During the past week, four companies have reported insider
buys as their prices have dropped to or neared a 52-week low.
Looking at insider buys at 52-week lows can be interesting
because (to paraphrase Peter Lynch) an insider will only put
their personal money into the company if they think the stock
price will go up.
The following four companies reported insider buys at their
Ares Commercial Real Estate (
As Ares Commercial Real Estate's share price has hit a 52-week
seven different insiders
have made buys of the company's shares. The following seven buys
all occurred on June 20.
Three directors bought a total 188,000 shares at $13.50 per
Co-CEO Todd Schuster added 30,000 shares to his stake at $13.50
per share. The transaction cost him a total of $405,000. Schuster
currently holds 37,027 shares of Ares. Since his buy, the price
per share has dropped an additional 5.48%.
President and COO Bruce Cohen bought 25,000 shares at $13.50
each. This cost Cohen a total of $337,500. He currently holds at
least 40,000 shares of Ares.
VP and General Counsel Michael Weiner bought 11,111 shares at
$13.50 each. This cost the VP a total of $149.998.50. This was
Weiner's first buy of company stock.
Co-CEO John Bartling bought 22,222 shares at an average price of
$13.50 per share. This cost the CEO a total of $299,997. Bartling
now owns at least 35,722 shares of company stock.
Ares Commercial Real Estate is a specialty finance company
organized as a REIT. The company provides solutions to meet the
distinct and underserved financing needs of middle-market
commercial real estate, which ACRE generally defines as assets
with values of $15-100 million.
On June 21 the company made a public offering of 18 million
shares of its common stock at a public offering price of $13.50
per share. The transaction closes at the close of business on
Ares share prices took a tumble as they released their first
quarter financials which reported:
� Net loss attributable to common stockholders was
$0.3 million, or $0.04 per diluted share.
� Core earnings (loss) were $0.9 million or $0.09 per
basic and diluted common share.
� The company also announced the proposed acquisition
of Alliant Capital LLC.
on the company reports that the dividend yield is close to a
1-year high, the price has dropped beneath its previous 2-year
low of $13.08 and the P/S ratio of Ares is at a 1-year low.
, First Pacific Advisors and Pioneer Investments maintain
holdings in Ares. Click here to see their holding histories.
Saratoga Resources (
Two insiders made buys into Saratoga Resources last week. The two
corporate executives made their buys on June 14.
President Andy Clifford bought 2,105 shares of Saratoga stock at
an average price of $1.89 costing him a total of $3,978.45.
Clifford now holds on to over 2.6 million shares of Saratoga.
Since his buy, the price per share has decreased approximately
Chairman, CEO and 10% Owner Thomas Cooke bought 2,000 shares at
an average price of $1.98 per share. This cost the CEO a total of
$3,960. Cooke now holds on to over 6.1 million shares of
It should also be noted that two directors significantly reduced
their positions. On June 18, Director John Rhea sold out of the
company by selling his remaining 14,909 shares at $1.93 per
share. This brought in $28,774 for the director. On June 20,
Director Kevin Smith sold 8,000 shares at $1.73, leaving him with
just under 200,000 shares.
Saratoga Resources is an independent exploration and production
company with offices in Houston, Texas and Covington, Louisiana.
Saratoga is an oil and gas development, exploration and
production company. Saratoga Resources is an independent oil and
natural gas company engaged in the production, development,
acquisition and exploitation of natural gas and crude oil
The company's first quarter financials report:
� Oil and gas revenues of $19.26 million compared to
$19.34 million in the same quarter 2012.
� Cash flow of $5.1 million, or $0.16 per share,
compared to $5.8 million, or $0.21 per share, in the first
� Net loss of $1.1 million, or $0.03 per share,
compared to the net loss of $1.2 million, or $0.04 per share, in
the same quarter of 2012.
� Production was down 9.3% from the first quarter 2012
to the first quarter 2013.
Saratoga's historical price, revenue and net income:
Saratoga Resources has a market cap of $50.4 million; its shares
were traded at around $1.65 with a P/E ratio of 5.40 and a P/S
ratio of 0.60. Saratoga had an annual average earnings growth of
46.8% over the past five years.
Jim Simons is the only guru that holds a stake in Saratoga
Resources. You can view his holding history here.
Fifth Street Finance (
On June 20 two corporate executives made significant buys into
Fifth Street Finance.
CEO Leonard Tannenbaum added 20,000 shares to his stake. These
shares traded at an average price of $9.94 per share for a total
purchase amount of $198,000 for Tannenbaum. Since his buy, the
price per share has increased approximately 1.51%. As of his most
recent purchase, the CEO holds nearly 2 million shares of the
President and Secretary Bernard Berman added a much smaller 1,000
shares to his holdings. He bought these shares at an average
price of $9.95 per share for a total transaction amount of
$9,950. Since his buy, the price per share has increased
approximately 1.41%. Berman currently holds at least 20,968
shares of Fifth Street.
Fifth Street Finance is a specialty finance company that lends to
and invests in small and mid-sized companies in connection with
investments by private equity sponsors. The company's investment
objective is to maximize its portfolio's total return by
generating current income from its debt investments and capital
appreciation from its equity investments.
Fifth Street Finance announced the closing of its acquisition of
Healthcare Finance Group on June 13. FSC appointed Dan Chapa as
the new CEO of Healthcare Finance.
Fifth Street Finance's historical price, revenue and net income:
The analysis on Fifth Street reports:
� Revenue has been in decline for the past three years
� The company has issued $746.755 million in debt over
the past three years.
� The P/E ratio is nearing a 5-year low of 9.5.
According to the Peter Lynch Valuation Chart, Fifth Street
Finance appears to be undervalued:
Fifth Street Finance has a market cap of $1.21 billion; its
shares were traded at around $10.09 with a P/E ratio of 10.00 and
a P/S ratio of 6.10. The dividend yield of Fifth Street Finance
stocks is 11.50%. The company had an annual average earnings
growth of 36.7% over the past five years.
Jeremy Grantham and David Einhorn hold a stake in Fifth Street
Finance. Click here to see their holding histories.
Harris & Harris Group (
On June 14, two corporate executives made significant buys into
Harris & Harris.
Senior VP Robert Burns bought 1,500 shares at an average price of
$3.27 per share. This cost the VP a total of $4,905. Since his
buy, the price per share has dropped an additional 5.2%. Burns
currently holds on to 38,580 shares of Harris & Harris stock.
Chairman and CEO Douglas Jamison purchased 4,000 shares of his
company's stock at an average price of $3.27 per share. This cost
the CEO a total of $13,080. Since his buy, the price per share
has dropped 5.2%. Jamison currently holds on to at least 196,334
shares of company stock.
As the insider chart above shows, Harris & Harris has strong
insider ownership. These insiders increase their buying as share
Harris & Harris is an internally managed venture capital
company specializing in nanotechnology and Microsystems. The
company's primary investment objective is to achieve long-term
capital appreciation by making venture capital investments.
Generation of current income is a secondary objective. The
company defines venture capital investments as the money and
resources made available to privately held and publicly traded
small businesses that it believes have exceptional growth
Harris & Harris' historical price, revenue and net income:
Harris & Harris has a market cap of $96.3 million; its shares
were traded at around $3.10 with a P/E ratio of 10.90 and a P/S
ratio of 137.00.
Chuck Royce currently maintains shares of Harris & Harris.
Click here to see his holding history.
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