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Insider Cluster Buying Reported in Several Companies
Posted by: Monica Wolfe (IP Logged)
Date: May 30, 2013 07:21PM
In the past couple of weeks several insiders have been making buys into their companies as their prices drop to or near their 52-week low prices. It is interesting to look at insider buys while the prices of the company are sitting at lows because they can signify a turnaround in the company.
As Peter Lynch says about insider buying, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” The following companies reported insider buys coming from several different insiders during the past two weeks.
ZaZa Energy (ZAZA)
As ZaZa Energy sits near its 52-week low price of $1.19, several insiders made buys into the company. Four insiders have made buys as the price sits near its low.
Chief Accounting Officer Paul Jansen added 5,000 shares at an average price of $1.40. This cost him $7,000. He now owns 58,409 shares of ZaZa. Since his buy the price per share has increased 0.71%.
Director Todd Brooks bought 50,000 at $1.44 per share. This cost the director a total of $72,000. He now owns over 22 million shares of ZaZa Energy. Since his buy the price per share has dropped 2.08%.
CCO and General Counsel Shelby Gaille bought a total of 14,600 shares at an average price of $1.38. This buy cost a total of $20,148. Since this buy the price per share has increased 2.17%. Gaille now owns at least 408,458 shares of ZaZa.
CFO Ian Fay bought 30,000 shares of company stock at an average price of $1.48. This transaction cost Fay $44,400. The CFO now owns over 1 million shares of ZaZa Energy. Since his buy, the price has decreased 4.73%.
ZaZa Energy is a privately held independent exploration and production company focused on the exploration and development of exploration and development of unconventional onshore oil and gas resources in the U.S. Its operations are primarily concentrated in South Texas.
The analysis on ZaZa Energy reports:
· The per share revenue has been in decline for the past five years.
· The cash flow from operations has severe divergence from the reported net income.
ZaZa Energy has a market cap of $140.5 million; its shares were traded at around $1.40 with a P/E ratio of 2.50 and a P/S ratio of 0.70.
There are currently no gurus that hold stake in ZaZa Energy.
TOR Minerals (TORM)
Five insiders made buys into the company this past week as the price sits near the 52-week low price of $10.57.
Director David Hartman bought 5,133 shares at an average price of $9.62 per share. This cost him $49,379. Since his buy, the price per share has increased 19.02%. He holds on to at least 618,313 shares of TOR Minerals.
Director Douglas Hartman, Executive VP of Sales and Marketing Mark Schomp, President and CEO Olaf Karasch and Director Bernard Paulson all bought shares at a price of $11.05. The insiders bought a combined total of 18,708 shares. These buys cost them a combined total of $206,723.
TOR Minerals is a global specialty chemical company engaged in the business of manufacturing and marketing mineral products for use as pigments, pigment extenders, functional fillers and flame retardants used in the manufacture of paints, coatings, plastics and catalysts.
The analysis on TOR Minerals states:
· The company has issued $4.36 million of debt in the past three years.
· The P/B ratio is close to a two-year low of 0.81.
· The P/S ratio is close to a two-year low of 0.66.
If you use Peter Lynch’s method of valuation, you can see in the chart below that TOR Minerals is currently undervalued.
TOR Minerals has a market cap of $34.6 million; its shares were traded around $11.45 with a P/E ratio of 10.50 and a P/S ratio of 0.70.
LivePerson reported five insider buys last week coming from four different insiders. These buys come as the price drops down to a 2-year low.
Executive VP of Global Sales and Marketing Erica Schultz bought 15,000 shares at an average price of $8.95 per share. This cost her $134,250. Since her buy, the price per share has increased 4.58%.
Director William Wesemann made two different buys, adding a total of 30,000 shares of LivePerson stock. These shares traded at an average price of $8.67 per share. This cost the director $260,100. He now holds on to at least 60,000 shares of LivePerson.
CFO Daniel Murphy bought 4,350 shares at $8.52 per share. This cost the CFO a total of $37,062. Since his buy the price per share of the stock has increased 9.86%.
CEO Robert Locascio added the most to his stake by buying an additional 35,640 shares of the company’s stock. The shares traded at $8.56 for a total transaction amount of $305,078. He now holds nearly 5 million shares of his company’s stock. Since his buy, the price per share has increased 9.35%.
These insider buys mark the first insider transactions of 2013 as well as the first insider buys since November 2010.
LivePerson provides online engagement solutions that facilitate real-time assistance and expert advice. The company connects businesses and independent service providers with consumers seeking help on the Internet. LivePerson’s hosted software platform creates more relevant, compelling and personalized online experiences.
The analysis on LivePerson reports:
· The company has no debt
· The price is close to a 2-year low of $8.39.
· The P/B ratio is close to a 3-year low of 2.81.
LivePerson has a market cap of $518.3 million; its shares were traded at around $9.36 with a P/E ratio of 178.00 and P/S ratio of 3.30.
Ron Baron currently holds 1,317,077 shares representing 0.1% of his total portfolio.
Cyclacel Pharmaceuticals (CYCC)
Cyclacel Pharmaceuticals reported three insider buys in the past week.
President and CEO Spiro Rombotis bought 100,000 shares of the company at $3.00 per share. This cost him $300,000. Since the CEO’s buy the price per share has increased 10.67%. Rombotis now holds on to at least 241,416 shares of the company’s stock.
Executive VP of Finance, CFO and COO Paul McBarron bought 12,948 shares of Cyclacel at $3.03 per share. This buy cost the CFO a total of $39,239. Since his buy, the price has jumped 9.57%. He now holds on to at least 70,096.
Director Lloyd Sems bought 33,333 shares of company stock last week. The shares traded at $3.00 for a total transaction amount costing the director $99,999. Since his buy the price per share has gone up 10.67%.
These transactions mark the first insider transactions for the company since December 2011.
Cyclacel Pharmaceuticals is a development-stage biopharmaceutical company dedicated to the development and commercialization of novel, mechanism-targeted drugs to treat human cancers and other serious diseases. The company’s strategy is to build a diversified biopharmaceutical business focused in hematology and oncology based on a development pipeline of novel drug candidates.
The analysis on Cyclacel Pharmaceuticals reports:
· The per share revenue has been in decline for the past five years.
· The operating margin has also been in a five year decline. The average rate of decline per year is 7.4%.
· The company has no debt.
· The company’s price is nearing a three-year low of $2.94.
Cyclacel Pharmaceuticals has a market cap of $37.2 million; its shares were traded at around $3.33 with a P/S ratio of 104.70.
Wilbur Ross currently holds 116,316 shares of Cyclacel, representing 0.06% of his total portfolio.
You can view all insider buys at 52- week lows here.
Guru Discussed: Ron Baron: Current Portfolio, Stock Picks
Stocks Discussed: ZAZA, CYCC, TORM,