This is a short follow-up to yesterday's Chasing Value: IndyMac Bancorp - once in a lifetime where I highlighted my contrary position to the market selloff of IndyMac Bancorp (NYSE: IMB) sugesting there was opportunity here.
The additional information that I think should be significant to serious value investors is what insiders are doing. In April they were all buying. From Motley Fool April 11, 2007. "The one guy who should know better than anybody else how bad it could get for IndyMac's Alt-A portfolio -- its very own Chief Financial Officer Kevin Scott -- is the most recent insider to buy shares."
I gleaned this Quote from secform4.com/insider-trading Peter Lynch, "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise" The site indicates that during the month of April, in addition to the stock buys by the CFO, the President, two Directors and three Executive Vice Presidents all bought shares.
Those of you who are new to Bloggingstocks.com can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.
Disclosure: While writing yesterday's story a limit order was executed on IMB, so I own this stock.
Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.
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Reader Comments (Page 1 of 1)
5-02-2007 @ 9:32PM
Dennis Jay said...
If you dig deeper into who's buying this stock, you'll also find that the wives of several top executives are buying aggressively for their 401(k)s. Spouses tend to be more conservative about stock purchases. They know the inside story, and with the track record of this company (plus the high yield), it represents one of the best risk/reward ratios.
5-02-2007 @ 11:49PM
Ron said...
I think the surprise in housing will be to the down side - I lived through the 1990 to 1995 decline in California and I am still in the same house purchased in 1990 - nice one Ron by at the top - with 20% down as was standard in those days I was under water on the loan by 1995 and it took at least three more years to get even. I do not think a year or two or three will work off this excess as it is much bigger and more wide sread this time - as far as insiders go - well, they can afford to take a chance with all of the cheap options they hold and have a vested interest in showing false confidence in the company without much loss risk - get the stock price up and then look who the sellers are - the same ones who were selling in the housing stocks last fall once they got a rise in the stock price they dumped big time - the insiders who know the truth. This company is very risky and I don't have the cheap options to back me up - so no not a buy - dividend is at risk - the company its self is at risk. May I ask where is the exec spouse 401(k) purchases listed??? Sounds like a company pimp posting to me.........to my knowledge no such data exists nor should it.
5-07-2007 @ 5:25AM
Sheldon L said...
Buffett Comments, see: http://money.aol.com/news/articles/_a/buffett-says-subprime-woes-contained/n20070505142709990003
5-06-2007 @ 1:46PM
John said...
The key to IndyMac is not sub-prime loans but rather "Alt-A" loans. They are incredibly heavy into Alt-A. Not much history on Alt-A defaults and it is unclear how the secondary market is going to handle distressed Alt-A loans. IndyMac might be okay but they could also get creamed. Only time will tell.
5-14-2007 @ 1:37PM
alex said...
Sheldon,
Whats your take on American Home Mortgage Inv (AHM). The fundamentals seems to be amazing like IMB's ?