Insightful Investor's Instablog Some of our most popular articles to give an idea on what we write about: http://seekingalpha.com/article/309799-how-to-make-money-from-u-s-demographic-changes http://seekingalpha.com/article/296491-whether-the-massive-call-buying-in-annaly-and-other-stocks-is-a-signal-to-buy http://seekingalpha.com/article/298416-strong-insider-buying-could-give-us-a-reason-to-invest-in-these-stocks http://seekingalpha.com/article/293179-aaa-rated-high-dividend-quality-stocks-currently-on-sale http://seekingalpha.com/article/299628-7-great-international-stocks-for-value-investors We seek to simply replicate the time tested value strategies of Graham, Buffett, Munger, Pabrai, Greenblatt, Burry, Klarman, etc. and estimating an intrinsic value :). Interested in all investments, ie Stocks, Options, Real Estate, Commodities, Bonds, Derivatives, etc. Insightful Investor http://seekingalpha.com/author/insightful-investor/instablog 7 Notable Insider Purchases http://seekingalpha.com/instablog/1007496-insightful-investor/248071-7-notable-insider-purchases?source=feed 248071 We frequently scan for notable insider activity as it's widely viewed as a strong precursor for great things to come in the company's near future. These stocks below are ones that recently caught our attention.

United Therapeutics Corporation (UTHR), a biotechnology company, engages in the development and commercialization of therapeutic products for patients with chronic and life-threatening diseases in the United States and Internationally. On Dec. 19-Dec. 20 CEO Martine Rothblatt collectively bought 11,283 shares bringing his total ownership to over 656,000 shares.

Affymax, Inc. (AFFY), a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. On Dec. 19, board director Peter Walker bought 16,540shares and this was more significant in the fact that it is the only shares he directly owns. He may see real good value at this point and possibly be buying more in the near future.

Support.com, Inc. (SPRT) provides online care services for the digital home and small business primarily in North America. On Dec. 19, major shareholder RGM Capital bought a massive 114,900 shares pushing their total owernship to over 6.15 million shares now indicating strong bullishness in SPRT.

ViroPharma Incorporated (VPHM), together with its subsidiaries, engages in the development and commercialization of therapeutic products that address serious diseases in the United States and internationally. On Dec. 14, major shareholder Baker Brothers Life Sciences Capital bought a considerable 291,706 shares and now holds a big 9.84 million shares.

Glu Mobile Inc. (GLUU) engages in the design, marketing, and sale of casual and traditional mobile games worldwide. On Dec. 14, board director Matthew Drapkin bought a huge 447,097 shares and now holds more than 1.6 million shares collectively.

Sunovia Energy Technologies, Inc. (SUNV.OB), together with its subsidiaries, engages in the development and sale of light emitting diode (LED) lighting products in the United States. On Dec. 15, CEO Arthur Buckland bought a big 10,000,000 shares and now holds directly 35 million shares.

Memorial Production Partners LP (MEMP) focuses on acquiring, developing, producing, and operating oil and natural gas properties in North America. On Dec. 14, President and CEO John Weinzierl bought a considerable 105,263 shares and this is interesting as these are the only shares he owns either directly or indirectly. Possibly he sees great value at these levels and will continue to purchase more shares.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I wrote one article where I looked and saw the title was the same (Although it is a widely used one as well which should be pointed out) and had different analysis with my stocks. Why isn't there a review/leniency/probation/chance for me to explain as I believe I've done great work for Seeking Alpha and Seeking Alpha has been a great partner for me?]]> Tue, 27 Dec 2011 20:39:12 -0500 We frequently scan for notable insider activity as it's widely viewed as a strong precursor for great things to come in the company's near future. These stocks below are ones that recently caught our attention.

United Therapeutics Corporation (UTHR), a biotechnology company, engages in the development and commercialization of therapeutic products for patients with chronic and life-threatening diseases in the United States and Internationally. On Dec. 19-Dec. 20 CEO Martine Rothblatt collectively bought 11,283 shares bringing his total ownership to over 656,000 shares.

Affymax, Inc. (AFFY), a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. On Dec. 19, board director Peter Walker bought 16,540shares and this was more significant in the fact that it is the only shares he directly owns. He may see real good value at this point and possibly be buying more in the near future.

Support.com, Inc. (SPRT) provides online care services for the digital home and small business primarily in North America. On Dec. 19, major shareholder RGM Capital bought a massive 114,900 shares pushing their total owernship to over 6.15 million shares now indicating strong bullishness in SPRT.

ViroPharma Incorporated (VPHM), together with its subsidiaries, engages in the development and commercialization of therapeutic products that address serious diseases in the United States and internationally. On Dec. 14, major shareholder Baker Brothers Life Sciences Capital bought a considerable 291,706 shares and now holds a big 9.84 million shares.

Glu Mobile Inc. (GLUU) engages in the design, marketing, and sale of casual and traditional mobile games worldwide. On Dec. 14, board director Matthew Drapkin bought a huge 447,097 shares and now holds more than 1.6 million shares collectively.

Sunovia Energy Technologies, Inc. (SUNV.OB), together with its subsidiaries, engages in the development and sale of light emitting diode (LED) lighting products in the United States. On Dec. 15, CEO Arthur Buckland bought a big 10,000,000 shares and now holds directly 35 million shares.

Memorial Production Partners LP (MEMP) focuses on acquiring, developing, producing, and operating oil and natural gas properties in North America. On Dec. 14, President and CEO John Weinzierl bought a considerable 105,263 shares and this is interesting as these are the only shares he owns either directly or indirectly. Possibly he sees great value at these levels and will continue to purchase more shares.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I wrote one article where I looked and saw the title was the same (Although it is a widely used one as well which should be pointed out) and had different analysis with my stocks. Why isn't there a review/leniency/probation/chance for me to explain as I believe I've done great work for Seeking Alpha and Seeking Alpha has been a great partner for me?]]> uthr affy sprt vphm gluu sunv.ob memp insider-ownership Notable Stocks With Unusual Options Activity http://seekingalpha.com/instablog/1007496-insightful-investor/244579-notable-stocks-with-unusual-options-activity?source=feed 244579 described here. These companies below had options volume that caught my eye on December 12.

Research In Motion Limited (RIMM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. There was particularly strong volume in the Feb 19 calls with over 10,500 being bought aggressively against just only over 500 in open interest. Since these are being bought a few months out, this is most likely continued optimism towards a potential takeover. With RIMM trading at just a 3x trailing P/E, 4x forward P/E, .4x P/S and EV/S, .9x P/B, just 1.4x EV/EBITDA, and over $2/share in net cash with no debt, I think it makes for a nice speculative buy. I say speculative since RIMM's technology has clearly declined in value as Apple's (AAPL) iPhone and Google's (GOOG) Android phone keep gaining market share, but RIMM's existing patents and hopes of turning things around are plausible making this options purchase a decent move.

Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. There was strong action recently described here and again now in the Feb 40 puts with over 2,700 changing hands against only 199 in open interest. However, it looks as though investors were selling this at the put price meaning they're are bullish on a $40 price floor. I'm not so sure longer-term on RAI, and for that matter Altria Group (MO), Lorillard (LO), and other tobacco stocks due to the declining revenue trends, ever increasing government taxes, and strong push to keep pushing down its use. Moreover, I must say I'm not a fan of smoking so I may have some bias against it.

Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide and represent some attractive value as we brought up here. There was almost 3,500 Jan 65 calls changing hands, but didn't necessarily indicate bullishness as they weren't being bought aggressively. Either way at just a 15x trailing P/E, 12x forward P/E, 3.6% dividend yield, and massive $11B net cash position, JNJ makes for a nice holding. 

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I didn't know how else to respond to the feedback, but I resubmitted as I made the suggested change to Feb. call and provided more analysis..what system to game are you talking about?Moreover, feedback for the beta-test, I think being able to respond to editor feedback more timely would be greatly helpful as is the case here. Also, corrections are moving much slower in case the team doesn't know. Lastly, articles that are premium sometimes don't get that classification . Overall a much nicer lay-out and nice tools added. Great job!Best, Brian]]> Wed, 14 Dec 2011 18:50:23 -0500 described here. These companies below had options volume that caught my eye on December 12.

Research In Motion Limited (RIMM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. There was particularly strong volume in the Feb 19 calls with over 10,500 being bought aggressively against just only over 500 in open interest. Since these are being bought a few months out, this is most likely continued optimism towards a potential takeover. With RIMM trading at just a 3x trailing P/E, 4x forward P/E, .4x P/S and EV/S, .9x P/B, just 1.4x EV/EBITDA, and over $2/share in net cash with no debt, I think it makes for a nice speculative buy. I say speculative since RIMM's technology has clearly declined in value as Apple's (AAPL) iPhone and Google's (GOOG) Android phone keep gaining market share, but RIMM's existing patents and hopes of turning things around are plausible making this options purchase a decent move.

Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. There was strong action recently described here and again now in the Feb 40 puts with over 2,700 changing hands against only 199 in open interest. However, it looks as though investors were selling this at the put price meaning they're are bullish on a $40 price floor. I'm not so sure longer-term on RAI, and for that matter Altria Group (MO), Lorillard (LO), and other tobacco stocks due to the declining revenue trends, ever increasing government taxes, and strong push to keep pushing down its use. Moreover, I must say I'm not a fan of smoking so I may have some bias against it.

Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide and represent some attractive value as we brought up here. There was almost 3,500 Jan 65 calls changing hands, but didn't necessarily indicate bullishness as they weren't being bought aggressively. Either way at just a 15x trailing P/E, 12x forward P/E, 3.6% dividend yield, and massive $11B net cash position, JNJ makes for a nice holding. 

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I didn't know how else to respond to the feedback, but I resubmitted as I made the suggested change to Feb. call and provided more analysis..what system to game are you talking about?Moreover, feedback for the beta-test, I think being able to respond to editor feedback more timely would be greatly helpful as is the case here. Also, corrections are moving much slower in case the team doesn't know. Lastly, articles that are premium sometimes don't get that classification . Overall a much nicer lay-out and nice tools added. Great job!Best, Brian]]> bbry aapl goog rai mo lo jnj options Not Surprised By Fed's Announcement http://seekingalpha.com/instablog/1007496-insightful-investor/244743-not-surprised-by-fed-s-announcement?source=feed 244743
European Crisis still isn't solved, still a lot of economic carnage, etc., etc., Were any of you really suprised?]]> Tue, 13 Dec 2011 17:51:29 -0500
European Crisis still isn't solved, still a lot of economic carnage, etc., etc., Were any of you really suprised?]]> 7 Stocks With Unusual Options Activity To Examine Before Making Your Next Trade http://seekingalpha.com/instablog/1007496-insightful-investor/236280-7-stocks-with-unusual-options-activity-to-examine-before-making-your-next-trade?source=feed 236280
Yahoo! Inc. (YHOO), together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide.  There was bullish options activity on Nov. 14 with over 19,000 contracts changing hands on the Nov 17 calls specifically.  YHOO recently had bullish options activity here and I'd follow buyers here as only a speculative buy since YHOO is still decently priced at a trailing 19x P/E, forward 18x P/E, virtually no debt and over $1.50/share in net cash, and more credible sources discussing a buy-out any day now which would most likely provide a nice surge in the stock price and these options specifically.

The Blackstone Group, L.P. (BX), together with its subsidiaries, provides alternative asset management and financial advisory services worldwide.  There was particularly strong options activity on the Jan 2013 15 calls trading almost 5,500 contracts.  They weren't bought aggressively though, so I wouldn't see it as bullish and BX looks a little overpriced to me at 1.7x P/B, 2.1x P/S, 4.7x EV/S, and losing over $150M in net income this past year. Moreover, BX cut its dividend in half earlier this year and with this ugly operating history, it wouldn't be a surprise to see it cut further.  I'd stay away from BX for now.

General Motors (GM) operates as a global automaker or predominately cars and trucks.  There was particularly strong volume in the Nov 13 puts with well over 13,000 contracts changing hands. These weren't bought aggressively, so I wouldn't see it as bearish and GM has some very favorable metrics at a 5x trailing and forward P/E multiple, .4x PEG, .2x P/S, .1x EV/S, 1x P/B, and very strong $20B net cash position.  I'd be a buyer of GM in fact now and look at buying at the deep in the money Jan 2013 13 calls at $11.

Comcast (CMCSK), together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally.  There was strong volume in the Dec 22 puts trading 6,004 contracts against only 723 in open interest.  This look to be a bullish sale as the investor sold them aggressively and seems to like an entry price at $22. The company has reasonable valuations at 16x trailing P/E, 12x forward P/E, 1.2x P/S, 1.3x P/B, and consistently growing 2% dividend yield.  I think selling these puts are a great idea or selling Comcast (CMCSA) class A shares at the same Dec 22 puts at $.80/share offers a nice alternative as well as CMCSA has four times the liquidity of CMCSK's common stock while offering the same dividend and valuations.

Avon Products (AVP) engages in manufacturing and marketing beauty and related products in worldwide. There was very strong activity in the Dec 16 puts trading 17,434 contracts against only 383 in open interest. This look to be in fact bullish since these were sold aggressively and the investor seems to believe that $16 is a nice entry point. AVP looks attractively priced at 10x forward and trailing P/E, .7x P/S, .9x EV/S, 6.6x EV/EBITDA, and consistently growing 5.2% dividend.  I think AVP makes for a buy at these levels and at $16 AVP would have a very nice 5.8% yield.  I'd follow suit and sell these Dec 16 puts.





Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> Mon, 14 Nov 2011 17:20:52 -0500
Yahoo! Inc. (YHOO), together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide.  There was bullish options activity on Nov. 14 with over 19,000 contracts changing hands on the Nov 17 calls specifically.  YHOO recently had bullish options activity here and I'd follow buyers here as only a speculative buy since YHOO is still decently priced at a trailing 19x P/E, forward 18x P/E, virtually no debt and over $1.50/share in net cash, and more credible sources discussing a buy-out any day now which would most likely provide a nice surge in the stock price and these options specifically.

The Blackstone Group, L.P. (BX), together with its subsidiaries, provides alternative asset management and financial advisory services worldwide.  There was particularly strong options activity on the Jan 2013 15 calls trading almost 5,500 contracts.  They weren't bought aggressively though, so I wouldn't see it as bullish and BX looks a little overpriced to me at 1.7x P/B, 2.1x P/S, 4.7x EV/S, and losing over $150M in net income this past year. Moreover, BX cut its dividend in half earlier this year and with this ugly operating history, it wouldn't be a surprise to see it cut further.  I'd stay away from BX for now.

General Motors (GM) operates as a global automaker or predominately cars and trucks.  There was particularly strong volume in the Nov 13 puts with well over 13,000 contracts changing hands. These weren't bought aggressively, so I wouldn't see it as bearish and GM has some very favorable metrics at a 5x trailing and forward P/E multiple, .4x PEG, .2x P/S, .1x EV/S, 1x P/B, and very strong $20B net cash position.  I'd be a buyer of GM in fact now and look at buying at the deep in the money Jan 2013 13 calls at $11.

Comcast (CMCSK), together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally.  There was strong volume in the Dec 22 puts trading 6,004 contracts against only 723 in open interest.  This look to be a bullish sale as the investor sold them aggressively and seems to like an entry price at $22. The company has reasonable valuations at 16x trailing P/E, 12x forward P/E, 1.2x P/S, 1.3x P/B, and consistently growing 2% dividend yield.  I think selling these puts are a great idea or selling Comcast (CMCSA) class A shares at the same Dec 22 puts at $.80/share offers a nice alternative as well as CMCSA has four times the liquidity of CMCSK's common stock while offering the same dividend and valuations.

Avon Products (AVP) engages in manufacturing and marketing beauty and related products in worldwide. There was very strong activity in the Dec 16 puts trading 17,434 contracts against only 383 in open interest. This look to be in fact bullish since these were sold aggressively and the investor seems to believe that $16 is a nice entry point. AVP looks attractively priced at 10x forward and trailing P/E, .7x P/S, .9x EV/S, 6.6x EV/EBITDA, and consistently growing 5.2% dividend.  I think AVP makes for a buy at these levels and at $16 AVP would have a very nice 5.8% yield.  I'd follow suit and sell these Dec 16 puts.





Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> hd yhoo bx gm cmcsk cmcsa avp Options Look at the Options Activity here before making your trade http://seekingalpha.com/instablog/1007496-insightful-investor/235059-look-at-the-options-activity-here-before-making-your-trade?source=feed 235059 cheap dividend stocks. Another strong indicator is insider activity in stocks, such as the ones described here. Finally, another indicator is looking at unusual option activity, as I recently brought up here, while some on Nov. 9 caught my eye below. Again, unusual option activity always catches my attention since options are generally a strong indicator to future movement as they provide great leverage for an investor.

Microsoft (MSFT) develops, licenses, and supports a range of software products and services for various computing devices worldwide. It had abnormal options activity again on Nov. 9, after I recently wrote about it here, with the Nov 27 having a massive 52,307 contracts trading hands.  The contracts were not being bought aggressively though so I wouldn't say this is bullish, however the fundamentals of MSFT still remain strong at trailing 9.5x P/E, forward 8.5x P/E, .8x PEG, over $40B in net cash, and 3.1% dividend.  I think with such a nice yield, MSFT is great as a covered call with the Jan 2013 27 selling for a nice $2.40 premium, while you collect the dividend.

Citigroup (C), a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services.  The stock got hammered over 8% on Nov. 9 and there was particularly strong volume on Nov. 9 in the Nov 34 trading 13,782 contracts against only 14,704 in open interest.  The contracts weren't being bought aggressively so I wouldn't see it as bullish, moreover I don't see a strong catalyst for C to shoot up 20% by Nov. 18 as these contracts are betting on.  I think if one is bullish on C, the Jan 34 puts selling at $6.40 allow you to take advantage of these sizeable premiums while benefiting if C were to rise from here.

3M Company (MMM), together with subsidiaries, operates as a diversified technology company worldwide.   There was strong volume on Nov. 9 in the Nov 82.5 calls trading 5,510 contracts against just 4,020 in open interest and the Nov 80 puts had 8,783 contracts trading higher against only 2,226 in open interest.  I wouldn't make much of this action as it's hard to see and moreover MMM seems to just be a victim of the market sell-off. Moreover, it has great fundamentals at a trailing 13.4x P/E, 12.5x forward P/E, 1x PEG, over $4B in FCF this past year, and respectable 2.8% yield.  I'd look to either have this as a covered call or deep in the money call as I'm more bullish than bearish on MMM.

Janus Capital Group (JNS) is a publicly owned asset management holding company.  There was a massive 20,183 Dec 6 puts being bought aggresively against only 2,077 in open interest showing strong bearishness on Nov. 9.  The market volatility is most likely a negative for their funds as people tend to withdraw money during these times, and their projected to have declining earnings going from a trailing 6.5x P/E to over 10x.  I think I'd follow this bearishness and look to buy the Dec 6 puts as a hedge if anything against my other long positions.

Jefferies Group (JEF), together with its subsidiaries, operates as a securities and investment banking company.  There was massive volume in the deep out of the money Dec 6 put options trading over 22,000 contracts on Nov. 9.  JEF has been getting clobbered of late due to their European bond exposure and until that clears, expect more volatility.  I wouldn't be short though as the great investment minds of Leucadia own approximately 30% and definitely have the financial muscle to buyout the remaining 70% if JEF keeps getting cheaper.













Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> Wed, 09 Nov 2011 20:55:55 -0500 cheap dividend stocks. Another strong indicator is insider activity in stocks, such as the ones described here. Finally, another indicator is looking at unusual option activity, as I recently brought up here, while some on Nov. 9 caught my eye below. Again, unusual option activity always catches my attention since options are generally a strong indicator to future movement as they provide great leverage for an investor.

Microsoft (MSFT) develops, licenses, and supports a range of software products and services for various computing devices worldwide. It had abnormal options activity again on Nov. 9, after I recently wrote about it here, with the Nov 27 having a massive 52,307 contracts trading hands.  The contracts were not being bought aggressively though so I wouldn't say this is bullish, however the fundamentals of MSFT still remain strong at trailing 9.5x P/E, forward 8.5x P/E, .8x PEG, over $40B in net cash, and 3.1% dividend.  I think with such a nice yield, MSFT is great as a covered call with the Jan 2013 27 selling for a nice $2.40 premium, while you collect the dividend.

Citigroup (C), a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services.  The stock got hammered over 8% on Nov. 9 and there was particularly strong volume on Nov. 9 in the Nov 34 trading 13,782 contracts against only 14,704 in open interest.  The contracts weren't being bought aggressively so I wouldn't see it as bullish, moreover I don't see a strong catalyst for C to shoot up 20% by Nov. 18 as these contracts are betting on.  I think if one is bullish on C, the Jan 34 puts selling at $6.40 allow you to take advantage of these sizeable premiums while benefiting if C were to rise from here.

3M Company (MMM), together with subsidiaries, operates as a diversified technology company worldwide.   There was strong volume on Nov. 9 in the Nov 82.5 calls trading 5,510 contracts against just 4,020 in open interest and the Nov 80 puts had 8,783 contracts trading higher against only 2,226 in open interest.  I wouldn't make much of this action as it's hard to see and moreover MMM seems to just be a victim of the market sell-off. Moreover, it has great fundamentals at a trailing 13.4x P/E, 12.5x forward P/E, 1x PEG, over $4B in FCF this past year, and respectable 2.8% yield.  I'd look to either have this as a covered call or deep in the money call as I'm more bullish than bearish on MMM.

Janus Capital Group (JNS) is a publicly owned asset management holding company.  There was a massive 20,183 Dec 6 puts being bought aggresively against only 2,077 in open interest showing strong bearishness on Nov. 9.  The market volatility is most likely a negative for their funds as people tend to withdraw money during these times, and their projected to have declining earnings going from a trailing 6.5x P/E to over 10x.  I think I'd follow this bearishness and look to buy the Dec 6 puts as a hedge if anything against my other long positions.

Jefferies Group (JEF), together with its subsidiaries, operates as a securities and investment banking company.  There was massive volume in the deep out of the money Dec 6 put options trading over 22,000 contracts on Nov. 9.  JEF has been getting clobbered of late due to their European bond exposure and until that clears, expect more volatility.  I wouldn't be short though as the great investment minds of Leucadia own approximately 30% and definitely have the financial muscle to buyout the remaining 70% if JEF keeps getting cheaper.













Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> msft c mmm jns jef Options Any idea when the Greek contagion will come to an end? http://seekingalpha.com/instablog/1007496-insightful-investor/228719-any-idea-when-the-greek-contagion-will-come-to-an-end?source=feed 228719 Thu, 20 Oct 2011 12:23:58 -0400 nbg