Top 10 Stocks With Big Insider Buying, Buybacks

Updated from 6:14 a.m. EST

At Stockpickr.com, we keep track of the Top 10 Insider Purchases and Buybacks each week. Here's the perfect setup in my mind: insiders buying the stock, the company buying back its own shares and a super investor like Warren Buffett also making a bullish bet on the stock.

If I can get three out of three, I'm in heaven. If I can get two out of three, or even one out of three, I'm still pretty happy about the situation, particularly if the stock is cheap in other ways as well.

Each Thursday we update the Stockpickr Top 10 Insider Purchases and Buybacks portfolio, featuring stocks that in recent days have had big insider purchases or newly announced buybacks, as well as super investors accumulating shares.

IBMIBM makes this week's portfolio. Big Blue recently announced plans for an accelerated repurchase of up to $1 billion of its shares in addition to a $12.5 billion accelerated share repurchase announced in May. The shares are being repurchased from three banks through accelerated repurchase agreements by the end of February 2008.

The company has an aggressive plan to increase earnings per share to $11 by 2010 from $6.97 in the most recent fiscal year. This involves stock buybacks, gross margin expansion in its software division and tinkering with contributions to its pension program.