Stocks the Rich Executives Are Buying

Put five Fools in a room, ask them how they invest, and you'll likely get five different answers. Some like growth, others value, or small caps, or dividends, or, well, you get the picture.

Yet while our styles differ, we all want excellent, engaged managers running the companies we own. We like it even more when these managers are also owners -- investors like you and me who, in trying times like these, are willing to buy as others sell. That's why I write this column weekly.

The week's buying
So which rich executives are buying now? Have a look, courtesy of our friends at Form 4 Oracle:

Company

Closing Price 5/22/09

Total Value Purchased

52-Week Change

Hasbro (NYSE: HAS  )

$22.74

$228,700

(31.9%)

Live Nation

$5.36

$155,269

(63.5%)

Pulte Homes (NYSE: PHM  )

$9.36

$296,432

(25%)

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

Now's the time to toy around with this stock
Summer movie season is here, and it's brought some first-rate blockbusters:

  • Viacom's (NYSE: VIA  ) cinematic reintroduction of the classic TV show Star Trek has thus far taken in $184.4 million at the box office.
  • X-Men Origins: Wolverine, produced cooperatively by Marvel Entertainment (NYSE: MVL  ) and News Corp.'s (NYSE: NWS  ) 20th Century Fox, has clawed its way to a $163.2 million take.

Hasbro will join in the fray on June 24 with Transformers: Revenge of the Fallen, and then follow that on Aug. 7 with G.I. Joe: The Rise of Cobra. Hopes run especially high for the sequel to 2007's Transformers, a blockbuster that earned more than $312 million domestically and $700 million worldwide.

A good showing could position the toymaker to successfully ape Marvel as a first-class licensing machine, and separate itself from cinema-challenged peers such as Mattel (NYSE: MAT  ) and RC2 (Nasdaq: RCRC  ) . But movies are just one part of the process. Hasbro also recently closed a $425 million debt offering that will, among other things, fund a new television and Internet joint venture with Discovery Communications.

Management, meanwhile, is shuffling personnel to accommodate the changes. The company last week promoted Deb Thomas, an 11-year Hasbro veteran, to Chief Financial Officer. She replaced David Hargreaves, who will continue as Chief Operating Officer.

Our 130,000-strong Motley Fool CAPS community is mostly encouraged by these transitions:

Metric

Hasbro

CAPS stars (5 max)

****

Total ratings

594

Percent Bulls

92.4%

Percent Bears

7.6%

Bullish pitches

97 out of 106

Data current as of May 23, 2009.

"Historically well-ran company, so when they say 'we believe the worst has come' on the earnings call, you've got to listen," wrote CAPS player www1023ecom last month.The CAPS All-Star continued:

It also doesn't hurt that they have A TON of big licenses coming up (movie-wise): GI Joe, Transformers, X-Men (not to mention the Marvel License in general...) Oh, and having the Star Wars license is money no matter what. It's an iconic brand. Plus, families have rediscovered 'game night' during the past year and we have to expect that to continue into the fall... They met the street, have a decent debt sheet, I think it's a value around $27-$29 and let it ride to $35-$38 by June/July ...

Hargreaves would appear to agree. On May 15, he purchased 10,000 shares on the open market, at $22.87 apiece. I suspect he'll be richly rewarded.

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:

Hasbro and Marvel Entertainment are Motley Fool Stock Advisor selections. RC2 is a Motley Fool Hidden Gems pick. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is slowly improving his CAPS score. Thankfully, he's doing better as an analyst for Motley Fool Rule Breakers. Tim had stock and options positions in Marvel at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy knew a rich executive once. She never bought anything.


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