Who's Buying Now?

It's time once again to check out the week's most interesting insider purchases. After reading through numerous filings using insider tracking tool Form 4 Oracle, here are my top five today.

The week's buying

Company

Closing Price 6/3/08

Total Value Purchased

52-Week Change

Checkpoint Systems (NYSE: CKP  )

$26.22

$202,960

0%

Chesapeake Energy (NYSE: CHK  )

$55.30

$21,983,059

53.7%

General Electric (NYSE: GE  )

$30.46

$3,519,816

(16.9%)

Valeant Pharmaceuticals (NYSE: VRX  )

$15.82

$868,330

(1.4%)

Virtual Radiologic (Nasdaq: VRAD  )

$10.29

$76,655

NA*

Sources: Fool.com, Yahoo! Finance, Form 4 Oracle, SEC filings. NA = not applicable.
*Virtual Radiologic began trading on Dec. 3, 2007.

This general won't surrender
When Foolish colleague Rick Munarriz recently wrote that General Electric would never again be great, many disagreed. Certainly, the vast majority of Fools rating GE in our 105,000-strong Motley Fool CAPS community feel otherwise:

Metric

General Electric

CAPS stars (5 max)

****

Total ratings

8,054

Bullish ratings

7,481

Percent Bulls

92.9%

Bearish ratings

573             

Percent Bears

7.1%

Bullish pitches

1,317

Bearish pitches

106

Data current as of June 4, 2008.

I understand their reasoning. GE has:

  • An enduring and well-respected brand.
  • A sturdy balance sheet that sports $15.3 billion in cash and investments.
  • A history of producing tens of billions in annual free cash flow.

And perhaps best of all, it has a Foolish CEO who has millions to gain (or lose) in boldly positioning the business for growth. That's Jeff Immelt. Already the owner of more than 1.5 million shares of GE, Immelt is back on a buying spree, with a $3.5 million purchase last week.

But that's affordable for Immelt, whose holdings return $1.9 million annually in dividends. Yes, I said $1.9 million; that's what a 4% yield will do for you. Such dividends can set you for life.

And for Fools, the dividend makes all the difference with GE, as CAPS All-Star CarltonWhitfield explained in his April pitch:

Nearly a 4% yield here after a 7 cent earnings miss. ... International business booming. Still a significant backlog for all things green in the industrial space. Potential for asset write-ups on the financial side in the future. This may take a bit to move but we get paid to wait with the dividend.

Checking in on Chesapeake
I've spilled more than enough digital ink in this series about Chesapeake Energy CEO Aubrey McClendon, so I'll not rehash his buying prowess.

What I find interesting is that he's accelerating his buys as the stock price rises. See for yourself:

Time Period

Shares

Total Purchase

Avg. Price

May 2007

100,000

$3,420,890

$34.21

January 2008

536,500

$19,423,051

$36.20

March 2008

500,000

$23,103,107

$46.20

May 2008

1,000,000

$53,648,538

$53.65

Source: Form 4 Oracle.

Do the math with me. In May, McClendon increased his buying tenfold at an average price nearly 57% higher than last year. Either he's crazy or has good reason to like Chesapeake at these prices. History strongly favors the latter.

There's your update. See you back here next week, when we dig through more insider filings in search of the next home run stock.

Get the inside scoop on stocks of all sizes with related Foolishness:

Chesapeake Energy is an Inside Value pick. Try this market-beating service for 30 days, risk-free.

Fool contributor Tim Beyers, who is ranked 18,648 out of more than 105,000 participants in CAPS, also writes for Rule Breakers. He didn't own shares in any of the companies mentioned in this article at the time of publication. See Tim's portfolio and his latest blog commentary. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 658264, ~/Articles/ArticleHandler.aspx, 12/21/2014 5:48:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,804.80 26.65 0.15%
S&P 500 2,070.65 9.42 0.46%
NASD 4,765.38 16.98 0.36%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/19/2014 4:06 PM
CHK $19.86 Up +0.72 +3.76%
Chesapeake Energy CAPS Rating: ****
GE $25.62 Up +0.48 +1.91%
General Electric C… CAPS Rating: ****
CKP $13.49 Down -0.01 -0.07%
Checkpoint Systems… CAPS Rating: ***
VRX $146.06 Up +3.06 +2.14%
Valeant Pharmaceut… CAPS Rating: ***

Advertisement