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8/27/2012

Value Ideas: Insider Buys to Float Ratio


My search for potential ideas started by using the net number of shares purchased and comparing to total shares in the float. Part of me was looking to measure insider buying conviction. Then I made sure value potential was real by reviewing financial performance and the markets over or under reaction.
 



ELSE, ICCC, DLIA.SXCL presented interesting value attributes coupled with notable insider conviction worth a closer look.
ELSE: Electro-Sensors manufactures and distributes industrial production monitoring and process control systems.
Current Dividend Yield is 4.00%
Market Cap = 13.56M
 EV = 4.94M
 EV / EBITDA = 6.06M
 EV/Revenue = .76
Percentage held by insider = 60.39%
17,713 shares were purchased by insider during 2012 for an average price of 3.90
1.32 million shares in float for a value based on closing price of 4.00 of 5.28M
Book value is 3.03 per share with 2.54 per share in cash and 16.30% YOY increase in revenue
Insider Activity:
 

 
 
 
 
 
 
 
 
 
 
 
 



 
ImmuCell Corp. (ICCC)
Financially sound tiny but profitable 16 million nano cap sitting on valuable animal health biotechnology. This technology is used to protect calves health without the use of antibiotics. The company sells its products to distributors and bovine veterinarians, as well as directly to dairy producers.
Based in Portland, Main and founded  in 1982, "ImmuCell's purpose is to create scientifically-proven and practical products that result in a measurable economic impact on animal health and productivity in the dairy and beef industries."
ICCC has a margin of safety and could be considered a  heads i win real big tails i dont lose too much.Why .. 3.06 in tanglble book value, 1.66 per share in cash.2.1 million in real estate recorded on the books in 1992 but this is the margin of safety part. Upside is in the FDA approval for thier MASTiK product to protect health of calves without the use of antibiotics coupled with exsiting profitable bussiness.




















dELiA*s, Inc. (DLIA) and Steel Excel Inc. (SXCL) are worth taking a look at and at least considering keeping on a watch list. 


"Sometimes your personality is coded in such a way that it is a part of you, acting that way is a necessity, you are compelled to be an entrepreneur or a musician or a stay-at-home dad, because you are simply not built like everyone else."
Taken from Preeti Gupta's unexpected purposeful and enjoyable book: check it out on Amazon or visit her website.