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Weekly CEO Buys Highlight: LUB, PG, LEG, BGCP, NOR

November 07, 2010 | About:
Last week’s top five stocks that were bought by their CEos were Luby's Inc, The Procter & Gamble Company, Leggett & Platt Inc, BGC PARTNERS, INC, and Noranda Aluminum Holding. According to GuruFocus Insider Data, these are the largest CEO buys during the past week.

Luby's Inc. (LUB): President and CEO, 10% Owner Christopher James Pappas Bought 156,612 Shares

President and CEO, 10% Owner of Luby's Inc. (LUB) Christopher James Pappas bought 156,612 shares on 11/02/2010 at an average price of $5.4. Luby's, Inc. is a holding company. They operate cafeteria-style restaurants under the name Luby's located in close proximity to retail centers, business developments, and residential areas. Luby's Inc. has a market cap of $151.5 million; its shares were traded at around $5.4 with and P/S ratio of 0.5.

Luby’s recently reported its 4th quarter results. Restaurant sales were $76.8 million, an increase of $5.8 million compared to the same quarter last year. The increase is due to the one-month contribution of the company-owned Fuddruckers locations, partially offset by a $0.4 million decline in restaurant sales at continuing Luby’s locations. Same-store sales, from a total of 96 Luby’s restaurants, decreased approximately 0.5% compared to the same quarter last year.

Buy: COO, 10% Owner Harris J Pappas bought 156,612 shares of LUB stock on 11/02/2010 at the average price of 5.07. Harris J Pappas owns at least 4,610,447 shares after this. The price of the stock has increased by 6.51% since.

The Procter & Gamble Company (PG): COB, Pres. & CEO Robert A Mcdonald Bought 6,423 Shares

COB, Pres. & CEO of The Procter & Gamble Company (PG) Robert A Mcdonald bought 6,423 shares on 10/28/2010 at an average price of $65. The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world.

The Procter & Gamble Company has a market cap of $184.03 billion; its shares were traded at around $65 with a P/E ratio of 17.7 and P/S ratio of 2.3. The dividend yield of The Procter & Gamble Company stocks is 3.1%. The Procter & Gamble Company had an annual average earning growth of 12.3% over the past 10 years. GuruFocus rated The Procter & Gamble Company the business predictability rank of 3.5-star.

PG recently reported first fiscal quarter diluted net earnings per share from continuing operations of $1.02 per share, an increase of five percent and above the Company's guidance range of $0.97 to $1.01. Net sales increased two percent to $20.1 billion behind broad-based volume growth.

Jean-Marie Eveillard owns 617,520 shares as of 06/30/2010, an increase of 48.01% from the previous quarter. This position accounts for 0.27% of the $13.96 billion portfolio of First Eagle Investment Management, LLC. Mario Gabelli owns 421,693 shares as of 06/30/2010, a decrease of 73.87% of from the previous quarter. This position accounts for 0.16% of the $16.22 billion portfolio of GAMCO Investors.

Sell: Global Product Supply Officer R Keith Harrison sold 31,622 shares of PG stock on 11/04/2010 at the average price of 64.74. R Keith Harrison owns at least 117,246 shares after this. The price of the stock has increased by 0.4% since. Other insiders have also decreased their positions in the company.

Leggett & Platt Inc. (LEG): CEO & Pres David S Haffner Bought 5,000 Shares

CEO & Pres of Leggett & Platt Inc. (LEG) David S Haffner bought 5,000 shares on 11/02/2010 at an average price of $20.5. Leggett & Platt, Inc. is one of the manufacturers of engineered products serving several major markets. Leggett & Platt Inc. has a market cap of $3.11 billion; its shares were traded at around $20.5 with a P/E ratio of 17.3 and P/S ratio of 1. The dividend yield of Leggett & Platt Inc. stocks is 5%.

Leggett & Platt reported third quarter earnings per diluted share of $.31 (including a $.02 per share net LIFO expense). In the third quarter of 2009, earnings were $.34 per share (including a $.05 per share net LIFO benefit). Compared to third quarter 2009, third quarter 2010 earnings benefited from higher unit volumes and lower effective tax rates; these factors were more than offset by an increase in net LIFO expense (of $.07 per share) and higher-cost raw materials.

Richard Aster Jr owns 19,425 shares as of 06/30/2010, which accounts for 0.02% of the $2.19 billion portfolio of Meridian Fund.

Sell: Senior Vice President - CFO Matthew C Flanigan sold 20,000 shares of LEG stock on 07/27/2010 at the average price of 22.09. Matthew C Flanigan owns at least 156,180 shares after this. The price of the stock has decreased by 7.2% since.

BGC PARTNERS, INC. (BGCP): Chairman and CEO, 10% Owner Howard W Lutnick Bought 13,668 Shares

Chairman and CEO, 10% Owner of BGC PARTNERS, INC. (BGCP) Howard W Lutnick bought 13,668 shares on 11/03/2010 at an average price of $7.61. BGC PARTNERS, INC. is a global full-service inter-dealer broker, specializing in the trading of financial instruments and related derivatives products. Bgc Partners, Inc. has a market cap of $675.8 million; its shares were traded at around $7.61 with a P/E ratio of 16.9 and P/S ratio of 0.5. The dividend yield of Bgc Partners, Inc. stocks is 7.6%.

For the third quarter of 2010, revenues for distributable earnings were $327.0 million, compared with $291.2 million a year earlier. BGC Partners’ GAAP revenues were $326.5 million compared with $289.4 million in the third quarter of 2009.

Buy: Director John H Dalton bought 9,000 shares of BGCP stock on 07/21/2010 at the average price of 4.89. John H Dalton owns at least 49,807 shares after this. The price of the stock has increased by 55.62% since.

Noranda Aluminum Holding (NOR): Pres/CEO Layle Kiplind Smith Bought 5,000 Shares

Pres/CEO of Noranda Aluminum Holding (NOR) Layle Kiplind Smith bought 5,000 shares on 11/02/2010 at an average price of $12.04. Noranda Aluminum Holding Corporation, headquartered in Franklin, Tennessee, is a North American integrated producer of primary aluminum products and rolled aluminum coils. Noranda Aluminum Holding has a market cap of $669.2 million; its shares were traded at around $12.04 with and P/S ratio of 0.9.

NOR recently reported its third quarter 2010 results. For the quarter, Noranda's performance resulted in diluted earnings per share of $0.45 on net income of $25.2 million. These results include the after-tax positive impact of special items of $16.6 million or $0.29 per diluted share. During the quarter, operating cash flow generated $31.0 million and Adjusted EBITDA was $33.0 million.

HOTCHKIS & WILEY bought 2,490,300 shares in the quarter that ended on 06/30/2010, which is 0.12% of the $13.48 billion portfolio of HOTCHKIS & WILEY Capital Management LLC.

Buy: Director Richard B Evans bought 10,000 shares of NOR stock on 09/14/2010 at the average price of 8.27. Richard B Evans owns at least 10,000 shares after this. The price of the stock has increased by 45.59% since.

About the author:

guruyt
Jonathan holds an MBA from the Richard Ivey School of Business at the University of Western Ontario where he studied value investing with Dr. George Athanassakos (Ben Graham Chair in Value Investing). Jonathan has a passion for finance and investing that radiates from the writings on this site. Visit his blog.

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