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Triple Buys: 4 Stocks with Multiple Insider Buys, Guru Buys and Buybacks

February 08, 2012 | About:
I was playing around with GuruFocus’ Triple Buy screen today. It’s a pretty interesting tool and allows you to set parameters for insider buying, guru buys, and share buybacks from the company. I set it to have at least two insider buys, two guru buys, and more than 1% of the shares repurchased. This was a pretty strict screen and only returned four stocks.

One of them, ModusLink Global Solutions (MLNK) is a supply chain management service provider. I had actually written about them back in March of last year here: ModusLink Global Solutions Pays Out a Special Dividend, But Gurus Had Sold Out. Arnold Schneider and Jim Simons are still owners.

Exelis (XLS) was a spin-off from ITT last year. They are a defense and information solutions company. I own the stock, but hate the name. James Barrow and Brian Rogers are owners. In fact, Barrow owns 7% of the outstanding shares. CEO David Melcher bought shares at the end of last year, as did two directors. I couldn’t tell you how or why they bought back shares since they just started trading in October, but the screen says they did. The spin-off price was $11.50. It trades at $10 now and is cheap.

SunCoke Energy (SXC) produces metallurgical coke, which is used in the steel-making process. They operate coal mining and coke operations and were spun-off from Sunoco (SUN) in July. Shares are slightly down in that time period. They’ve had a lot of insider buying recently with the CEO, CFO and COO all buying shares since December. Daniel Loeb and Paul Tudor Jones both own shares in the company.

Multimedia Games Holding Company (MGAM) is a company that I hadn’t previously been aware of. Seth Klarman owns more than 9% of the outstanding shares of this game maker. Think bingo, casino games, and video lottery. It is always better to be the house than the gambler. I guess in this case Multimedia Games is a bit like the General Store to the gold miners. Jim Simons and Chuck Royce are also owners. They’ve had a few directors buy in the last year. The company has also bought back shares.

This is a pretty interesting tool and helped me discover a stock, Multimedia Games, which I may do some more research on. It also picked up two spin-offs, which are always good to follow. I like the idea behind the screen and I’ll definitely be using it again in the future and writing about some of the more notable stocks that I find. I recommend taking a look yourself. You can find it at the Triple Buy Screen under the Insider Trading tab.

Long XLS, ITT
  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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About the author:

Steven Kiel
Steven Kiel is the president and chief investment officer for Arquitos Capital Management, a Virginia-based investment management firm. He is a graduate of George Mason School of Law and a captain in the Army Reserves. He manages two spoke funds, The Freedom Fund, a value-oriented portfolio, and The Hayek Fund, a portfolio dedicated to free market principles. He can be contacted at steven.kiel@arquitos.com or through the firm's website at www.arquitos.com.

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