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


Closing Price 12/18/07

Total Value Purchased

52-Week Change

Allied Capital (NYSE:ALD)




Chico's FAS (NYSE:CHS)




Harris & Harris (NASDAQ:TINY)




Isle of Capri Casinos (NASDAQ:ISLE)




Visteon (NYSE:VC)




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

Tiny opportunities
Although I'm known as a growth investor who's often buying into stocks that are reaching for orbit, I can't help but be intrigued by how well insiders do when they buy after a massive sell-off.

Heating and air conditioning specialist Goodman Global was like that in July 2006: The stock suffered a 20% haircut after reporting disappointing second-quarter earnings. Insiders, sensing an opportunity, bought on the weakness. Twelve insiders, that is.

The stock has nearly doubled since, thanks in part to a $1.8 billion buyout offer.

Will nanotech venture capitalist Harris & Harris, a Rule Breakers recommendation, enjoy similar gains after its recent sell-off? Our 78,000-strong Motley Fool CAPS community seems to think so:


Harris & Harris

CAPS stars (5 max)


Total ratings


Bullish ratings


Bull ratio


Bearish ratings


Bear ratio


Bullish pitches


Bearish pitches


Data current as of Dec. 19, 2007.

I've good news for these Fools: Harris & Harris today reminds me of Goodman in 2006. Harris & Harris, you see, has 10 insiders buying, all directors. One significant holdout? CEO Charles Harris who, with his wife, already owns 4.6% of the company, according to Capital IQ.

Some CAPS investors remain skeptical, however. Here's how Irishmac put it in May:

There must be tens of thousands of scientists worldwide, working in colleges, research institutes and companies -- especially in big companies. Where will the breakthroughs come from? Caltech? Samsung? IBM (NYSE: IBM  ) ? Toshiba? Dow Chemical (NYSE: DOW  ) ? ... The odds for TINY must be just that ... tiny. In the meantime, any investor can be sure that every three months or so you'll get a new financial statement showing no revenues, no income, less cash.

Fair points, all. Trouble is, you could say pretty much the same thing about any venture fund. Most VCs I know say that limited partners shouldn't expect much in the way of meaningful returns for seven years, on average.

Makes sense to me. When you think about it, VC funds are best suited for those investors who have 10 years or more to wait for market-busting returns. Look at Google. Founded in 1998, it took six years for the search king to go public and reward its early backers.

I'm with the insiders. I've added Harris & Harris to my CAPS portfolio today.

What's under the hood at Visteon?
Even crazier, I'm seriously looking into ailing auto parts maker Visteon. Here's how crazy that could be:


Trailing 12 Months




Return on capital





Free cash flow (mil)





Sources: Yahoo! Finance, Capital IQ, a division of Standard & Poor's.


Insiders are apparently counting on meaningful progress toward a turnaround. Four of them, including CEO Michael Johnston, have bought shares since Monday. More than a half-million dollars in additional personal wealth is now on the line. Impressive, no? It is to me, and I've added the stock to my CAPS watch list as a result.

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:

Read/Post Comments (0) | Recommend This Article (13)

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.

Compare Brokers

Fool Disclosure

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: 557134, ~/Articles/ArticleHandler.aspx, 5/30/2016 12:55:11 PM

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 2 days ago Sponsored by:
DOW 17,873.22 44.93 0.00%
S&P 500 2,099.06 8.96 0.00%
NASD 4,933.51 31.74 0.00%

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

5/27/2016 11:14 AM
ALD $43.95 Down -0.02 +0.00%
WisdomTree Asia Lo… CAPS Rating: No stars
CHS $10.78 Up +0.21 +0.00%
Chico's FAS, Inc. CAPS Rating: ***
DOW $52.18 Up +0.19 +0.00%
The Dow Chemical C… CAPS Rating: *****
IBM $152.84 Up +0.40 +0.00%
International Busi… CAPS Rating: ****
ISLE $16.20 Up +0.84 +0.00%
Isle of Capri Casi… CAPS Rating: **
TINY $1.72 Down +0.00 +0.00%
Harris & Harris CAPS Rating: **
VC $74.17 Up +0.63 +0.00%
Visteon Corp CAPS Rating: ***