I screened with Open Insider for insider buy transactions filed on October 9. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at these 5 stocks:
1. Genesis Energy (GEL) is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis' operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil, refined products, and certain industrial gases. Genesis' operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.
- James Davison purchased 733,019 shares on October 5 pursuant to a private placement. James Davison has served as a director of the company's general partner since July 2007.
- Grant Sims purchased 216,334 shares on October 5 pursuant to a private placement. Grant Sims has served as a director and Chief Executive Officer of the company's general partner since August 2006.
- Sharilyn Gasaway purchased 32,778 shares on October 5 pursuant to a private placement. Sharilyn Gasaway has served as a director of the company's general partner since March 2010.
The company reported the second-quarter financial results on August 2 with the following highlights:
|Net income||$18.6 million|
|Quarterly dividend||$0.46 per share|
Grant Sims, CEO of Genesis Energy, commented on August 2:
"As we look forward to the rest of the year and into 2013, we, along with our dedicated associates here at Genesis, will continue to do all we can to achieve our goals of delivering double-digit annual growth in distributions, an increasing coverage ratio and a better than investment grade leverage ratio, while never compromising our commitment to safe, responsible and reliable operations."
The stock has a $55 price target from the Point and Figure chart. There have been five insider buy transactions and five insider sell transactions this year. The stock is trading at a forward P/E ratio of 24.85 and has a 5.44% dividend yield. The 200 day moving average is currently at $30 which could act like a support for the stock.
2. 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 758,282 shares on October 5-8, 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 29,357,852 shares of Janus. Janus has 201,329,431 fully diluted shares outstanding which makes Dai Ichi Life Insurance Company a 14.6% 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 seven insider buy transactions and three insider sell transactions this year. The stock is trading at a forward P/E ratio of 14.76 and has a book value of $7.25 per share. The 200 day moving average is currently at $8 which could act like a support for the stock.
3. Javelin (JMI) is a Maryland corporation that invests primarily in hybrid adjustable rate, adjustable rate and fixed rate Agency RMBS and non-Agency RMBS. Javelin is externally managed and advised by Armour Residential Management, an investment advisor registered with the SEC. Javelin Mortgage Investment Corp. has elected to be taxed as a real estate investment trust [REIT] for U.S. Federal income tax purposes, commencing with Javelin's taxable year ended December 31, 2012.
- Daniel Staton purchased 125,000 shares on October 5 pursuant to a private placement. Daniel Staton has been the Non-Executive Chairman of Javelin since June 18, 2012.
- Marc Bell purchased 125,000 shares on October 5 pursuant to a private placement. Marc Bell has been a director of Javelin since June 18, 2012.
Javelin Mortgage Investment Corporation announced on October 3 that it raised an aggregate of $150 million in gross proceeds in its initial public offering and concurrent private placement. The company priced its initial public offering of 7,250,000 shares of common stock at $20.00 per share, raising $145 million in gross proceeds. Javelin has also granted the underwriters a 30-day option to purchase up to an additional 1,087,500 shares of common stock to cover over-allotments, if any.
The company is also selling 250,000 shares of common stock for $20.00 per share in a concurrent private placement, raising $5 million in gross proceeds.
The stock started trading on October 3. There have been two insider buy transactions and there has not been any insider selling since the IPO. I am cautiously bullish on the stock currently.
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 137,500 shares on October 4 and currently controls 133,022,900 shares of the company. The company has 297,836,707 shares outstanding, which makes Mr. Frost a 44.7% 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. American Pacific Corporation (APFC) is a leading custom manufacturer of fine chemicals and specialty chemicals within its focused markets. The company supplies active pharmaceutical ingredients and advanced intermediates to the pharmaceutical industry. For the aerospace and defense industry, the company provides specialty chemicals used in solid rocket motors for space launch and military missiles. The company produces clean agent chemicals for the fire protection industry, as well as electro-chemical equipment for the water treatment industry. The company's products are designed to meet customer specifications and often must meet certain governmental and regulatory approvals.
Cornwall Capital Management purchased 50,145 shares on October 4-8 and 29,235 shares on August 29 - September 4. Cornwall Capital Management currently holds 1,002,181 shares of American Pacific Corporation. American Pacific Corporation has 7,622,591 shares outstanding, which makes Cornwall Capital Management a 13.1% owner of American Pacific Corporation.
The company reported the financial results for its fiscal 2012 third-quarter (ended June 30, 2012) on August 9 with the following highlights:
|Net income||$4.7 million|
The company's outlook for fiscal 2012 has improved. For fiscal 2012, the company expects consolidated revenues (continuing operations) of at least $175.0 million, and adjusted EBITDA (continuing operations) of at least $36.0 million. The revenue outlook reflects the following factors:
- Fine Chemicals segment revenues are anticipated to increase by at least 15% in fiscal 2012. The anticipated increase is supported primarily by growth in revenues from the company's anti-viral products.
- Specialty Chemicals segment revenues are expected to increase slightly in fiscal 2012 as compared to fiscal 2011. The company's revenue outlook for this segment has improved based on current order backlog and the related timing of shipments.
The company is anticipating its capital expenditures for continuing operations, which do not include environmental remediation spending, for fiscal 2012 to be approximately $11.0 million.
The stock has a $20.75 price target from the Point and Figure chart. There have been three insider buy transactions and three insider sell transactions this year. The stock is currently trading at a forward P/E ratio of 10.69. The 200 day moving average is currently at $9.2 which could act like a support for the stock.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in JNS over the next 72 hours.