Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Biglari Holdings Inc (BH), Clear Channel Outdoor Holdings Inc. (COO): Small-Cap Companies, Millionaire Insider Purchases (From 2015)

Looking into insider transactions is a crucial component of our investment strategy. Using our stock screener, I came across several important insider purchases that took place since the beginning of 2015. In this article, I would like to look into a couple of them, which involve the following small-cap companies: Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) and Biglari Holdings Inc (NYSE:BH).

I’ll start with the biggest company involved: Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), a $3.6 billion market cap provider of marketing services that offers diverse advertising opportunities through billboards, street furniture displays, transit displays and other out-of-home advertising displays.

Between October 15, 2014, and January 2, 2014, the company’s stock gained more than 72%, reaching a six-year high of $11.25. However, after peaking, the stock fell to $9.60 on January 5, and has not yet recuperated from the fall, as it now trades around $10.05.

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)

Amidst the low prices environment, on February 7, Iheartmedia, Inc., one of the major direct owners of the company, filed a Form 4 with the SEC disclosing the purchase of 2 million shares of Class A Common Stock. The insider declared having paid $10.20 per share, in a transaction that totaled $20.4 million. Iheartmedia now owns 8.55 million shares of Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), more than any institutional or mutual fund shareholder of record.

Also betting on the advertising company is Mario Gabelli’s GAMCO Investors, which roughly doubled its stake in early-October 2014, to 4.8 million shares. There is, however, one hedge fund with an even larger bet on Clear Channel Outdoor Holdings, Inc. (NYSE:CCO): Joshua Friedman And Mitchell Julis’ Canyon Capital Advisors. In its latest 13F filing (for the third quarter of 2014), the fund disclosed ownership of 6.51 million shares, worth more than $43 million at the time, and over $65 million at current stock prices.

Another company I would like to look into is Biglari Holdings Inc (NYSE:BH), an $845 million market cap holding company engaged in several business activities, including franchising and operating of restaurants and other diverse business activities, like media, property and casualty insurance. Its Restaurant Operations’ activities are conducted through two restaurant concepts, Steak n Shake and Western Sizzlin.

Since the beginning of 2015, through seven separate transactions, the company’s Chairman and CEO (also large shareholder), Sardar Biglari acquired 16,215 shares of Common Stock, for a total of approximately $6.5 million. Mr. Biglari paid an average weighted price of $405.70 per share, and now owns 336,636 shares, indirectly, through The Lion Fund, L.P., and another 31,019 shares, directly.

Mr. Biglari has been continuously increasing his exposure to Biglari Holdings Inc (NYSE:BH) for several years now, so, this round of purchases does not seem to respond to any particular news.

However, Mr. Biglari’s dominance is not uncontended. According to IBJ’s Greg Andrews, “Groveland Capital LLC, a Minneapolis-based investment firm, has filed notice with regulators that it will seek to replace Biglari and Biglari Holdings Inc.’s other five directors with its own slate of nominees at the company’s annual meeting in April.”

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.