Below are 9 stocks where the CEO has bought company stock in the past week. Each of these purchases are of a significant enough size to attract attention in the market and two, in my opinion, are particularly noteworthy. Chesapeake Energy (CHK) CEO Aubrey McClendon almost went broke when he owned stock on margin in 2008. He’s back this week with a major purchase. In addition, new Sears (SHLD) CEO Lou D’Ambrosio ponied up $1 million for company shares last week.
Here are the 9 stocks from the past week with CEO buys of at least $100,000:
Chesapeake Midstream Partners (CHKM): This company was formed last year from Chesapeake Energy and Global Infrastructure Partners as a Master Limited Partnership (MLP). CHKM operates pipelines and is 84% owned by the two companies above. If you’re interested in learning more, there was a good article written recently entitled Chespeake Midstream: Problems with Potential. CHKM obviously is heavily dependent on Chesepeake Energy. CEO Michael Stice bought $100,000 worth of shares on March 7 and now owns more than 12,000 shares.
Chesapeake Energy (CHK): Joining Stice in his bullishness was CEO Aubrey McClendon. He bought nearly $500,000 of company stock on the open market on March 8. CHK’s board has been under pressure for giving huge bonuses and options to McClendon since a margin call in 2008 wiped him out. You may remember that they even purchased his vintage maps. Carl Icahn’s recent stock purchases seem to be sobering CHK up a bit. Let’s just hope that McClendon didn’t use leverage for this purchase.
Western Asset Emerging Markets Income Fund II (EDF): EDF is a closed end fund focusing on emerging markets. CEO Peter Wilby bought 5,000 shares on March 8 totaling about $120,000.
The Bancorp (TBBK): This cleverly named bank held a public offering on March 2 and raised $50 million. CEO Betsy Cohen participated in the offering by purchasing 97,500 shares, totaling about $804,000. The Bancorp serves small and medium size businesses in the Philadelphia and Wilmington, DE area.
Western Gas Partners, LP (WES): Western Gas Partners is an MLP formed by Anadarko Petroleum. They priced a public offering at $35.15 on March 1 and CEO Donald Sinclair participated by purchasing 11,380 shares. The proceeds are being used to pay down a line of credit. Their dividend yield is currently 4.4%.
Cenevo (CVO): CEO Robert Burton purchased $387,000 worth of shares on March 4. He currently owns almost 5% of the company. Cenevo makes envelopes, forms, and labels, and does commercial printing. The company recently announced a quarterly loss of $0.16 and made two acquisitions last quarter, including buying the envelopes products group from MeadWestvaco.
China TransInfo Technology (CTFO): After making two recent purchases, CEO Xia Shudong made another purchase on March 3. This time he bought about $104,000 worth of shares. I discussed his purchases last week. CTFO is a Chinese technology company that focuses on transportation planning, toll collection, taxi monitoring and other related applications.
CleanTech Innovations (CTEK.PK): CleanTech is another stock I mentioned last week. CEO Lu Bei bought $240,000 of shares on March 3 after also buying $240,000 of shares on March 1. He owns more than 50% of the outstanding shares.
Sears Holdings (SHLD): Eddie Lampert released the company’s annual letter two weeks ago and announced that Lou D’Ambrosio would be taking over as CEO. D’Ambrosio immediately purchased about $1 million worth of stock. Previous CEO Bruce Johnson had served as the interim CEO for three years. Sears' stock ran up above $120 per share in May last year, but recently has traded in the $85 range. It has been incredibly volatile through the years, but apparently D’Ambrosio feels comfortable making this substantial investment now.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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