One significant indication of value lies in the fact that the insiders including CEO, CFO and/or the 10% owners keeps buying in the stock with the huge amount. Here are the top 04 companies which have the insider buying of more than $1.5 million since the beginning of the year 2012.
Spectrum Brands Holding (SPB, Financial), with the strong and consistent buy of Harbinger Group since December until recently. In last week, it has bought in nearly 280,000 shares of SPB for the average trade price of $29 per share, making the combined total value of nearly $8 million. SPB is the consumer goods company, manufacturing and marketing alkaline, zinc carbon and hearing aid batteries, herbicides, insecticides and repellants and specialty pet supplies. With the current price of $29.5 per share, the total market capitalization is $1.54 billion. Currently, the market values SPB at 1.5x book value and 6.6x cash flow multiples. The firm is making the TTM loss so the P/E is not applicable now.
Incyte Corp (INCY, Financial). The Director as well as the 10% owner kept buying in its own stock with significant amount over time, since November 2011. Since the beginning of this year, Paul Brooke, its Director and Baker Brothers Life Science, 10% Owner bought in more than $10 million value of stock at the average price of $16 - $17 per share. INCY is the drug discovery and development company, focusing on developing small molecule drugs to treat serious unmet medical needs. The total company is worth $2.18 billion in the market, with $17.28 per share. It is trading at 14.2x P/S whereas it got negative earnings, negative book value, and negative operating cash flow, indicating the high speculative factors in this stock.
Cracker Barrel Old Country Store (CBRL, Financial). Sardar Biglari has bought into around $18 million of stock since the beginning of Jan 2012. CBRL is operating and developing Cracker Barrel Old Country Store concept, having more than 600 stores in 42 states. The main source is coming from the restaurants, of nearly 80% of its total revenue. The total market capitalization of CBRL is staying at $1.23 billion at the share price of $53.41, with the dividend yield of 1.9%. The market is valuing CBRL at 14x P/E, more than 4 times the book value and 8x its level of cash flow. This stock is in the portfolio of Joel Greenblatt and Richard Aster Jr, holding 0.06% and 3.54% of the total share outstanding respectively.
ModusLink Global Solutions (MLNK, Financial). From the beginning of this year, Handy & Harman, its 10% owner, has bought in more than $1.5 million of stock in at the average price of $5.3 - $5.5 per share. MLNK is the global supply chain business process management serving technology-based clients in markets such as computing, software, consumer electronics, storage and communications. Currently, the total market capitalization of MLNK is at nearly $250 million, trading at roughly its book value, and at only 8.5x price/cash flow. It is making a loss so the P/E is not valid at the moment. With $250 million in market cap, nearly the half of it is in cash, making the enterprise value of only $136 million. MLNK is now in the portfolio of Arnold Schneider, taking more than 5.5% of total share outstanding.
Disclosure: No position at the time of writing.
Spectrum Brands Holding (SPB, Financial), with the strong and consistent buy of Harbinger Group since December until recently. In last week, it has bought in nearly 280,000 shares of SPB for the average trade price of $29 per share, making the combined total value of nearly $8 million. SPB is the consumer goods company, manufacturing and marketing alkaline, zinc carbon and hearing aid batteries, herbicides, insecticides and repellants and specialty pet supplies. With the current price of $29.5 per share, the total market capitalization is $1.54 billion. Currently, the market values SPB at 1.5x book value and 6.6x cash flow multiples. The firm is making the TTM loss so the P/E is not applicable now.
Incyte Corp (INCY, Financial). The Director as well as the 10% owner kept buying in its own stock with significant amount over time, since November 2011. Since the beginning of this year, Paul Brooke, its Director and Baker Brothers Life Science, 10% Owner bought in more than $10 million value of stock at the average price of $16 - $17 per share. INCY is the drug discovery and development company, focusing on developing small molecule drugs to treat serious unmet medical needs. The total company is worth $2.18 billion in the market, with $17.28 per share. It is trading at 14.2x P/S whereas it got negative earnings, negative book value, and negative operating cash flow, indicating the high speculative factors in this stock.
Cracker Barrel Old Country Store (CBRL, Financial). Sardar Biglari has bought into around $18 million of stock since the beginning of Jan 2012. CBRL is operating and developing Cracker Barrel Old Country Store concept, having more than 600 stores in 42 states. The main source is coming from the restaurants, of nearly 80% of its total revenue. The total market capitalization of CBRL is staying at $1.23 billion at the share price of $53.41, with the dividend yield of 1.9%. The market is valuing CBRL at 14x P/E, more than 4 times the book value and 8x its level of cash flow. This stock is in the portfolio of Joel Greenblatt and Richard Aster Jr, holding 0.06% and 3.54% of the total share outstanding respectively.
ModusLink Global Solutions (MLNK, Financial). From the beginning of this year, Handy & Harman, its 10% owner, has bought in more than $1.5 million of stock in at the average price of $5.3 - $5.5 per share. MLNK is the global supply chain business process management serving technology-based clients in markets such as computing, software, consumer electronics, storage and communications. Currently, the total market capitalization of MLNK is at nearly $250 million, trading at roughly its book value, and at only 8.5x price/cash flow. It is making a loss so the P/E is not valid at the moment. With $250 million in market cap, nearly the half of it is in cash, making the enterprise value of only $136 million. MLNK is now in the portfolio of Arnold Schneider, taking more than 5.5% of total share outstanding.
Disclosure: No position at the time of writing.
