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 4/1/09

Total Value Purchased

52-Week Return

Las Vegas Sands (NYSE: LVS  )

$3.74

$23,154,669

(95.2%)

T-3 Energy Services (Nasdaq: TTES  )

$11.81

$575,453

(72.7%)

Actuant (NYSE: ATU  )

$10.25

$287,191

(67.5%)

Chico's FAS (NYSE: CHS  )

$5.64

$98,222

(25%)

Jackson Hewitt (NYSE: JTX  )

$5.12

$39,000

(55%)

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

Betting on Vegas and Macau
When it comes to the desert paradise that is Las Vegas, Frank Sinatra sang it best: It's a make you town, or a break you town. Lately, Vegas has been in a break-you-town sort of mood. Shares of Las Vegas Sands and MGM Mirage (NYSE: MGM  ) have lost more than 95% of their value over the past year.

And they aren't the only ones suffering. Rhodes Design and Development, a well-known land developer in the region, filed for bankruptcy this week, the Associated Press reports. As many as 10,000 creditors could be affected by the filing.

So Vegas is hurting, and that's bad news for Sheldon Adelson, billionaire owner of the Las Vegas Sands gaming resort empire. His 50% stake in the company is worth a lot less today than it was a year ago.

Interestingly, Adelson doesn't seem to care. Rather than diversify or simply cut his losses, he's doubling down: Adelson has purchased 7.8 million shares of Las Vegas Sands since Friday at an average price of $2.95 apiece. CAPS All-Star campbem1 likes the move. Quoting from a pitch this Fool posted on Saturday:

At the current price of this stock the only question you have to ask yourself is will it go under or not? I am betting no ... This stock has been on a rollercoaster ride down for long enough. Yes, Las Vegas traffic is down but the opening of Bethlaham in May and Singapore end of year or early 2010 will be big. Sheldon Adelson has more skin in the game then a party at the Playboy Mansion. He is looking into buying back debt and possibly partnering up in Macau to finish construction on suspended projects.

Too bullish? Our 130,000-strong Motley Fool CAPS community might say so:

Metric

Las Vegas Sands

CAPS stars (5 max)

**

Total ratings

1,272

Percent Bulls

81.4%

Percent Bears

18.6%

Bullish pitches

195 out of 227

Data current as of April 2, 2009.

I'm more inclined to side with Adelson, who, like Steve Wynn of Wynn Resorts (Nasdaq: WYNN  ) , is a veteran of the business. And he's making bold moves to rekindle growth. Earlier today, the AP reported that Las Vegas Sands plans to resume construction on new casinos based in Macau -- China's version of Vegas -- later this year.

Shares of Las Vegas Sands are rallying on the news, as they should. Any catalyst is a good catalyst in a market like this one.

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:

Fool contributor Tim Beyers is slowly improving his CAPS score. Thankfully, he's doing better as an analyst for Rule Breakers. Actuant is a Motley Fool Hidden Gems recommendation. Jackson Hewitt is a former choice of Inside Value. Try either Foolish service free for 30 days.

Tim didn't own shares in any of the companies mentioned in this article 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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