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Weekly CEO Buys Highlight: United Therapeutics Corp, UDR Inc, ValueVision Media Inc, SourceForge Inc, and The Phoenix Companies Inc

June 20, 2009 | About:
guruyt

guruyt

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Last week’s top five stocks that were bought by their CEOs were United Therapeutics Corp. (UTHR), UDR Inc. (UDR), ValueVision Media Inc. (VVTV), SourceForge Inc. (LNUX), and The Phoenix Companies Inc. (PNX). According to GuruFocus Insider Data, these are the largest CEO buys during the past week.

United Therapeutics Corp. (UTHR): CEO Martine A Rothblatt Bought 98,976 Shares

CEO of United Therapeutics Corp. (UTHR) Martine A Rothblatt bought 98,976 shares during the past week at an average price of $82.7. UTD THERAPEUTIC is a biotechnology company focused on combating cardiovascular inflammatory and infectious diseases with unique therapeutic products. These products include pharmaceuticals, arginine products, and telemedicine services. United Therapeutics Corp. has a market cap of $2.19 billion; its shares were traded at around $82.7 with a P/E ratio of 34.1 and P/S ratio of 7.8.

UTHR recently reported its first quarter 2009 results. The company announced that its net income was $13.2 million, or 50 cents per share. compared to $9.9 million, or 44 cents per share a year ago. "I am pleased that we started the year with an extremely strong first quarter," said Martine Rothblatt, Ph.D., United Therapeutics' Chairman and Chief Executive Officer. "Our core Remodulin franchise continues to grow and is now the preferred form of prostacyclin in North America."

Ken Heebner bought 105,000 shares in the quarter that ended on 03/31/2009, which is 0.13% of the $5.4 billion portfolio of CAPITAL GROWTH MANAGEMENT LP. Edward Owens owns 111,000 shares as of 03/31/2009, which accounts for 0.05% of the $15.69 billion portfolio of Vanguard Health Care Fund. Jean-Marie Eveillard sold out his holdings in the quarter that ended on 03/31/2009.

UTHR was recently traded in by its CFO. CFO John Maxim Ferrari sold 3,747 shares of UTHR stock on 06/04/2009 at the average price of $82.41; the price of the stock has increased by 0.35% since.

UDR Inc. (UDR): CEO Thomas W Toomey Bought 60,000 Shares

CEO of UDR Inc. (UDR) Thomas W Toomey bought 60,000 shares on 06/11/2009 at an average price of $10.78. United Dominion Realty Trust Inc. is a leading multi-family real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing buying selling developing and redeveloping attractive real estate properties in targeted U.S. markets. UDR has delivered long-term value to shareholders the best standard of service to residents and the highest quality experience for associates. UDR Inc. has a market cap of $1.62 billion; its shares were traded at around $10.78 with a P/E ratio of 7.5 and P/S ratio of 2.8. The dividend yield of UDR Inc. stocks is 11.3%.

UDR recently reported its first quarter results. The company reported that it repurchased $160 million worth of its shares. These purchases resulted in a net gain of $8.9 million, or 6 cents per diluted share. “ UDR is well positioned to weather the challenging environment with a strong and flexible balance sheet and an uncompromised focus on operations,” said Tom Toomey, President and CEO of UDR. “While we do not take this flexibility for granted, we do acknowledge the freedom it affords us to focus on operating our business as best we can in a turbulent economic environment.”

Chris Davis owns 2,280,234 shares as of 03/31/2009, an increase of 58.35% from the previous quarter. This position accounts for 0.05% of the $38.73 billion portfolio of Davis Selected Advisers. Ken Heebner sold out his holdings in the quarter that ended on 03/31/2009.

Buy: Director Thomas R Oliver bought 5,700 shares of UDR stock on 02/20/2009 at the average price of $9.03; the price of the stock has increased by 19.38% since.

ValueVision Media Inc. (VVTV): President & CEO Keith R Stewart Bought 155,400 Shares

President & CEO of ValueVision Media Inc. (VVTV) Keith R Stewart bought 155,400 shares on 06/16/2009 at an average price of $1.69. VALUEVISION INTERNATIONAL IN is a home-shopping retailer in the United States. Through its continuous merchandise-focused television programming it sells a wide variety of products directly to consumers. The products are presented by on-air hosts and orders are processed on-site by its telemarketing service representatives who use its customized computer processing system which provides real-time feedback to the on- air hosts. ValueVision Media Inc. has a market cap of $54.8 million; its shares were traded at around $1.69 with and P/S ratio of 0.1.

ValueVision Media recently reported its first quarter fiscal 2009 results. The company announced that its first quarter revenues were $134 million, down about 14% from results a year ago. This decline was caused mainly by a 26% decrease in average selling price, which was offset by a 10% decline in unit volume.

Buy: SVP & CFO Frank Elsenbast bought 15,000 shares of VVTV stock on 03/02/2009 at the average price of $0.33; the price of the stock has increased by 412.12% since.

SourceForge Inc. (LNUX): President and CEO Scott L Kauffman Bought 50,000 Shares

President and CEO of SourceForge Inc. (LNUX) Scott L Kauffman bought 50,000 shares on 06/12/2009 at an average price of $1.45. SourceForge's media and e-commerce web sites connect millions of influential technology professionals and enthusiasts each day. Combining user- developed content online marketplaces and e-commerce SourceForge is the global technology community's nexus for information exchange goods for geeks and open source software distribution and services. SourceForge's network of web sties serves more than 33 million unique visitors each month and includes: SourceForge.net, Slashdot, ThinkGeek, Linux.com, freshmeat.net, ITManagersJournal, and NewsForge. SourceForge Inc. has a market cap of $87.7 million; its shares were traded at around $1.45 with and P/S ratio of 1.6.

LNUX recently reported its total revenue $10.4 million, compared to $11.4 million from a year ago. The company reported a net loss of $7.4 million. "This is the first quarter that we are reporting under our new calendar year end," said Scott Kauffman, President & CEO, SourceForge, Inc.value="NASDAQ-NMS: LNUX" "While we are not satisfied with the results of the first quarter, I am confident about the merits of our new strategy and the value of the investments we are making in our business."

Buy: Director Andrew L Anker bought 70,000 shares of LNUX stock on 06/10/2009 at the average price of $1.25; the price of the stock has increased by 16% since. Many other insiders have recently increased their positions in the company.

The Phoenix Companies Inc. (PNX): President & CEO James D Wehr Bought 28,600 Shares

President & CEO of The Phoenix Companies Inc. (PNX) James D Wehr bought 28,600 shares on 06/12/2009 at an average price of $1.69. Phoenix Companies Inc. is leading provider of wealth management products and services offered through a variety of select advisors and financial services firms to serve the accumulation preservation and transfer needs of the affluent and high net worth market businesses and institutions. The company refers to its products and services together as its wealth management solutions. The company offers a broad range of life insurance variable annuity and investment management solutions through a variety of distributors. The Phoenix Companies Inc. has a market cap of $195.4 million; its shares were traded at around $1.69 with a P/E ratio of 3 and P/S ratio of 0.1.

PNX recently reported its first quarter fiscal 2009 results. The company announced that it had a loss of 65 cents per share in the first quarter. Operating loss was $1 per share. "As we look at the first quarter's challenging results, we nevertheless see a company that has the capitalization, liquidity and financial flexibility to continue weathering severe economic conditions, despite new challenges presented by rating downgrades and the resulting suspension of sales by major distribution partners. From an earnings perspective, improvements from the fourth quarter were partially obscured by the magnitude of the increase to the tax valuation allowance, which can, ultimately, reverse as we work our way out of the current conditions," said James D. Wehr, president and chief executive officer.

Daniel Loeb owns 7,524,000 shares as of 03/31/2009, which accounts for 1.7% of the $516 million portfolio of Third Point, LLC. Three gurus sold out the company.

PNX was recently bought by its CEO and Senior EVP. Senior EVP Philip K Polkinghorn bought 2,500 shares of PNX stock on 05/06/2009 at the average price of $1.89; the price of the stock has decreased by 10.58% since.

For the complete list of stocks that bought by their company CEOs, go to: CEO Buys.

  • 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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Rating: 2.5/5 (10 votes)

Comments

singh
Singh - 5 years ago
nice analysis
Bad-Biz-Finder
Bad-Biz-Finder - 5 years ago
UDR CEO Buys 60K Shares to Manipulate Stock Price & Volume

June 13, 2009 — badbizfinder | http://badbizfinder.wordpress.com

UDR CEO, Toomey, Buys 60,000 Shares of NYSE:UDR on June 11 to Manipulate the Declining Stock Price and Increase Trading Volume for Week’s Closing Bell

The Reasons:

1. Trading Volume has Declined By 47% Over the Last 10 Days

2. Cumulative Stock Price Has Lost $2.13 Over the Last 10 days

3. Accounting & Governance Rate is Reported by Forbes as an Aggressive Risk

3. Investor Community Confidence is Waning

4. Current Shareholders Are Getting Nervous

5. Key UDR Executives Are Dumping Their Stock

6. A California Tenant Class-Action Lawsuit Against UDR is Heating Up Fast

7. UDR’s Competition is Crushing Them Due to UDR’s Neglect of its Properties and Tenants as well as a Sharp Decrease in Rental Prices and a Sharp Increase of New Renters into the Marketplace Due to an Overwhelming Foreclosure Rate in California

There is mounting fear and apprehension over the fate of the Highlands Ranch, Colorado-based REIT after last week’s announcement of the formation of the Class-Action Lawsuit Against UDR on behalf of California tenants.

This high-profile advocacy action has served to underscore UDR’s serious regulatory deficiencies and tenant oppression coupled with its competition’s ferocious bite in the same region. Shareholders and speculators are scrambling for safety.

See: [badbizfinder.wordpress.com]

As California represents over 30% of the REIT’s annual revenues, Toomey attempted to manipulate public perception of the company’s imminent “crash and burn” by acquiring 60,000 shares of NYSE:UDR Thursday at $10.99.

See “Crash & Burn”: [finviz.com]

See “Toomey Manipulation”:

http://www.sec.gov/Archives/edgar/data/74…..

~ ~ ~ ~ ~

Other Senior UDR Executives Are Dumping Their Stock, Not Buying

Key UDR REIT development executives aren’t buying up any shares. To the contrary, they see the writing on the wall and have been systemically eliminating their personal risk:

Since February 24, 2009, UDR’s Senior Executive Vice President, W. Mark Wallis has dumped 60,000 shares in three transactions:

http://www.sec.gov/Archives/edgar/data/74208/0000…..

http://www.sec.gov/Archives/edgar/data/74208/0001…..

http://www.sec.gov/Archives/edgar/data/74208/0001…..

And since February 20, 2009, Richard Giannotti, the company’s EVP of Redevelopment hit the panic button and dumped 125,000 shares in five transactions:

http://www.sec.gov/Archives/edgar/data/74208/0001…..

http://www.sec.gov/Archives/edgar/data/74208/0001…..

http://www.sec.gov/Archives/edgar/data/74208/0001…..

http://www.sec.gov/Archives/edgar/data/74208/0001…..

http://www.sec.gov/Archives/edgar/data/74208/0001…..

~ ~ ~ ~ ~

The Public Utility Holding Company Act

Toomey purchased the shares as an individual Director/Officer hiking his total securities beneficially owned to 736,452. Toomey filed a Form 4 pursuant to among others, Section 17(a) of the Public Utility Holding Company Act (PUHCA).

The three top objectives of the PUHCA are:

1. To regulate electric utilities by state or to mandate divestitures so that each became its own system serving a smaller geographic area (like cities that UDR operates in).

2. To require SEC approval be obtained by a holding company prior to engaging in a non-utility business and that such business is kept away from the regulated business.

3. To authorize the SEC to flatten the corporate structure of utilities to remove unnecessary corporate layers. Individual operating utility companies could centralize certain business operations into central service operation but ALL service operations would be subject to SEC and Federal Energy Regulatory Commission regulation.

So, when a state utility commission regulates a utility located in a particular state, the rate payers of that state would pay only the share of common service operation expenses allocated to it under SEC-approved formulas. This would prevent a holding company from double-recovery of its expenses when it operates in more than one state.

~ ~ ~ ~ ~

UDR’s Ratio Utility Billing System (RUBS)

One of the most egregious causes of action brought by the California Class-Action is the that UDR is earning a profit on the Ratio Utility Billing System (RUBS) policy it maintains at its residential properties in direct violation of the California Public Utilities Commission.

UDR passes on to its tenants the owner’s cost of utilities for all common areas, vacant units during repair and cleaning, property lighting, leasing offices, water for landscaping, swimming pools, whirlpools, gyms, onsite tennis courts, volleyball courts, gyms, as well as its public laundry facilities through its Ratio Utility Billing System (RUBS).

However, UDR has no logistical need to use a RUBS policy as there are a minimum of 14 residential energy and water meters throughout each property rendering such pro-rated unnecessary from a practical standpoint.

Our investigations have found that practicality is far from UDR’s motivation which must come as severe shock to those who naively believed UDR’s motto: “Opening doors to the future…” Here, we believe they are referring to the future retirement accounts of the key executives and institutional shareholders.

~ ~ ~ ~ ~

The “RUBS” Formula

In the UDR California Residential Lease Agreement UDR sets forth the formula by which its tenants must rely to calculate their “fair share.” At lease signing tenants must agree that this formula is “fair and equitable.” This is fraud in its purest form as the variables in the formula (unbeknownst to tenants at signing) are all outside the knowledge, access and control of the tenant.

Here’s the UDR formula (do you think you could calculate YOUR fair share wothout input from UDR?):

Total monthly utility cost for the community (minus an allowance for common area use if applicable [which is not applicable in the present case]) divided by the number of persons residing at the community times the number of persons residing in the Premises using the applicable ratio multiplier [1 person = 1; 2 persons = 1.6; 3 persons = 2.2; 4 persons = 2.6; 5 persons = 3; each additional person, add..4 to the multiplier.]

A current tenant and certified class action member reported to Bad Biz Finder that she attempted to use the formula by requesting the information required to calculate her “fair share” but the information request was denied:

“I asked on two separate occasions while in the apartment office for a copy of the community bill and the first time, a young guy kind of laughed and said that he would have to talk to our apartment manager about it. A few months later I asked the apartment manager and she said that they did not have anything like that to give to tenants. She was nice about it…I’m not sure if she was lying or if she really didn’t have that information. I never asked for it again and I wondered if what they were doing could be against the law.”

To make matters worse, UDR earns a double revenue stream by not only charging its tenants to pay for the water and energy supplied to the laundry rooms but also charges them to use the coin-operated machines.

~ ~ ~ ~ ~

So, to wrap up, we estimate Toomey will hold his newly-acquired 60,000 shares for about 30 days and then dump them and then dump the rest in keeping with Giannotti and Walls. We find it interesting that UDR doesn’t issue a press release when key executives sell shares, only when they purchase them to con the investment community.

So, we’ll be your official UDR Stock Dumping Watchdog. Expect to hear from us on a regular basis in the next couple of months.

And, one last note: Perception is reality. UDR is in a free fall and it's not likely to recover. Anyone that's stating otherwise is yanking your chain or being told to say so to help UDR. Those puppets are just going to end up with egg on their faces.

You can't be a slumlord for as long as UDR has been one and not face someone like Erin Baldwin (lead advocate at Bad Biz Finder) at some point that will tell the truth. Here is her story with UDR:

http://badbizfinder.wordpress.com/2009/06/22/udr-nyseudr-throws-tenant-out-on-the-street-in-retaliation-for-initiating-a-class-action-lawsuit-against-udr-on-behalf-of-ca-tenants/

Bad Biz Finder


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