I screened with Open Insider for insider buy transactions filed on October 5. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at these 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 250,000 shares on October 3-5, 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 6,850,000 shares of Wausau Paper. Wausau Paper has 49,322,921 shares outstanding, which makes Starboard Value LP a 13.9% 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 October 1:
In the near-term, Paper segment profitability challenges will significantly affect second-half adjusted earnings. Consequently, we are reducing our full-year adjusted earnings guidance to $0.28 to $0.30 per share, and anticipate mid-single digit adjusted earnings per share in both the third and fourth quarters.” The Company’s previous guidance was for full-year adjusted net earnings in the $0.39 to $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 five 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 18.52. The stock has not traded at $17 since 2005. I am cautiously bullish on the stock currently.
2. Tesla's (TSLA) goal is to accelerate the world's transition to electric mobility. Palo Alto, California-based Tesla designs and manufactures EVs and EV power train components for partners such as Toyota and Daimler. Tesla has delivered more than 2,350 Roadsters to customers worldwide. Model S, the first premium sedan to be built from the ground up as an electric vehicle, began deliveries in June 2012.
Elon Musk purchased 35,398 shares on October 3 pursuant to a secondary offering. Elon Musk currently controls 27,203,237 shares of the company. Tesla has 112,687,773 shares outstanding, which makes Elon Musk a 24.1% owner of the company. Elon Musk co-founded Tesla and continues to oversee the company's product strategy including the design, engineering and manufacturing of more and more affordable electric vehicles for mainstream consumers. As Chairman and Product Architect, he helped design the ground-breaking Tesla Roadster, for which he won an Index and a Global Green award, the latter presented by Mikhail Gorbachev. In October 2008, he took on the additional responsibility of CEO, overseeing daily operations as the company was ramping up Roadster production and accelerating the development of its second vehicle, the Model S.
The company reported the second-quarter financial results on July 25 with the following highlights:
|Net loss||$105.6 million|
The company received $193.2 million from the secondary offering closed on October 3.
The company anticipates, as of September 28, revenue for 2012 of $400 to $440 million. The company also believes that third quarter revenue will be in the range of $44 to $46 million.
The company expects R&D spending for the third quarter to be approximately 20% lower than the second quarter, as this will be the first quarter in which a material amount of Model S manufacturing expenses will be reflected in cost of goods sold rather than in research and development and as one-time Model S development expenses decline. The company also expects selling, general and administrative expenses for the third quarter to increase modestly over the prior quarter as the company continues to increase its vehicle selling and servicing capabilities. The company believes capital expenditures will be between $220 and $240 million for 2012.
For 2013, the company plans to exceed its objective of 20,000 Model S deliveries in 2013 and expect to achieve a gross margin of 25% in 2013 once the company achieves manufacturing efficiencies and planned cost reductions associated with higher volume production and improvements in the margins of its powertrain sales.
The stock has a $41 price target from the Point and Figure chart. There has been one insider buy transaction and there have been 23 insider sell transactions this year. The stock is trading at a forward P/E ratio of 76.03. I am cautiously bullish on the stock.
3. Summit Midstream Partners (SMLP) is a growth-oriented limited partnership focused on owning and operating midstream energy infrastructure that is strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in North America. The Partnership currently provides fee-based natural gas gathering and compression services in two unconventional resource basins: (i) the Piceance Basin, which includes the Mesaverde, Mancos and Niobrara Shale formations in western Colorado; and (ii) the Fort Worth Basin, which includes the Barnett Shale formation in north-central Texas. The Partnership owns and operates approximately 385 miles of pipeline and 147,600 horsepower of compression. The Partnership is headquartered in Dallas, TX with offices in Houston, TX, Denver, CO and Atlanta, GA.
The company reported the first-half of 2012 financial results with the following highlights:
|Net income||$16.7 million|
The company received $234.3 million from the Initial Public Offering.
The stock started trading on September 28, 2012. There has been one insider buy transaction and there have not been any insider sell transactions since the IPO. The stock is trading at a P/E ratio of 40.66. I am cautiously bullish on the stock.
4. 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 77,500 shares on October 4 and currently controls 132,825,400 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.
5. Texas Industries (TXI) is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregate, ready-mix concrete and concrete products.
Bernard Lanigan purchased 10,000 shares on October 3. Bernard Lanigan serves as a director of the company.
The company reported the first-quarter, which ended August 31, 2012, financial results on September 26 with the following highlights:
|Net loss||$2.7 million|
The stock has a $58 price target from the Point and Figure chart. There have been 13 insider buy transactions and three insider sell transactions this year. The company has a book value of $24.82 per share. I am cautiously bullish on the stock.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.