I screened with Open Insider for insider buy transactions filed on October 4. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at these 5 stocks:
1. Janus Capital Group (JNS) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management, Intech Investment Management and Perkins Investment Management. Each manager employs a research-intensive approach that is distinct within its respective asset class. This multi-boutique approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and mathematical equities, fixed income and alternatives through one common distribution platform. At the end of June 2012, JCG managed $152.4 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in Frankfurt, The Hague, Paris, London, Milan, Munich, Zurich, Singapore, Hong Kong, Tokyo and Melbourne.
Dai Ichi Life Insurance Company purchased 497,900 shares on October 3-4, 1,535,407 shares on October 1, 2,748,666 shares on September 27-28, 1,209,429 shares on September 25-26, 1,145,147 shares on September 21-24 and 1,055,052 shares on September 19-20. Dai Ichi Life Insurance Company currently holds 28,599,570 shares of Janus. Janus has 201,329,431 fully diluted shares outstanding which makes Dai Ichi Life Insurance Company a 14.2% owner of Janus.
The company reported the second-quarter financial results on July 26 with the following highlights:
|Net income||$23.4 million|
The stock has a $18 price target from the Point and Figure chart. There have been six insider buy transactions and three insider sell transactions this year. The stock is trading at a forward P/E ratio of 15.34 and has a book value of $7.25 per share. I believe the stock could be a good pick from the current level.
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 65,000 shares on October 3 and currently controls 132,747,900 shares of the company. The company has 297,836,707 shares outstanding, which makes Mr. Frost a 44.6% 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. Columbia Seligman Premium Technology Growth Fund (STK) is managed by Columbia Management Investment Advisers.
- John Maher purchased 3,050 shares on September 20. John Maher serves as a director of the company.
- Kathleen Blatz purchased 100 shares on October 4. Kathleen Blatz serves as a director of the company.
- Leroy Richie purchased 100 shares on October 2. Leroy Richie serves as a director of the company.
The stock has a $13 price target from the Point and Figure chart. There have been three insider buy transactions and there has not been any insider sell transactions this year. The stock is trading at a 2.56% discount to its Net Asset Value and has a 11.9% dividend yield. I believe the stock is a good pick below the Net Asset Value.
4. Digirad (DRAD) is a leading provider of diagnostic imaging products. Digirad also provides the ability for its physician customers to lease its qualified personnel, imaging systems and related items required to perform nuclear imaging in their own offices.
Jeffrey Eberwein purchased 10,000 shares on October 3-4 pursuant to a Rule 10b5-1 trading plan entered into by the reporting person on August 6, 2012. Jeffrey Eberwein currently holds 272,985 shares of the company. Jeffrey Eberwein serves as a director of the company.
The company reported the second-quarter financial results on July 26 with the following highlights:
|Net loss||$0.9 million|
|Shares outstanding||20.1 million|
|Net cash per share||$1.42|
Digirad CEO Todd Clyde commented on July 26:
"To reiterate our goals for 2012, we expect to generate positive cash flow from our DIS business and are focused on increasing sales of both our cardiac and ergo cameras. Management and the Board's newly formed Strategic Advisory Committee continue to explore various strategic options, including examining where our core solid state camera technologies can be applied with greater success in the marketplace."
There have been 22 insider buy transactions and five insider sell transactions this year. The company has a book value of $2.04 per share and net cash of $1.42 per share. The stock could be a good pick from the current level.
5. Elecsys Corporation (ESYS) provides innovative machine to machine [M2M] communication technology solutions, data acquisition and management systems, and custom electronic equipment for critical industrial applications worldwide. The company's primary markets include energy, agriculture, safety and security systems, water management, and transportation. Elecsys proprietary equipment and services encompass wireless remote monitoring, industrial data communication, and mobile data acquisition technologies that are deployed wherever high quality and reliability are essential. Elecsys develops, manufactures, and supports proprietary technology and equipment under several premium brand names. In addition to its proprietary products, Elecsys designs and manufactures rugged and reliable custom electronic assemblies and integrated display modules for multiple original equipment manufacturers in a variety of industries worldwide.
Stan Gegen purchased 6,100 shares on October 3 and currently holds 240,426 shares of the company. Stan Gegen serves as a director of the company.
The company reported the first quarter, which ended July 31, 2012, financial results on September 10 with the following highlights:
|Net loss||$0.2 million|
Total backlog at July 31, 2012 was approximately $8,175,000, an increase of $270,000 from a total backlog of $7,905,000 on April 30, 2012.
Karl B. Gemperli, Chief Executive Officer, commented on September 10:
"Although the level of new orders received was consistent with recent quarters, continued economic weakness in the industrial sectors that contain much of our customer base resulted in a decrease in shipments across all of our product lines relative to the first quarter of last year. We consider investments in people, systems, and capabilities to be vital for our sustained growth and our ability to acquire new customers. We believe that the product development, marketing, and sales activities we are currently engaged in will expand applications for our products and technologies into new industry segments and developing international markets. Although the continuing uncertainty in world markets and the tentative nature of any domestic recovery continue to present challenges, we are optimistic about the future and anticipate positive trends in both revenues and earnings during the coming quarters."
There have been 14 insider buy transactions and nine insider sell transactions this year. The company has a book value of $3.12 per share. The stock could be a good pick from the current level based on the insider trading activity during the last month.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in JNS over the next 72 hours.