Insider Purchases December 18, 2009

Chain Bridge Investing (“CB”), on a weekly basis, will shift through the significant purchases — defined as an investment of $100,000 or more — that high level managers make in ... (More) Chain Bridge Investing (“CB”), on a weekly basis, will shift through the significant purchases — defined as an investment of $100,000 or more — that high level managers make in the companies they operate. While an insider’s purchase of his company is not a guarantee that the stock price will increase, a significant purchase can merit additional research. An insider who is putting a large sum of his money into the company he is operating, usually has confidence in the future financial results and its market position. Furthermore, the larger the insider’s ownership the more likely the insider will take corporate actions that are in favor of the shareholder, thus another reason for an investor seeking to allocate capital to prefer insider purchases.

Nevertheless, insiders are not always correct, or perhaps, the information/edge giving them the confidence to buy more shares is fleeting. At times, insiders can become blind to the inadequacies and weaknesses of their companies. As a result, CB uses this process as a means of gathering new potential investment ideas that could merit future research after an initial quick analysis is performed. The results of this week’s search can be found below. In this particular batch, the company DPL Inc. may warrant further consideration from CB. If CB discovers any future investment potential in DPL, it will be posted on www.chainbridgeinvesti....

As a final note, these listings are in no way to be construed as financial advice or investment recommendations. These listings are meant to provide ideas to readers for their own research and show parts of the investment research process of CB. Separately, the daily stock prices will not tie to the market capitalizations this week due to the timing of the report. All data is pulled from Stock Pro Investor and Yahoo! Finance. CB is not an investment advisor, please read the disclaimer at www.chainbridgeinvesti....

Stocks, Investing, Investments, Investment Ideas, Insider Purchases, Companies, DPL Inc., SAIC, Dover Saddlery, Fifth Street Finance, DPL, SAI, DOVR, FSC, Value Investing, Cheap stocks, Value, Value Investors, Large Insider Buying, Investment Screens, Significant, Large, markets, indexes, Stock Performance, (Less)

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