11/21/2010

Week ending 11/10/10: Commentary on insider buying for micro caps with potential value

Interpret insider transactions; some thoughts


Click to view additional data on 20 companies with insider purchases for the week.

Officers/CEO purchases last week

AVTR: AVATAR HOLDINGS INC

Market cap = 208 million

Enterprise value = 121 million
Current price = $18.39

Chairman of the Board : Nash Joshua Lionel reported a purchase of 37,500 shares @ 17.89 for a total amount of $670,802, his current holdings after the purchase is 39,615 shares.

10% Owner: Einiger Roger purchased 5,000 shares @ $17.40


This idea is a contrarian bet on Florida real estate. Current book value is $37.74, cash per share is $14.11,

Insiders own 21%

The stock was 82.83 on May 14, 2007 and the Florida real estate market crashed but the reasonably strong balance sheet may help them survive until the real estate market turns around. Could future inflation help with real estate asset values?

BLD: BALDWIN TECHNOLOGY CO INC

BLD is a turnaround story that was comfortably trading above $4 from 1990 to 2007.

President & CEO: BECKER MARK T 9,220 shares purchased @ $1.19

10% Ownership: Griswold Paul J. 10,000 shares purchased @$1.18

Market cap = 20.2 million

Currnet price = $1.30
Book value = 3.33
Cash per share = 1.01


DWCH; Datawatch


MAHONEY DAVID DATAWATCH board member purchased 100,000 shares at @$2.75: 127,508 shares owned after this purchase

Market cap = 19 million
Enterprise value = 19 million
Current price = $3.24
“In 2003, Mr. Mahoney became CEO of Applix, Inc. and led a restructuring that enabled the company to attain a sustained growth rate in excess of 35 percent annually and resulted in a successful merger in 2007 with Cognos, Inc. During his tenure at Applix, the company achieved a twenty times increase in market valuation.”

Mr. Mahoney said, "I am very excited to be involved with Datawatch at this time in its history. Businesses more than ever require innovative, cost effective means to enable them to make good business decisions. The company offers a truly unique value proposition to its customers with its suite of easy-to-use, rapid time to implementation BI solutions. Datawatch has a solid infrastructure to support domestic and global opportunities in business intelligence, data transformation and analytics. I look forward to working with the Board of Directors to accelerate the company's growth and the adoption of its BI solutions."

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