Weekly Top Insider Buys: Jefferies Group Inc., The Colonial BancGroup Inc., Cathay General Bancorp, SLM Corp., IberiaBANK Corp.

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May 01, 2008
Insiders are buying beaten down banks and financials. This is the highlight of top insider buys. Related Companies: The Colonial BancGroup Inc. (CNB, Financial), Cathay General Bancorp (CATY, Financial), SLM Corp. (SLM, Financial), IberiaBANK Corp. (IBKC, Financial).


Jefferies Group Inc. (JEF, Financial): Director Joseph S. Steinberg and Director Ian M. Cumming Bought 5,472,423 Shares


Investment bank Jefferies Group, Inc. (JEF) set their dividend at 12.5 cents per share for the current quarter. The company recently sold 26.6 million shares of common stock to holding company Leucadia National, who currently owns 13.7% stake in JEF. The company is trying to raise funds for its trading and investment losses. JEF lost $60.5 million in the first quarter compared to gain of $62.3 million a year ago. The company shares are currently traded towards the low end with a 52-week range of $13.68 and $33.80 per share.


John Keeley, Ron Baron, Martin Whitman, and Third Avenue Management own shares of JEF.


Director Ian M. Cumming and Director Joseph S. Steinberg are reported buying 5,472,423 shares, which is an indirect holding of Leucadia National (LUK). Another buy was made by Director Robert Eugene Joyal, who bought a total of 8,300 shares in November around $23 a share. Director Frank J. Macchiarola and EVP Joseph A. Schenk sold 7,471 shares at $18.97 and 40,000 shares at $25.31.


Jefferies Group Inc. has a market cap of $2.48 billion; its shares were traded at around $18.80 with a P/E ratio of 109.94 and P/S ratio of 1.86. The dividend yield of Jefferies Group Inc. stocks is 3%.


The Colonial BancGroup Inc. (CNB): Director Milton E. Mcgregor Bought 200,000 Shares


Colonial BancGroup, Inc. (CNB) just completed the sale of $350 million in common stock, totaling 43.7 million shares. The holding company’s first quarter profits declined 32% to $24.8 million or $0.16 a share from $36.5 million or $0.24 a share in the previous year. Mid-March, Colonial Bancgroup received approval from the government to open ten new branches.


Director Milton E. Mcgregor bought 200,000 shares on 4/21/08 at $8. Other insiders made their buy between $8 and $13.55: CEO Robert E. Lowder bought 1,000,000 shares; Director Clinton O. Holdbrooks bought 80,000 shares; Director Lewis E. Beville bought 28,500 shares; Director Robert S. Craft bought 25,000; CFO Sarah H. Moore bought 18,067 shares; Directors Deborah L. Linden and Simuel Sippial Jr. each bought 5,000 shares; Director John Ed Mathison bought 4,000 shares; Director William E. Powell bought 3,000 shares; Director Augustus K. Clements III bought 2,000 shares; Director John C. H. Miller Jr. bought 1,000 shares.


The Colonial BancGroup Inc. has a market cap of $1.34 billion; its shares were traded at around $8.14 with a P/E ratio of 7.47 and P/S ratio of 1.54. The dividend yield of The Colonial BancGroup Inc. stocks is 4.6%.


Cathay General Bancorp (CATY): Director Thomas C. T. Chiu Bought 49,256 Shares


Cathay General Bancorp (CATY) announced a higher than expected earnings of $27.3 million or $0.55 a share compared with $30 million or $0.57 a share a year ago. The Holding Bank had steady growth in its interest and non-interest income, which were up 3% and 11%, respectively.


Ron Baron owns 822,600 shares as of 12/31/07.


Director Thomas C. T. Chiu bought 49,256 shares at $16.87 on 4/23/08, and another 3,500 shares at $24.54 on 1/30/08.


Cathay General Bancorp has a market cap of $854.31 million; its shares were traded at around $17.05 with a P/E ratio of 6.98 and P/S ratio of 2.68. The dividend yield of Cathay General Bancorp stocks is 2.4%.


SLM Corp. (SLM): Director Anthony P. Terracciano Bought 28,422 Shares


SLM Corporation (SLM) also known as Sallie Mae, the student loan originator, posts their first quarter loss of $104 million or $0.28 a share compared to profit of $116 million or $0.26 a share. The company said they cannot turn a profit amidst the nation’s credit catastrophe. Sallie’s shares were traded at its highest in mid-2007 around $58 per share, which currently has fallen over 70% its value year-to-date. Analysts believe the company would need to raise $500 million to get through the 2008 year.


Jean-Marie Eveillard sold out all his SLM holdings, while the following gurus bought shares in SLM: Brian Rogers, Ruane Cunniff, Charles Brandes, David Tepper, Seth Klarman, Irving Kahn, Dodge & Cox and Michael Price. Seth Klarman has more than 20% of his portfolio in SLM.


Director Anthony P. Terracciano bought 28,422 shares on 4/22/08 at $17.55. On 12/14/07, Chairman & CEO, Director Albert L. Lord sold a total of 1,265,401 shares and Director Charles L Daley sold a total of 80,023 shares at $26.85 to $27.85 per share.


SLM Corp. has a market cap of $8.4 billion; its shares were traded at around $18.53 with P/S ratio of 16.87. The dividend yield of SLM Corp. stocks is 2.1%.


IberiaBANK Corp. (IBKC): Director William H. Fenstermaker Bought 10,000 Shares


Regional bank of Louisiana, IBERIABANK Corporation (IBKC) posted 45% increase in first quarter earnings on a pre-tax gain of $6.9 million, despite higher loan provision losses. The company earned $13.4 million for the quarter or $1.05 per share of diluted earnings. Like other banks throughout the nation, IberiaBANK is expected to continue to cut margins on credit losses this year.


Director William H. Fenstermaker bought 10,000 shares on 4/24/08 at $44.87. Other company insiders sold between $45.28 and $52 since November: President, CEO Daryl G. Byrd sold 26,020 shares; Director Larrey G. Mouton sold 26,014 shares; and John R. Davis sold 11,250 shares.


IBERIABANK Corp. has a market cap of $616.57 million; its shares were traded at around $48.20 with a P/E ratio of 14.75 and P/S ratio of 3.12. The dividend yield of IBERIABANK Corp. stocks is 3%.