Insider Trading: Significant Insider Buys from 12/14-18/2009

Chain Bridge Investing (“CB”), on a weekly basis, shifts through significant insider buying activities — defined as an investment of $100,000 or more. While an insider’s purchase of his company is not a guarantee that the stock price will increase, a significant insider purchase can merit additional research. An insider who is putting a large sum of his money into the company he is operating, usually has confidence in the future financial results and its market position. Furthermore, the more ownership a manager has, the more likely he will act in the interests of the shareholders.

Nevertheless, insiders are not always correct, or perhaps, the information/edge giving them the confidence to buy more shares is fleeting. At times, insiders can become blind to the inadequacies and weaknesses of their companies. As a result, CB uses this process as a means of gathering new potential investment ideas that could merit future research after an initial quick analysis is performed. The results of this week’s search can be found below.

In this particular batch, the company DPL Inc. may warrant further consideration from CB. When both the CEO and CFO make purchases in their company, CB feels obligated to give those insider purchases some credit. CB usually applies a larger weight to insider buying on the behalf of the CFO since he is likely to have a better understanding of the financial results and operations than the CEO.  Furthermore, the CFO, in general, does not receive as much compensation as the CEO and may be investing a larger percentage of his wealth into the company. If CB discovers any future investment potential in DPL, CB will update.

As a final note, these listings are in no way to be construed as financial advice or investment recommendations. These listings are meant to provide ideas to readers for their own research and show parts of the investment research process of CB. All data is pulled from Stock Pro Investor and Yahoo! Finance. CB is not an investment advisor, please read the disclaimer at www.chainbridgeinvesting.com/disclaimer/.

Insider Stock Purchases 12/14-18/09 –

Tagged with Dover Saddlery, DOVR, DPL, Federick Boyle, Fifth Street Finance, FSC, Insider Purchases, Leonard Tannenbaum, Paul Barbas, SAI, SAIC, Stephen Day, Walter Havernstein