4 Stocks With Recent CEO Buys of at Least $100,000

by: The Keating Letter

This week’s CEO insider buy edition has four stocks with buys of at least $100,000. We have one IPO, one stock that previously was on the list, and two newcomers where the CEO bought after recent earnings releases. Below are the four stocks with recent CEO buys of at least $100,000:

Hasbro (NASDAQ:HAS) CEO Brian Goldner bought 5,000 shares on July 20 at an average price of $39.55 per share for a total transaction of $197,800. Hasbro is fresh off 52-week lows after a solid quarterly earnings report on July 18. Second quarter revenue was up 23% YoY and EPS beat analyst expectations by 4 cents. The revenue gains were attributed to Transformers sales. On the negative side, the company’s games division saw falling revenue and a reorganization that forced a charge against earnings. Chief competitor Mattel (NASDAQ:MAT) saw even better earnings with revenue gains of 14% and a 56% EPS increases. Analysts are positive on the stock, with Goldman Sachs and Morgan Joseph rating it a buy.

Oiltanking Partners (NYSE:OILT) completed its IPO on July 19. Shares had begun trading on July 14. Oiltanking Partners “provides integrated terminaling, storage, pipeline, and related services for third-party companies engaged in the production, distribution, and marketing of crude oil, refined petroleum products, and liquefied petroleum gas.” The partnership will pay out a dividend of $1.35 this year, making its yield 5.6% at today’s share price.

Seven insiders participated in the IPO, including CEO Carlin Conner. Conner bought 12,000 shares at the IPO price of $21.50. The effective date on these shares was July 19 and the total purchase price was $258,000. Todd Johnson had a good article here at Seeking Alpha with some background information on the company.

Medtox Scientific (NASDAQ:MTOX) CEO Richard Braun bought $145,700 worth of shares on July 18 at $14.57 per share. The company hit a 52-week high just weeks ago, but shares were crushed on its recent earnings report even though net income was up 40%. EPS was 16 cents, missing analyst expectations by 2 cents. Medtox primary business is selling lab service and drug tests. Ariel Investment’s John Rogers, who I recently profiled, owns 1.7% of the outstanding shares of the company.

Kingold Jewelry (NASDAQ:KGJI): On July 19, CEO Hong Jia Zhi reported insider purchases from July 7 to July 15. These purchases totaled 70,000 shares at prices between $1.52 and $1.97 totaling $120,400. I had previously highlighted Zhi’s purchases from June and early July. He’s obviously trying to show shareholders and potential shareholders that he believes in the company. Since he started buying shares on June 8, the stock is up about 10%. If it turns out that this Chinese jeweler is not a fraud like some of the other Chinese RTOs, then the current trading price is absurdly low and a terrific buying opportunity. If that’s the case, shares should trade closer to $8. Of course, it is difficult to completely verify much of the information surrounding the company, so buy in at your own risk. I’m continuing to monitor the company.

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