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Weekly CEO Buys Highlight: Chesapeake Energy Corp., Cenveo Inc., NCI Building Systems Inc., 3Com Corp., ConAgra Foods Inc.

April 11, 2008 | About:

Highlight of weekly top CEO buys: Chesapeake Energy Corp. (CHK), Cenveo Inc. (CVO), NCI Building Systems Inc. (NCS), 3Com Corp. (COMS), ConAgra Foods Inc. (CAG).

Chesapeake Energy Corp. (CHK): Chairman & CEO, Director Aubrey K. Mcclendon Bought 500,000 Shares

Chesapeake Energy Corporation (CHK), the third largest oil and natural gas exploration and Production Company in U.S., announced that they will purchase Pier 1 Import’s Fort Worth Headquarters for $104 million. The company will offer up to 20 Million shares to pay-off debts. Chesapeake Energy will add $275 million for 2008 and $675 million to the spending budget for expanding its production goals. Analysts downgraded Chesapeake Energy Corp. based on the company’s recent equity offering, which translates to borrowing more than what the company planned to spend. Chesapeake reported a fourth quarter profit dropped nearly 36% as profits fell from heavy tax charges of $180 million. For the 2007 year, net income plunged to $1.45 billion or $2.62 per share from $2 billion or $4.35 per share a year ago. The 2007 revenue rose to $7.8 billion from $7.33 billion.

As David Dreman and David Winters bought shares in Chesapeake, Kenneth Fisher and Richard Snow reduced their shares around 25%; also Jean-Marie Eveillard sold out his CHK holdings. Mason Hawkins, Ruane Cunniff, and John Keeley own kept their shares the same.

Chairman & CEO, Director Aubrey K. Mcclendon bought 500,000 shares on 4/2/08 at $45.75. Since late-February, Mcclendon has bought a total of 1,592,400 shares between $45.64 and $46.46.

A queue of insider sells were made between $38.53 and $48.24 since early this year: SVP Martha A. Burger sold 85,000 shares; EVP Marcus C. Rowland sold 51,030 shares; SVP Henry J. Hood sold 32,759 shares; EVP Steven C. Dixon sold 20,000 shares; EVP Douglas J. Jacobson sold 15,625 shares; and EVP J. Mark Lester sold 6,894 shares.

Chesapeake Energy Corp. has a market cap of $24.65 billion; its shares were traded at around $47.97 with a P/E ratio of 18.31 and P/S ratio of 3.23. The dividend yield of Chesapeake Energy Corp. stocks is 0.6%.

Cenveo Inc. (CVO): Chairman and CEO, Director Robert G. Burton Sr. Bought 66,388 Shares

The print and visual communications service provider Cenveo Inc. (CVO) reported their GAAP net income for the fourth quarter at $18.3 million or $0.33 per diluted share. The company’s gross profit margins increased to 21.7% despite heavy restructuring charges of $8 million. For the 2007 year, GAAP net income totaled $4.03 million or $0.70 per diluted share on a gross profit margin of 20%.

John Keeley owns 1,617,500 shares as of September of last year.

Chairman and CEO, Director of Cenveo Inc. Robert G. Burton Sr. bought 66,388 shares during the past week at $11.37. Since November, CEO Robert G. Burton Sr. has purchased a total of 260,150 shares at $10.43 to $18.08. The CFO of Cenveo, Mark S. Hiltwein bought a total of 10,500 shares at $15.23 to $18.12. Also, Director Robert Obernier bought a total 35,000 shares between $10.42 and $20.54.

Cenveo Inc. has a market cap of $603.33 million; its shares were traded at around $10.72 with a P/E ratio of 14.36 and P/S ratio of 0.29.

NCI Building Systems Inc. (NCS): Chairman, President & CEO, Director Norman C. Chambers Bought 8,000 Shares

For the quarter that ended in January of 2008, NCI Building Systems, Inc. (NCS) narrowed profits 28% to $7.5 million, or 39 cents per share as steel prices increased. The non-residential construction products manufacturer’s r revenue remained flat at $361.5 million. The company recently named Mark E. Johnson as the new CFO along with other officer position changes.

Richard Pzena upped his NCS holdings 10% to 243,899 shares, while David Dreman sold out his holdings in the quarter that ended on 12/31/07.

The Chairman, President & CEO, Director Norman C. Chambers bought 8,000 shares on 4/2/08 at $25.32. Since December CEO Chambers has purchased a total of bought 22,400 shares at $21.89 to $25.32. Other insider purchases were made between $21.24 and $25.34 since December: EVPs Frances Powell Hawes and Kenneth W. Maddox each bought 5,000 shares; President Keith E. Fischer and VP Mark T. Golladay each bought a total of 3,000 shares; Directors William D. Breedlove and Gary L. Forbes each bought 2,000 shares; and lastly EVPs Eric James Brown and Todd R. Moore each bought 1,000 shares.

NCI Building Systems Inc. has a market cap of $491.75 million; its shares were traded at around $24.57 with a P/E ratio of 8.22 and P/S ratio of 0.30.

3Com Corp. (COMS): President and CEO Edgar Masri Bought 70,000 Shares

Networking provider 3Com Corporation (COMS) just won a $45.3 million lawsuit against Realtek Semiconductor for claims related to violating four of 3Com’s network interface patents. For the quarter that ended in February, the company magnified its loss over 60% to $7.8 million or $0.2 per share from $4.8 million or $0.01 from the previous year on higher revenue of $336.4 million.

Irving Kahn, Kenneth Fishe,r and Charles Brandes currently own 4,168,330 shares, 131,808 shares, and 9,832,231 shares of COMS, respectively. Jean-Marie Eveillard sold out his holdings in COMS prior to the end of 2007.

President and CEO Edgar Masri bought 70,000 shares of COMS stock on 4/1/08 at $2.35. Other insider buys topped off last month between $2.22 and $2.27: Director Eric Benhamou bought 500,000 shares; Directors Robert Yu Lang Mao and James R. Long each bought 150,000; EVP Neal D. Goldman bought 50,000 shares; Director Raj Reddy bought 30,000 shares; and last but not least, Director Gary T. Dicamillo bought 10,000 shares.

3Com Corp. has a market cap of $956.34 million; its shares were traded at around $2.35 with P/S ratio of 0.74.

ConAgra Foods Inc. (CAG): CEO, Director Gary M. Rodkin Bought 3,400 Shares; CFO Andre J. Hawaux bought 10,000 Shares

Packaged food company ConAgra Foods, Inc. (CAG) reinstated their 2008 forecast that earnings from continuing operations will be between $1.80 and $1.85. The company announced its dividend of $0.19 per common share, payable in June. ConAgra Foods over doubled their quarterly profits to $309.1 million or $0.63 per share, compared to a year ago at $193 million or $0.38 per share, on a 21% revenue increase $3.5 billion. The company plans to sell its ConAgra Trade Group for $2.1 billion in cash and debt to Ospraie Management.

Jean-Marie Eveillard owns 26,794 shares as of 12/31/07.

CEO, Director Gary M. Rodkin bought 3,400 shares of CAG stock on 4/2/08 at $23.75; the price of the stock has increased by 4% since. EVP & CFO Andre J. Hawaux and Robert Francis Sharpe Jr. each bought 10,000 shares last week around $24 per share.

ConAgra Foods Inc. has a market cap of $11.96 billion; its shares were traded at around $24.19 with a P/E ratio of 12.95 and P/S ratio of 0.89. The dividend yield of ConAgra Foods Inc. stocks is 3.1%.


Rating: 3.8/5 (5 votes)

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