3 Dividend Stocks That Insiders Bought Last Week

A good investment strategy can be buying shares that the insiders have just bought recently. However, a better option could be that these companies offer a dividend to its investors. The insider trading is produced by executives and directors who have the most up-to-date information on their companies' prospects. Intimately acquainted with cyclical trends, order flow, supply and production bottlenecks, costs and other key ingredients of business success, these insiders are way ahead of analysts and portfolio managers, not to mention individual investors. In the next chart, we can see the influence of the insiders in the prices of the companies and the variations in their quotes.

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Insiders' purchases may cause an increase in the prices of shares as you have seen in the top chart. So, in this article, I will write about three dividend stocks that insiders bought last week and deserve to be considered.

National American University Holdings Inc (NAUH)

This company reported a dividend of $0.16 or the equivalent of a 3.90%. Insiders have started to snap up shares in National American University Holdings. This company engages in the ownership and operation of National American University (NAU) that provides post-secondary education services primarily for working adults and other non-traditional students in the United States.

National American University has a market cap of $101.53 million and an enterprise value of $84.20 million. Its trailing P/E is 20.89, and its forward P/E is just 8.82. National American University's estimated growth rate for this year is -50.45. It has a total cash position on its balance sheet of just $27.83 million, and its total debt is at $10.49 million.

Ronald L. Shape, CEO of National American University, has just bought 2,000 shares, or $8,200 worth of stock, at $4.2 per share.


From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its January high of $8.8 to a recent low in May of $3.48. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $4.06 a share. Look for volume that's tracking in close to or above its three-month average action of 25,895 shares.

Valhi Inc (VHI)

Valhi Inc reported a dividend of $0.20 or the equivalent of a 1.60%. Insiders have started to snap up shares in Valhi Inc. The Company operates in the chemicals, component products, and waste management businesses. The company'’s chemicals segment produces and markets titanium dioxide pigment, a white inorganic pigment used to impart whiteness, brightness, opacity, and durability for applications, such as coatings, plastics, paper, inks, food, and cosmetics.

Valhi has a market cap of $4.07 Billion and an enterprise value of $5.49 Billion. This stock trades at a cheap valuation. Its trailing P/E is 15.78, and its forward P/E is just 23.51. Valhi's estimated growth rate for this year is 352.42%. It has a total cash position on its balance sheet of just $104 million, and its total debt is at $863.80 million.

Harold C. Simmons, Chairman of the Board, has just bought 4,000 shares, or $48,800 worth of stock, at $12.2 per share.

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its December, 2011 high of $21.69 to a recent low in July of $10.67. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $12.36 a share. Look for volume that's tracking in close to or above its three-month average action of 26,655 shares.

Bank of South Carolina Corporation (BKSC)

Bank of South Carolina Corporation reported a dividend of $0.44 or the equivalent of a 3.70%. Insiders have started to snap up shares in Bank of South Carolina Corporation. This bank operates as the holding company for The Bank of South Carolina that provides commercial banking products and services to individuals, and small and medium-sized businesses in South Carolina.

Bank of SC has a market cap of $52.91 million and an enterprise value of $16.42 million. Its trailing P/E is 14.87, and its forward P/E is just incalculable. Bank of South Carolina's estimated growth rate for this year is 1.98%. It has a total cash position on its balance sheet of just $36.49 million, and its total debt is at $0.

Sheryl G. Sharry, CFO of Bank of South Carolina, has just bought 2,000 shares, or $22,900 worth of stock, at $11.45 per share. 


From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock plunged from its July high of $12.50 to a recent low in October of $10.85. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $11.9 a share. Look for volume that's tracking in close to or above its three-month average action of 2,520 shares.

*Chart data sourced from finviz.com, all other data sourced from yahoo.com as well as the webs of the previously mentioned companies.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it . I have no business relationship with any company whose stock is mentioned in this article.

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Spain Helps For The Purchase Of Efficient Cars

"Plan of aid for the purchase of efficient cars" is a new law that the Spanish government, headed by its president Mariano Rajoy, passed last Thursday. The plan provides incentives of 2,000 euros for the purchase of a car in exchange of leaving a car of more than twelve years. But that amount could ascend up to 8,000 euros in the case of the hybrid and electric vehicles during the months of October and November. These new aid in the current situation that is happening Spain lack logic. The biggest problem of the Spanish economy is the unemployment rate in September was about 25% of the population.
Meanwhile, remains in effect until the next November 30, "the program to aid in the purchase of these vehicles" that regulates the RD 648/2011 of May 9, and it was extended on 18 November of last year, according to the following ratio:

- 2,000 euros for vehicles with electrical autonomy of 15 and 40 kilometers.
- 4,000 euros for vehicles with electrical autonomy of between 40 and 90 kilometers
- 6,000 euros for vehicles with electrical autonomy of 90 km or more.

Remember that RD 648/2011 is an ancient law dated 9 May, 2011 which is still in effect until November 18, 2012. These are two different laws. These two laws can be applied simultaneously.
In this way, with the entry into force of the PIVE (Plan of aid for the purchase of efficient cars) this Monday, until the next November 30 the two aforementioned incentive programs to the purchase of hybrid and electric cars will coexist.

However, the registrations of new passenger cars in September have confirmed that this was the worst month of the Spanish automobile market, with a record of 35,146 units. This data, according to the manufacturers of automobile associations (Anfac) and sellers (Gamvan), a decrease of 38.6 % on the 55,572 registrations of the same month in 2011. These data demonstrate that the aid that predicts the Spanish state are directed to reactive the purchase of new vehicles.
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The data of the registrations for September are known coinciding with the entry into force of the Plan PIVE of aid for the purchase of cars, which, according to Anfac and scouting locations, will allow the Spanish State to collect three euros for every euro invested. The program is EUR 75 million of budget.


Historical Chart "Car Sales in Spain"

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In this graph can be checked as during the months of October and November sales of vehicles started a new impetus. This new law will support moderately the recovery of the sector.

Ford Motor Co. (F), General Motors Company (GM), PSA Peugeot Citroen (PEUGY.PK), Suzuki Motor Corp (SZKMF.PK), Kia Motors Corp. (KIMTF.PK), Volkswagen AG (VLKAY.PK) SAAB AB, Toyota Motor Corporation (TM), Tata Motors Limited (TTM), BMW, Renault are the most favored companies because of its strong position in Spain.

Conclusion

This new law could allow companies in the sector to recover the lost sales of the year during the months of October and November but the situation in Spain is on the edge of the economic abyss. The country will likely begin the steps to request a rescue to the European Union.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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2 Stocks Upgraded On October 5 To Consider

Speculating on companies whose ratings have been recently changed by analysts can be a good short-term strategy. Normally, companies will see increases in their prices after these changes. The ratings are updated daily and can therefore change daily. They can change because of a change in the analyst's estimate of the stock's fair value, a change in the analyst's assessment of a company's business risk, or a combination of any of these factors. 

I assessed companies which were upgraded on October 5, and I chose the two companies with a change in ratings to consider.
The companies with significant changes are:

• Informatica Corporation (INFA) changed rating from neutral to buy.
• The Pep Boys—Manny, Moe & Jack (PBY) changed rating from hold to buy.

An upgrade generally tends to increase the price while a downgrade does the opposite. However, it is not only the change but the reason for the change that is important to understand. I have chosen these two companies because the analysts have commented on the reasons why they have changed the ratings which let me do a better analysis.

These two stocks are valued for the change from sell, hold, market perform or neutral to buy or strong buy. It is considered a very significant change because ratings had remained static for a long time. This change has to strongly favor the valuation of the companies mentioned above as well as the vision of future investors. Normally, these changes for the better are due to lower debt and improvement of the companies' cash. These are two keys to perform a follow-up or think in any purchase of these stocks.
Here is a look at the two stocks:

Informatica Corporation

Informatica Corporation provides enterprise data integration and data quality software and services worldwide. The company offers PowerCenter, which integrates data virtually from business systems in various formats and delivers that data throughout the enterprise; PowerExchange that enables information technology organizations to access the sources of enterprise data without having to develop custom data access programs and Data Services for finding, integrating and managing data in the enterprise.
Informatica Corporation has a market cap of $2.94 Billion and an enterprise value of $2.26 Billion. Its trailing P/E is 26.53, and its forward P/E is just 16.43. Informatica's estimated growth rate for this year is 27.17%. It has a total cash position on its balance sheet of just $565.28 Million, and its total debt is at 0. So, its total debt/equity is just 0.

New Rating

Nomura Securities upgraded Informatica from Neutral to Buy but cut its price target from $38 to $33
Analyst at Nomura Securities, Rick Sherlund, said:

"This will likely take several quarters to get through, although we like the current risk / reward in the stock. New sales management is in transition and the recovery in license revenues will likely take several quarters."

My Rating and Technical Analysis

Informatica Corporation's revenue / EPS estimates for 2012 and 2013 are now $798 / $1.28 and $865 / $1.40 versus estimates prior to the pre-announcement of $827 / $1.45 and $930 / $1.63, respectively. Nomura analysts expect improved earnings in the medium term. They base their opinion on the sales growth on the consolidation of new licenses. Although Nomura has cut its target price of Informatica Corporation, I do not find logical foundations to support its position because Informatica has cut its estimates of annual sales at 3% for 2012 and 2013. The most important risk on this stock is that the company's quarter revenues do not have the market's expected increase.

 













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From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its April high of $54.49 to a recent low in October of $23.83. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $27.74 a share. Look for volume that's tracking in close to or above its three-month average action of 3,013,479 shares.

The Pep Boys—Manny, Moe & Jack

The Pep Boys—Manny, Moe & Jack together with its subsidiaries, provides automotive repair and maintenance services, tires, parts, and accessories. Its product lines consist of tires; batteries; new and remanufactured parts for vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and non-automotive merchandise, such as generators, power tools, and personal transportation products.

The company has a market cap of $544.21 Million and an enterprise value of $697.67M Million. This stock trades at a cheap valuation. Its trailing P/E is 14.88, and its forward P/E is just 16.30. The Pep BoysManny's estimated growth rate for this year is 36.96%. It has a total cash position on its balance sheet of just $150.83 Million, and its total debt is at $304.25 Million. So, its total debt/equity is just 55.99.

New Rating
Benchmark upgraded Pep Boys - Manny, Moe & Jack from Hold to Buy with a price target of $12.00 (from $10.00).

Analyst at Benchmark, Ronald Bookbinder, said:

"We believe an improving tire profit environment and a possible debt refinance could provide catalysts for earnings improvement, despite weakness on discretionary items. We believe the tire profit margin environment has started to show improvement with further improvement coming in Q4. The balance sheet is strong, as the Company builds cash to pay down and refinance debt."

My Rating and Technical Analysis
Benchmark expects a growth in sales of tires in the Q4. The financial position of the company is going through hard times due to the high debt. If the company achieves a refinancing of debt, stock's prices could be higher, but the most important risk is that the company's quarter revenues do not have the market's expected increase. In my opinion, the risk/return is not attractive. I would expect a growth on sales in the next financial report.

 













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From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock plunged from its February high of $15.46 to a recent low in June of $8.31. After hitting that low, the stock bounced to its current price of $10.27. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $10.45 a share. Look for volume that's tracking in close to or above its three-month average action of 595,255shares.

*Chart data sourced from finviz.com, all other data sourced from yahoo.com.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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