Insiders are Buying Sun Bancorp Inc (SNBC) and Famous Daves of America Inc (DAVE)

Tracking insider purchases is a fundamental task for any good investor, as it can provide great investment ideas that go beyond usual options. Let’s, thus, take a look at two companies that saw their insiders buy their stock this week.

First off is Sun Bancorp, Inc. /NJ (NASDAQ:SNBC), a $335 million market cap holding for Sun National Bank. On April 28, Frank Clay Creasey Jr., a Board Director, started a position in the company with 300 shares, for which he paid $3.78 apiece. Another Director, Keith Stock, had initiated a position in the stock earlier this year: on Jan. 30, he purchased 1,000 shares of the company. In addition to these insiders, there are other bulls on Sun Bancorp. The largest hedge fund shareholder, Wilbur Ross (Invesco Private Capital), holds 21.28 million shares of the company. Kevin Michael Ulrich’s Anchorage Advisors, for its part, owns 8.46 million shares, and Matthew Lindenbaum’s Basswood Capital, 1.03 million shares. Other prominent investors holding long stakes in the company are Chuck Royce, Jim Simons, and Ken Griffin.

In order to comprehend this bullishness, one must look beyond the company’s weak fundamentals (negative margins and returns). Decent EPS growth prospects (8% in average, for the next five years) coupled with a cheap valuation, at 1.4 times the company’s book-values, make of this stock an attractive option.

Famous Dave's Of America

The second company on this list is Famous Dave’s of America, Inc. (NASDAQ:DAVE), a $179 million market cap restaurant owner and operator in the United States. Once again, despite weak fundamentals, one large shareholder (more than 10% owner), Pleasant Lake Partners Llc, seems to feel confident about its future. Between April 24 and April 25, the group acquired 36,451 shares of Common Stock, having paid $24.39 per share for 26,451 of them, and $24.98 per share, for the remaining 10,000 shares. Pleasant Lake had already made four acquisitions earlier this year, one in March and three in February, adding a total of 92,200 shares to its holding. Following these transactions, the group owns 876,861 shares of the company, worth roughly $22.14 million.

I would interpret these purchases as more of a bet on long-term growth. Analysts expect the company to deliver average annual EPS growth rates around 18% over the next five years. Moreover, several major hedge funds are also long in this stock.  The largest hedge fund investor is Jim Simons, who last reported having increased his stakes at the company by 6%, to 336,600 shares. Once more, Chuck Royce can be also found amongst Famous Dave’s’ bulls, same as Mario Gabelli.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Strong Insider Activity at Graftech International Ltd (GTI)

Three Banks Stocks That Jim Simons and Insiders Like

Insiders are Buying United Continental Holdings (UAL) Despite its Sky-High Valuation

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!