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Weekly CEO Buy Highlights: Helix Energy Solutions Group Inc., GHL Acquisition Corp, Winmark Corp., Solutia, Inc., Heckmann Corporation

David Merkel

guruyt

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Last week’s top five stocks that were bought by their CEOs were Helix Energy Solutions Group Inc. (HLX), GHL ACQUISITION CORP (GHQ), Winmark Corp. (WINA), SOLUTIA, INC. (SOA), and HECKMANN CORPORATION (HEK).According to GuruFocus Insider Data, these are the largest CEO buys during the past week.

Helix Energy Solutions Group Inc. (HLX): PRESIDENT & CEO Owen E Kratz Bought 101,250 Shares

PRESIDENT & CEO of Helix Energy Solutions Group Inc. (HLX) Owen E Kratz bought 101,250 shares on 06/24/2009 at an average price of $10.84. Helix Energy Solutions Group Inc. is a leading marine contractor and operator of offshore oil and gas properties and production facilities. The company seeks to align the interests of the producer and the contractor by investing in mature offshore oil and gas properties hub production facilities and proven undeveloped reserve plays where Helix Energy Solutions Group adds value by deploying vessels from its diverse contracting fleet. This unique integration of marine contracting and oil and gas operations is designed to add stability to revenues and earnings in an industry as cyclical as energy. Helix Energy Solutions Group Inc. has a market cap of $1.07 billion; its shares were traded at around $10.84 with a P/E ratio of 6 and P/S ratio of 0.4. Helix Energy Solutions Group Inc. had an annual average earning growth of 28.6% over the past 10 years.

Helix recently reported its first quarter 2009 results. The company announced that its net income was about $53 million, or 50 cents per diluted share, compared to $73 million, or 77 cents per diluted share in the first quarter of 2008.

David Einhorn owns 6,527,645 shares as of 03/31/2009, an increase of 13.86% from the previous quarter. This position accounts for 1.41% of the $2.38 billion portfolio of Greenlight Capital Inc. Kenneth Fisher owns 829,750 shares as of 03/31/2009, which accounts for 0.02% of the $20.33 billion portfolio of Fisher Asset Management, LLC.

Many directors, like the company’s CEO, are also buying the company. Director Nancy K Quinn bought 2,000 shares of HLX stock on 03/18/2009 at the average price of $5.12; the price of the stock has increased by 111.72% since.

GHL ACQUISITION CORP (GHQ): CEO Scott L Bok Bought 40,000 Shares

CEO of GHL ACQUISITION CORP (GHQ) Scott L Bok bought 40,000 shares on 06/25/2009 at an average price of $9.79. GHL ACQUISITION CORP. is a newly formed blank check company organized for the purpose of effecting a merger capital stock exchange asset acquisition stock purchase reorganization or other similar business combination with one or more businesses or assets which they refer to as their initial business combination. The Company will not limit its efforts in identifying a prospective target business to a particular industry. Instead they will focus on industries and target businesses in the United States and Europe that may provide significant opportunity for growth. GHL ACQUISITION CORP has a market cap of $474.7 million; its shares were traded at around $9.79 .

Seth Klarman owns 199,462 shares as of 03/31/2009, a decrease of 91.14% of from the previous quarter. This position accounts for 0.19% of the $1.01 billion portfolio of The Baupost Group.

Buy: Senior Vice President Robert H Niehaus bought 700 shares of GHQ stock on 06/17/2009 at the average price of $9.75; the price of the stock has increased by 0.41% since.

Winmark Corp. (WINA): Chairman & CEO, 10% Owner John L Morgan Bought 14,000 Shares

Chairman & CEO, 10% Owner of Winmark Corp. (WINA) John L Morgan bought 14,000 shares during the past week at an average price of $16.33. Winmark Corporation is a franchise company that franchises seven retail concepts which buy sell trade and consign merchandise. Each concept operates in a different industry and provides the consumer with 'ultra-high value' retailing. The company began franchising the Play It Again Sports store concept and through a series of acquisitions has expanded its operations. Winmark Corp. has a market cap of $87.2 million; its shares were traded at around $16.33 with a P/E ratio of 20.1 and P/S ratio of 2.5.

Winmark recently reported its first quarter 2009 results. The company reported that its net income was 26 cents per diluted share, compared to 17 cents per diluted share in the first quarter of 2008. John L. Morgan, Chairman and Chief Executive Officer, stated, “The growth in our first quarter profits was primarily due to the improved performance of Winmark Capital, as well as a tighter control of selling, general and administrative expenses across all of our businesses. We are pleased with our performance, but remain cautious about the current economic environment.”

Many directors have recently increased their positions in the company.

SOLUTIA, INC. (SOA): President, CEO & Chairman Jeffry N Quinn Bought 20,000 Shares

President, CEO & Chairman of SOLUTIA, INC. (SOA) Jeffry N Quinn bought 20,000 shares on 06/24/2009 at an average price of $6.08. SOLUTIA is a market-leading performance materials and specialty chemicals company. The company focuses on providing solutions for a better life through a range of products including: Saflex(r) interlayer for laminated glass; CPFilms(r) aftermarket window films sold under the LLumar(r) brand and others; high-performance nylon polymers and fibers sold under brands such as Vydyne(r) and Wear-Dated(r); and technical specialties including the Flexsys(r) family of chemicals for the rubber industry Skydrol(r) aviation hydraulic fluid and Therminol(r) heat transfer fluid. Solutia's businesses are world leaders in each of their market segments. With its headquarters in St. Louis Missouri USA the company operates globally with approximately six thousand employees in more than sixty locations. SOLUTIA, INC. has a market cap of $573.3 million; its shares were traded at around $6.08 with a P/E ratio of 16.4 and P/S ratio of 0.2.

Solutia recently reported its first quarter 2009 results. The company announced that its net sales decreased to $339 million, from $517 million in the first quarter of 2008. Adjusted EBITDA also decreased to $56 million, from $95 million.

John Keeley owns 49,000 shares as of 03/31/2009, an increase of 16.67% from the previous quarter. This position accounts for less than 0.01% of the $4.75 billion portfolio of Keeley Fund Management. Charles Brandes owns 340,535 shares as of 03/31/2009, which accounts for less than 0.01% of the $16.16 billion portfolio of Brandes Investment.

Buy: Executive VP, CFO & Treasurer James M Sullivan bought 3,000 shares of SOA stock on 06/24/2009 at the average price of $5; the price of the stock has increased by 21.6% since.

HECKMANN CORPORATION (HEK): CHAIRMAN & CEO, 10% Owner Richard J Heckmann Bought 20,000 Shares

CHAIRMAN & CEO, 10% Owner of HECKMANN CORPORATION (HEK) Richard J Heckmann bought 20,000 shares on 06/24/2009 at an average price of $3.95. HECKMANN CORPORATION operates as a blank check development stage company. It intends to acquire or acquire control of one or more operating businesses through a merger stock exchange asset acquisition reorganization or similar business combination. HECKMANN CORPORATION has a market cap of $434.8 million; its shares were traded at around $3.95 with and P/S ratio of 41.4.

Heckman Corp. recently reported its first quarter 2009 results. The company reported a net loss of $1.69 per share. Net sales were $7.8 million. Mr. Richard J. Heckmann, Chairman and CEO of Heckmann Corporation, stated, “We made great progress in accelerating our strategic investment into diversified water business interests. Globally, the increasing need for delivery and purification of fresh water is driving growth in the water industry. Water infrastructure and resources are attractive long-term business opportunities and we are putting our strong balance sheet to work in the water business. So far, our efforts have culminated in a letter of intent to purchase substantially all of the assets of three companies that operate a saltwater disposal, treatment and water pipeline transportation business in Texas and Louisiana. This business has very strong growth characteristics and with the experienced and strong management team we are acquiring, we expect to open new avenues for expansion using our balance sheet strength. We have also signed an agreement to purchase a minority stake in Underground Solutions, Inc., a fast growing water infrastructure and pipeline company located in Poway, California. Investments such as these that enable us to diversify into productive and profitable water-related businesses will be critical to the long-term success of our Company.”

Ron Baron owns 3,500,000 shares as of 03/31/2009, which accounts for 0.18% of the $9.64 billion portfolio of Baron Funds.

Buy: Vice President/General Counsel Donald Ezzell bought 30,000 shares of HEK stock on 05/29/2009 at the average price of $4.14; the price of the stock has decreased by 4.59% since.

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

About the author:

guruyt
David J. Merkel, FSA, CFA, is the Chief Economist and Director of Research of Finacorp Securities. His specialty is looking at the interlinkages in the markets in order to understand individual markets better. He holds bachelor’s and master’s degrees from Johns Hopkins University. In his spare time, he takes care of his eight children with his wonderful wife Ruth.

Rating: 3.0/5 (8 votes)

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