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Weekly Top Insider Buys: KO, AXP, CHK, MJN, FTR

March 06, 2011 | About:
insider

gururk

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Weekly highlight of top insider buys: Coca-Cola Company (KO), American Express Company (AXP), Chesapeake Energy Corp. (CHK), Mead Johnson Nutrition Company (MJN), and Frontier Communications Corp. (FTR).

Coca-Cola Company (KO): Director Barry Diller Bought 235,000 Shares

Director of Coca-Cola Company, Barry Diller, bought 235,000 shares on 2/28/2011 at an average price of $65.21.

The Coca-Cola Company is the world's largest beverage company and is the producer and marketer of soft drinks. Coca-cola Company has a market cap of $151.42 billion; its shares were traded at around $65.21 with a P/E ratio of 18.7 and P/S ratio of 4.4. The dividend yield of Coca-Cola Company stocks is 2.8%. Coca-Cola Company had an annual average earning growth of 8.9% over the past 10 years. GuruFocus rated Coca-Cola Company the business predictability rank of 3.5-star.

On February 9, The Coca-Cola Company reported fourth quarter 2010 operating results, with reported worldwide volume growth of 6%, cycling 5% growth in the prior year quarter. For the full year, reported worldwide volume grew 5%. Comparable currency neutral operating income was up 10% in the quarter and 11% for the full year, reflecting a 3% increase in the quarter and a 1% increase for the year as a result of structural changes, principally related to the CCE transaction. This was driven by strong top-line performance as well as a continued focus on cost management and the leveraging of productivity initiatives. Currency had a 1% positive impact on comparable operating income in the quarter and a 3% positive impact for the year.

Coca-Cola Company is in the portfolios of Bill Gates, Donald Yacktman, Mario Gabelli, Tom Gayner, Warren Buffett, Robert Olstein, Jean-Marie Eveillard, Richard Aster Jr, Ruane Cunniff, David Winters, Arnold Van Den Berg, Tweedy Browne, Kenneth Fisher, Chris Davis, Dodge & Cox, and John Hussman.

Last month, Buy: Director Barry Diller and Buy: Director Evan G Greenberg bought shares of KO stock. Sell: Group President J Alexander Jr Douglas sold 12,948 shares last week and Sell: Pres/CEO, CC Refreshments USA Steven A Cahillane sold 44,609 shares in November.

American Express Company (AXP): Director Theodore Leonsis Bought 5,000 Shares

Director of American Express Company, Theodore Leonsis, bought 5,000 shares on 02/25/2011 at an average price of $43.72.

American Express Company is primarily engaged in the business of providing travel related services, financial advisory services and international banking services throughout the world. American Express Company has a market cap of $52.63 billion; its shares were traded at around $43.72 with a P/E ratio of 12.9 and P/S ratio of 2. The dividend yield of American Express Company stocks is 1.6%.

On January 24, American Express Company reported fourth-quarter net income of $1.1 billion, up 48 percent from $716 million a year ago. Diluted earnings per share was $0.88, up 47 percent from $0.60 a year ago. Consolidated total revenues net of interest expense were $7.3 billion, up 13 percent from $6.5 billion a year ago. The increase largely reflects the consolidation of securitized cardmember loans and related debt onto the balance sheet in the first quarter(4). Revenues also reflect higher cardmember spending and higher travel commissions and fees, partially offset by lower interest income due to a smaller loan portfolio, and lower yields on the portfolio.

American Express Company is in the portfolios of Whitney Tilson, Robert Olstein, Jean-Marie Eveillard, Mario Gabelli, Warren Buffett, Tom Gayner, Brian Rogers, Tweedy Browne, James Barrow, Ruane Cunniff, Arnold Van Den Berg, Dodge & Cox, Chris Davis, David Dreman, Mark Hillman, Donald Yacktman, and Ron Baron.

Last month, Buy: Director Theodore Leonsis bought 5,000 shares of AXP stock. Sell: EVP, Human Resources L Kevin Cox and Sell: EVP-Corp. Affairs Thomas A Schick sold shares last month. Sell: Vice Chairman Edward P Gilligan and Sell: CEO Kenneth I Chenault sold shares in January.



Chesapeake Energy Corp. (CHK): Director Merrill A Jr Miller Bought 14,900 Shares

Director of Chesapeake Energy Corp., Merrill A Jr Miller, bought 14,900 shares on 3/03/2011 at an average price of $33.57.

Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $21.95 billion; its shares were traded at around $33.57 with a P/E ratio of 11.4 and P/S ratio of 2.4. The dividend yield of Chesapeake Energy Corp. stocks is 0.8%. Chesapeake Energy Corp. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 2-star.

On February 22, Chesapeake Energy Corporation announced financial and operational results for the 2010 fourth quarter and full year. For the 2010 fourth quarter, Chesapeake reported net income to common stockholders of $180 million ($0.28 per fully diluted common share) and operating cash flow (defined as cash flow from operating activities before changes in assets and liabilities) of $1.186 billion on revenue of $1.975 billion and production of 269 billion cubic feet of natural gas equivalent (bcfe). For the 2010 full year, Chesapeake reported net income to common stockholders of $1.663 billion ($2.51 per fully diluted common share) and operating cash flow of $4.548 billion on revenue of $9.366 billion and production of 1.035 trillion cubic feet of natural gas equivalent.

Chesapeake Energy Corp. is in the portfolios of Richard Snow, CarlIcahn, T Boone Pickens, Charles Brandes, Mason Hawkins, Ronald Muhlenkamp, George Soros, Arnold Schneider,David Dreman, Mario Gabelli, and Ruane Cunniff.

Last week, Buy: Director Merrill A Jr Miller bought 14,900 shares of CHK stock. Buy: Director V Burns Hargis bought 2,310 shares in December. Sell: SVP - HUMAN & CORP RESOURCES Martha A Burger and Sell: SVP, Accounting Controller Michael A Johnson sold shares in February.

Mead Johnson Nutrition Company (MJN): Director James M Cornelius Bought 10,000 Shares

Director of Mead Johnson Nutrition Company, James M Cornelius, bought 10,000 shares on 3/03/2011 at an average price of $59.28.

Mead Johnson Nutrition Company is a pediatric nutrition company. Mead Johnson Nutrition Company has a market cap of $12.13 billion; its shares were traded at around $59.28 with a P/E ratio of 24.3 and P/S ratio of 3.9. The dividend yield of Mead Johnson Nutrition Company stocks is 1.5%.

On January 27, Mead Johnson Nutrition Company reported results for the fourth quarter of 2010. Net sales for the fourth quarter of 2010 totaled $803.7 million, up 13 percent from $714.4 million a year earlier. Sales benefited 7 percent from volume, 4 percent from price and 2 percent from foreign exchange. Earnings before interest and income taxes (EBIT) totaled $146.6 million, up from $113.0 million in 2009. EBIT in the fourth quarter of 2010 was adversely affected by higher commodity and shared service overlap costs. The fourth quarter of 2010 includes $28.1 million of specified items largely relating to IT separation costs. The fourth quarter of 2009 included $54.2 million of specified items consisting of legal, severance, IT separation and IPO-related costs.



Mead Johnson Nutrition Company is in the portfolios of John Keeley, George Soros, Daniel Loeb, Steve Mandel, Mario Gabelli, and Chris Davis.

This month, Buy: Director James M Cornelius and Buy: Director Howard B Bernick bought shares of MJN stock. Buy: Director Peter Gervis Ratcliffe and Buy: Director Steven Altschuler bought shares in January.



Frontier Communications Corp. (FTR): Director Mark S Shapiro Bought 12,200 Shares

Director of Frontier Communications Corp., Mark S Shapiro, bought 12,200 shares on 03/03/2011 at an average price of $8.13.

Frontier Communications Corp., formerly Citizens Communications Company, is a full-service communications provider and one of the largest rural local exchange telephone companies in the country. Frontier Communications Corp. has a market cap of $8.08 billion; its shares were traded at around $8.13 with a P/E ratio of 17 and P/S ratio of 2.2. The dividend yield of Frontier Communications Corp. stocks is 9.3%.

Frontier Communications Corp. had an annual average earning growth of 2.9% over the past 10 years.

On February 23, Frontier Communications Corporation reported fourth-quarter 2010 revenue of $1,358.7 million, operating income of $239.7 million and net income attributable to common shareholders of Frontier of $46.0 million, or $0.05 per share. After excluding $11.3 million for acquisition and integration costs, net income attributable to common shareholders of Frontier for the fourth quarter of 2010 would have been $53.0 million, or $0.05 per share.

Frontier Communications Corp. is in the portfolios of John Keeley, George Soros, Prem Watsa, NWQ Managers, and Mario Gabelli.

This month, Buy: Director Mark S Shapiro bought 12,200 shares of FTR stock. Buy: Director David H Ward bought 5,360 shares in December.

About the author:

gururk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.2/5 (6 votes)

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