shares on September 28, 9,798 shares on September 27 and 100,877 shares on September 24-26. Abrams Capital Management currently controls 2,151,368 shares of Engility. Engility has 16,302,993 shares outstanding which makes Abrams Capital Management a 13.2% owner of Engility.
The company reported the second-quarter financial results on August 13 with the following highlights:
|Net income||$15.0 million|
Based upon operating and business development performance through the second quarter, the company expects its fiscal year 2012 results will be as follows:
|2012 Fiscal Year Outlook|
|Diluted EPS range||$2.30-$2.55|
There have been seven insider buy transactions since the spin-off from L-3 Communications Holdings (LLL) on July 17, 2012. There has not been any insider selling since the spin-off. The stock is trading at a forward P/E ratio of 7.61. The stock could be a good pick from the current level.
4. The Gabelli Equity Trust (GAB) is a non-diversified, closed-end management investment company with $1.4 billion in net assets whose primary investment objective is to achieve long-term growth of capital by investing primarily in a portfolio of equity securities consisting of common stock, preferred stock, convertible or exchangeable securities, and warrants and rights to purchase such securities. Income is a secondary investment objective. The Fund is managed by Gabelli Funds, a subsidiary of GAMCO Investors (GBL).
Bruce Alpert purchased 11,000 series H cumulative preferred stock on September 28 pursuant to a public offering. Bruce Alpert' wife purchased 10,000 series H cumulative preferred stock on September 28 pursuant to a public offering. Bruce Alpert is the President of Gabelli Equity Trust.
The stock has a $7.75 price target from the Point and Figure chart. There have been two insider buy transactions and there have not been any insider sell transactions this year. The stock has a 9.89% dividend yield. The stock is currently trading very close to its Net Asset Value of $5.57 per share which could be a good entry point for the stock.
5. Navarre (NAVR) is a distributor and provider of e-commerce fulfillment solutions for traditional and internet-based sales channels. The company's solutions support both direct-to-consumer and business-to-business sales. Navarre also publishes computer software through its Encore subsidiary, and is headquartered in Minneapolis, Minnesota.
Becker Drapkin Management purchased 27,300 shares on September 28. Becker Drapkin Management is a member of a 13(d) 10% group.
The company reported financial results for its fiscal first quarter, which ended June 30, 2012, on July 31 with the following highlights:
|Net loss||$0.6 million|
|Book value||$1.06 per share|
Net sales are expected to be between $460.0 million and $480.0 million, and adjusted EBITDA is expected to be between $9.0 and $11.0 million for fiscal 2013.
The stock has met its bearish $1.25 price target from the Point and Figure chart. There have been 13 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 23.00. The company has a book value of $1.06 per share which I would expect to act like a support for the stock.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GAB over the next 72 hours.