Insiders are Crazy About These 5 Stocks

Page 1 of 2

Studies show that stocks bought by insiders tend to beat the market, though the effect is generally very small. The best results come from consensus insider purchases. According to academic studies stocks bought by multiple insiders outperformed the market by 7 percentage points per year on the average over a 25 year period (learn more about studies on consensus insider purchases). We think that these results are the way they are because insiders have to be particularly confident in a stock’s prospects in order to ignore the benefits of diversification and invest more of their own money in the company. As such we think insider purchases can be treated like other stock screens: take a quick look at the company and decide whether or not it is worthy of further research. Here are five stocks that at least three insiders have bought in the last 30 days:

SOROS FUND MANAGEMENT

Several insiders bought shares in Denbury Resources Inc. (NYSE:DNR), a $7.2 billion oil and gas exploration and production company. In the third quarter of 2012, Denbury’s revenue was up slightly versus a year earlier but earnings were down, likely reflecting the combination of lower natural gas prices and increased production. The stock trades at 16 times earnings, whether we use trailing results or analyst forecasts for 2013. Billionaire George Soros initiated a position in Denbury during the third quarter of 2012 (see Soros’s stock picks) and billionaire Leon Cooperman’s Omega Advisors also increased its holdings of the stock (check out more stocks Cooperman was buying).

Since the beginning of 2013 four different insiders have been buying Abraxas Petroleum Corp. (NASDAQ:AXAS), another oil and gas exploration and production company. Abraxas has a market capitalization of only about $200 million, but on average about 800,000 shares are traded per day and the current market price is about $2.10 making for over $1.5 million in daily dollar volume. When the fourth quarter comes in Abraxas is expected to be barely profitable for 2012, but the sell-side expects the company to do much better this year and so the current-year P/E is 18. 12% of the outstanding shares are held short.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!