APT $1.57 daily and weekly charts LINK BACK FOR OVER 700 CHARTS
Second quarter 2010 consolidated revenue decreased 22.9%, to $11.2 million, from $14.5 million in the second quarter of 2009, primarily due to a decrease in demand for N-95 respirator masks relating to the H1N1 Influenza A pandemic in 2009. Building Supply segment sales for the second quarter of 2010 increased 29.4%, to $4.9 million, from $3.8 million in the same quarter of 2009. The Company added to Building Supply segment sales staff in anticipation of significant growth opportunities. Inventory increased by $4.8 million, or 36.4%, to $17.9 million as of June 30, 2010, from $13.1 million as of December 31, 2009. The increase was primarily due to an increase in inventory for the Disposable Protective Apparel segment to strengthen our position in the marketplace, an increase in inventory in the Infection Control segment due to a stockpiling of N-95 particulate respirator masks and an increase in inventory in the Building Supply segment due to increased sales.
DOLE $9.25 daily and weekly charts by XELA22 6 Sep 10.
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One of my all-time favorite investment quotes comes from famed Fidelity Magellan fund manager 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."
Insider buying is an indicator you can use to screen for ideas. The most meaningful signal is when an executive or director buys shares on the open market just like you or me. It's too easy for management to build a sizable stake in the company by simply exercising stock options. On the other hand, when they open up their wallet and pay cold, hard cash for shares, that's important to notice -- especially if the purchase is large, which I loosely define at $500,000 or more.
By itself, insider buying is not a compelling enough reason for you to purchase shares. While management only buys if it thinks the stock will go up, you have to recognize that management may not be the best judge of what the company is worth. Even though they have an informational edge over you about the company's prospects, there is the risk that with a large part of their personal wealth on the line they have a biased view of the company's value and they are likely to overvalue the shares.
You can look for management buying as a signal that something good may happen for the company, but you have to take the next step of deciding for yourself if the stock is cheap. Two quick and dirty numbers you can look at are the company's free cash flow yield and where the stock is trading relative to its 52-week low.