INSIDER PURCHASES
WWW.CHAINBRIDGEINVESTING.COM
CHAIN BRIDGE INVESTING
DECEMBER 20, 2009
LARGE INSIDER PURCHASES FROM DECEMBER 14 - 18, 2009
Chain Bridge Investing (“CB”), on a weekly basis, will shift through the significant purchases — defined as an investment of $100,000 or more — that high level managers make in the companies they operate. While an insider’s purchase of his company is not a guarantee that the stock price will increase, a significant 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 larger the insider’s ownership the more likely the insider will take corporate actions that are in favor of the shareholder, thus another reason for an investor seeking to allocate capital to prefer insider purchases. 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. If CB discovers any future investment potential in DPL, it will be posted on www.chainbridgeinvesting.com. 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/.
EXHIBITS
Exhibit A: Companies with Large Insider Purchases from December 14 - 18, 2009
Date 12/17/2009 12/17/2009 12/16/2009 12/16/2009 12/15/2009 Insider Walter P. Havenstein Paul M. Barbas Stephen L. Day Federick J. Boyle Leonard M. Tannenbaum Title CEO President & CEO CEO & President SVP & CFO CEO & President Shares Trade Price Cost (000s) Company 28,000 $ 19.34 $ 541.52 SAIC, Inc. 6,000 27.84 167.04 DPL Inc. 76,937 2.14 164.65 Dover Saddlery, Inc. 10,500 28.48 299.04 DPL Inc. 20,000 10.19 203.80 Fifth Street Finance Corp. Ticker SAI DPL DOVR DPL FSC P/E P/FCFPS 15.6x 12.2x 12.6x 38.2x nm 4.4x 12.6x 38.2x 40.8x nm Oper. LT Debt/ Margin Total Cap. 8.1% 32.6% 27.7% 56.0% -15.8% 65.3% 27.7% 56.0% -51.8% 0.0%
* CEO = Chief Executive Officer, P/E = Price/Earnings Ratio, P/FCFPS = Price/Free-Cash-Flow-Per-Share, Oper. Margin = Operating Margin; LT Debt/Total Cap. = Long-Term Debt/Total Capital, nm = not material. * All company financial data is downloaded from Yahoo and Stock Investor Pro, Chain Bridge Investing does not guarantee the accuracy of these figures and encourages readers to do their own research.
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INSIDER
PURCHASES
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CHAIN BRIDGE INVESTING
PAGE 2 DECEMBER 20, 2009
EXHIBITS (CONTINUED)
Exhibit B: Companies with Large Insider Purchases from December 14 -18, 2009
# 1 2 3 4 Company Name SAIC, Inc. DPL Inc. Dover Saddlery, Inc. Fifth Street Finance Corp. Ticker SAI DPL DOVR FSC Industry Software & Programming Electric Utilities Apparel/Accessories Misc. Financial Services Exchange New York New York Nasdaq New York Website http://www.saic.com http://www.dplinc.com http://www.doversaddlery.com/ http://www.fifthstreetfinance.com/ Country United States United States United States United States
Exhibit C: Companies with Large Insider Purchases from December 14 -18, 2009
# 1 2 3 4 Company Name SAIC, Inc. DPL Inc. Dover Saddlery, Inc. Fifth Street Finance Corp. Price $ 18.85 27.90 2.05 10.29 % of 52- Mkt. Cap. Cash Wk. High (m) Debt (m) (m) 92.3% $ 7,463 $ 1,106 $ 991 96.7% 3,342 1,492 63 68.8% 11 13 0 90.6% 390 113 EV (m) $ 7,578 4,770 23 277 Short Gross Ratio Margin 3.4x 13.8% 2.9x 63.9% 1.0x 37.0% 5.8x 72.1% Oper. RoA RoE Margin (LTM) (LTM) 8.1% 9.3% 22.5% 27.7% 6.8% 24.8% -15.8% -52.5% -213.8% -51.8% -0.4% -0.4%
Exhibit D: Companies with Large Insider Purchases from December 14 -18, 2009
# 1 2 3 4 Company Name SAIC, Inc. DPL Inc. Dover Saddlery, Inc. Fifth Street Finance Corp. P/E PE Yr+0 15.6x 14.8x 12.6x 13.1x nm 25.6x 40.8x 9.1x PE PE - 3 Yr. Yr+1 Avg. EPS PEG 13.4x 18.6x 1.1 11.2x 16.9x 1.9 14.6x nm 0.9 8.0x 60.5x 1.5 P/S .72x 2.11x .15x 7.79x % S 1 Yr. P/B P/ FCFPS CapEx/S Gwth 3.4x 12.2x 0.6% 12.8% 3.1x 38.2x 13.0% 5.7% 1.7x 4.4x 0.8% -4.2% 1.0x nm 0.0% 50.0% S 3 Yr. EV/ LT Debt/ Net Debt/ CAGR EBITDA Total Cap. EBITDA 10.2% 7.91x 32.6% .12x 7.6% 8.23x 56.0% 2.47x 7.5% 7.22x 65.3% 3.91x nm nm 0.0% nm
* Abbreviations: EV = Enterprise Value; M = Millions; LTM = Latest-12 Months; RoA = Return on Assets; RoE = Return on Equity; P/E = Price/Earnings; PEG = Price/Estimated Earnings Growth; P/S = Price/Sales; P/B = Price/Book; P/FCFPS = Price/Free Cash Flow per Share; CapEx = Capital Expenditures; S = Sales; CAGR = Compounded Annual Growth Rate; EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization; NM = Not Material. * All quantitative data has been downloaded from several databases, the viewer should check company filings to verify these numbers. This presentation is meant to provide the reader with some * Due to formatting some company names may be abbreviated.
INSIDER PURCHASES © 2009 Chain Bridge Investing
h some * Due to formatting some company names may be abbreviated.
INSIDER PURCHASES © 2009 Chain Bridge Investing