Scribd Logo
Upload

Welcome to Scribd!

  • Insider Purchases December 18, 2009

    Uploaded by

    chainbridgeinvesting
    42 views2 pages
    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.chainbridgeinvesting.com. 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.chainbridgeinvesting.com/disclaimer/. 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,

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    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.chainbridgeinvesting.com. 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.chainbridgeinvesting.com/disclaimer/. 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,

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    42 views2 pages

    Insider Purchases December 18, 2009

    Uploaded by

    chainbridgeinvesting
    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.chainbridgeinvesting.com. 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.chainbridgeinvesting.com/disclaimer/. 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,

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    INSIDER PURCHASES

    WWW.CHAINBRIDGEINVESTING.COM

    CHAIN BRIDGE INVESTING


    DECEMBER 20, 2009

    LARGE INSIDER PURCHASES FROM DECEMBER 14 - 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 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 posi-
    tion. 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 fur-
    ther consideration from CB. If CB discovers any future investment potential in DPL, it will be posted on
    www.chainbridgeinvesting.com.

    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.chainbridgeinvesting.com/
    disclaimer/.

    EXHIBITS
    Exhibit A: Companies with Large Insider Purchases from December 14 - 18, 2009
    Oper. LT Debt/
    Date Insider Title Shares Trade Price Cost (000s) Company Ticker P/E P/FCFPS Margin Total Cap.
    12/17/2009 Walter P. Havenstein CEO 28,000 $ 19.34 $ 541.52 SAIC, Inc. SAI 15.6x 12.2x 8.1% 32.6%
    12/17/2009 Paul M. Barbas President & CEO 6,000 27.84 167.04 DPL Inc. DPL 12.6x 38.2x 27.7% 56.0%
    12/16/2009 Stephen L. Day CEO & President 76,937 2.14 164.65 Dover Saddlery, Inc. DOVR nm 4.4x -15.8% 65.3%
    12/16/2009 Federick J. Boyle SVP & CFO 10,500 28.48 299.04 DPL Inc. DPL 12.6x 38.2x 27.7% 56.0%
    12/15/2009 Leonard M. Tannenbaum CEO & President 20,000 10.19 203.80 Fifth Street Finance Corp. FSC 40.8x nm -51.8% 0.0%
    * CEO = Chief Executive Officer, P/E = Price/Earnings Ratio, P/FCFPS = Price/Free-Cash-Flow-Per-Share, Oper. Margin = Operating Margin; LT Debt/Total Cap. = Long-Term Debt/Total Capital, nm = not material.
    * All company financial data is downloaded from Yahoo and Stock Investor Pro, Chain Bridge Investing does not guarantee the accuracy of these figures and encourages readers to do their own research.

    INSIDER PURCHASES

    © 2009 Chain Bridge Investing


    PURCHASES
    INSIDER
    WWW.CHAINBRIDGEINVESTING.COM

    CHAIN BRIDGE INVESTING


    DECEMBER 20, 2009 PAGE 2

    EXHIBITS (CONTINUED)
    Exhibit B: Companies with Large Insider Purchases from December 14 -18, 2009

    # Company Name Ticker Industry Exchange Website Country


    1 SAIC, Inc. SAI Software & Programming New York http://www.saic.com United States
    2 DPL Inc. DPL Electric Utilities New York http://www.dplinc.com United States
    3 Dover Saddlery, Inc. DOVR Apparel/Accessories Nasdaq http://www.doversaddlery.com/ United States
    4 Fifth Street Finance Corp. FSC Misc. Financial Services New York http://www.fifthstreetfinance.com/ United States

    Exhibit C: Companies with Large Insider Purchases from December 14 -18, 2009
    % of 52- Mkt. Cap. Cash Short Gross Oper. RoA RoE
    # Company Name Price Wk. High (m) Debt (m) (m) EV (m) Ratio Margin Margin (LTM) (LTM)
    1 SAIC, Inc. $ 18.85 92.3% $ 7,463 $ 1,106 $ 991 $ 7,578 3.4x 13.8% 8.1% 9.3% 22.5%
    2 DPL Inc. 27.90 96.7% 3,342 1,492 63 4,770 2.9x 63.9% 27.7% 6.8% 24.8%
    3 Dover Saddlery, Inc. 2.05 68.8% 11 13 0 23 1.0x 37.0% -15.8% -52.5% -213.8%
    4 Fifth Street Finance Corp. 10.29 90.6% 390 - 113 277 5.8x 72.1% -51.8% -0.4% -0.4%

    Exhibit D: Companies with Large Insider Purchases from December 14 -18, 2009
    PE PE - 3 Yr. % S 1 Yr. S 3 Yr. EV/ LT Debt/ Net Debt/
    # Company Name P/E PE Yr+0 Yr+1 Avg. EPS PEG P/S P/B P/ FCFPS CapEx/S Gwth CAGR EBITDA Total Cap. EBITDA
    1 SAIC, Inc. 15.6x 14.8x 13.4x 18.6x 1.1 .72x 3.4x 12.2x 0.6% 12.8% 10.2% 7.91x 32.6% .12x
    2 DPL Inc. 12.6x 13.1x 11.2x 16.9x 1.9 2.11x 3.1x 38.2x 13.0% 5.7% 7.6% 8.23x 56.0% 2.47x
    3 Dover Saddlery, Inc. nm 25.6x 14.6x nm 0.9 .15x 1.7x 4.4x 0.8% -4.2% 7.5% 7.22x 65.3% 3.91x
    4 Fifth Street Finance Corp. 40.8x 9.1x 8.0x 60.5x 1.5 7.79x 1.0x nm 0.0% 50.0% nm nm 0.0% nm
    * Abbreviations: EV = Enterprise Value; M = Millions; LTM = Latest-12 Months; RoA = Return on Assets; RoE = Return on Equity; P/E = Price/Earnings; PEG = Price/Estimated Earnings
    Growth; P/S = Price/Sales; P/B = Price/Book; P/FCFPS = Price/Free Cash Flow per Share; CapEx = Capital Expenditures; S = Sales; CAGR = Compounded Annual Growth Rate; EBITDA =
    Earnings Before Interest, Taxes, Depreciation and Amortization; NM = Not Material.
    * All quantitative data has been downloaded from several databases, the viewer should check company filings to verify these numbers. This presentation is meant to provide the reader with some
    * Due to formatting some company names may be abbreviated.

    INSIDER PURCHASES

    © 2009 Chain Bridge Investing

    You might also like