Who's Buying Now?

It's a new week, which means it's time to check the 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 8/27/08

Total Value Purchased

52-Week Change

Hasbro (NYSE: HAS  )

$36.17

$143,000

29.7%

MGIC Investment

$7.03

$419,893

(79.7%)

Brightpoint (Nasdaq: CELL  )

$8.70

$247,394

(23.5%)

Tween Brands

$10.78

$48,550

(63.1%)

Flowers Foods (NYSE: FLO  )

$25.49

$99,874

28.4%

Sources: Fool.com, Yahoo! Finance, Form 4 Oracle, SEC filings.

More toying around with Hasbro
Neither analysts nor our 115,000-strong CAPS community have made up their minds about toymaker Hasbro:

Metric

Hasbro

CAPS stars (5 max)

***

Total ratings

502

Bullish ratings

459

Percent Bulls

91.4%

Bearish ratings

43

Percent Bears

9%

Bullish pitches

86

Bearish pitches

9

Data current as of Aug. 27, 2008.

Who has? Foolish colleague Rick Munarriz. "Analysts have a history of underestimating Hasbro," he wrote recently. "They also, apparently, have a knack for underestimating that parents tend to spend more to make their kids happy than they do themselves during tough economic times."

As a father of three, I can attest to the truth in Rick's assertion. But I think there's also something bigger at work here. Even as the economy and spending have suffered, Hasbro's management has produced higher returns on equity and invested capital over the past year. Neither Mattel (NYSE: MAT  ) nor RC2 (Nasdaq: RCRC  ) can make that claim.

A great brand will do that for you. As CAPS investor borisvolodnikov wrote earlier this month:

Many of the games and toys Hasbro manufactures and markets are far beyond recognizable brands, they're iconic. Games like Battleship, Candy Land, Risk, and Twister? I think kids will continue to play these games simply because their parents did. Their parents can 'get' all of these because they had them when they were kids. Hasbro will continue to develop new and exciting toys, but I think these old classics will always form a core for their business. A good long play.

Management appears to agree. Chief Marketing Officer John Frascotti added 4,000 shares to his stake last week. That equals the buying he did in February, when Hasbro was trading for less than $27 a share.

Hello, Mr. Brightpoint-side
Mobile device distributor Brightpoint hasn't had an easy life lately. In June, for example, the company said it would reorganize its European division and cut 275 to 325 jobs. But is this stock really no longer worth owning?

Not according to Standard & Poor's. In July, analysts there named 13 U.S. tech companies they believed were poised to grow. Motley Fool Stock Advisor selections Netgear (Nasdaq: NTGR  ) and VASCO Data Security (Nasdaq: VDSI  ) both made the list, as did Brightpoint.

I find it interesting that, like VASCO chief executive Ken Hunt, insiders at Brightpoint are buying. CEO Robert Laikin and Chief Financial Officer Anthony Boor have collectively spent nearly a quarter-million dollars on shares of Brightpoint over the past week. That's enough to make my CAPS watch list.

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.

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Hasbro, NETGEAR, and VASCO Data are Stock Advisor selections. RC2 is a Hidden Gems recommendation.

Fool contributor Tim Beyers, ranked 18,116 out of more than 115,000 participants in CAPS, also writes for Rule Breakers. Get access to all of his writings here. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. The Motley Fool has a disclosure policy.


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