INSIDER PURCHASES
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CHAIN BRIDGE INVESTING
JANUARY 3, 2010
LARGE INSIDER PURCHASES FROM DECEMBER 28 - 31, 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 that places 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 Optimer Pharmaceuticals, Inc. (“OPTR”) may warrant further consideration from CB. If CB discovers any future investment potential in OPTR, 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 28 - 31, 2009 Date Insider 12/30/2009 Owen E. Kratz 12/29/2009 Michael N. Chang 12/29/2009 Tessie M. Che Title President & CEO President & CEO COO and SVP Shares Trade Price Cost (000s) Company 100,000 $ 11.69 $ 1,169.00 Helix Energy Solutions Group I 18,000 10.83 194.94 Optimer Pharmaceuticals, Inc. 18,000 10.83 194.94 Optimer Pharmaceuticals, Inc. Ticker P/E P/FCFPS HLX nm 14.0x OPTR nm nm OPTR nm nm Oper. LT Debt/ Margin Total Cap. -33.8% 48.0% nm 0.0% nm 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; COO = Chief Operating Officer; SVP = Senior Vice President. * 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
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EXHIBITS (CONTINUED)
Exhibit B: Companies with Large Insider Purchases from December 28 - 31, 2009
# Company Name 1 Helix Energy Solutions Group I 2 Optimer Pharmaceuticals, Inc. Ticker Industry HLX Oil Well Services & Equipment OPTR Biotechnology & Drugs Exchange Website New York http://www.HelixESG.com Nasdaq http://www.optimerpharma.com/ Country United States United States
Exhibit C: Companies with Large Insider Purchases from December 28 - 31, 2009
# Company Name 1 Helix Energy Solutions Group I 2 Optimer Pharmaceuticals, Inc. Price $ 11.75 11.27 % of 52- Mkt. Cap. Cash Wk. High (m) Debt (m) (m) EV (m) 69.4% $ 1,226 $ 1,361 $ 411 $ 2,176 74.3% 373 19 354 Short Gross Ratio Margin 2.5x 19.7% 18.3x nm Oper. RoA RoE Margin (LTM) (LTM) -33.8% -15.5% -51.9% nm -83.4% -99.4%
Exhibit D: Companies with Large Insider Purchases from December 28 - 31, 2009
# Company Name 1 Helix Energy Solutions Group I 2 Optimer Pharmaceuticals, Inc. PE PE - 3 Yr. % S 1 Yr. P/E PE Yr+0 Yr+1 Avg. EPS PEG P/S P/B P/ FCFPS CapEx/S Gwth nm 20.9x 10.6x 160.2x nm .66x .8x 14.0x 23.8% 21.6% nm nm nm nm nm 468.99x 10.1x nm 25.0% 25.0% S 3 Yr. EV/ LT Debt/ Net Debt/ CAGR EBITDA Total Cap. EBITDA 39.0% 3.98x 48.0% 1.74x -21.9% -8.17x 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