Insider Purchases & Buybacks: WCC

Insider purchases are often seen as a measure of confidence in a particular company. In this case, Wesco International (WCC - commentary - Cramer's Take) has seen significant insider purchases. VP of Operations Robert Rosenbaum purchased 50,000 shares of the company for $39.43 a share in late December. Director of Investor Relations Daniel Brailer also acquired 1,000 shares of the company in late December.

In addition to the insider buying, Wesco has been aggressively repurchasing its shares. The board authorized another $400 million share buyback in late September, after buying back 1.2 million shares in the third quarter. The total shares bought last year was 6.4 million, which completed the $400 million buyback program the company started in February.

The company's net sales were up 15% at $1.5 billion in the third quarter vs. $1.3 billion vs. the comparable period in 2006. Net income rose to $71.8 million, or $1.54 a share, from $59.4 million, or $1.13 a share, in the year-ago quarter.

WCC recently added staff to various longer-term sales and marketing programs, and believes that the industry is in the early phases of an investment cycle. It has made strategic acquisitions in its industry, acquiring Monti Electric Supply, a distributor of electrical construction products, with annual sales of $20 million. It also acquired J-Mark, a housing products company, with annual sales of $30 million.

There are several investment funds that own the company, and you can glance at them at Stockpickr.

It is interesting to see that Glenview Capital has recently raised its stake in WCC. Managed by Larry Robbins, the fund has $7 billion under management and is a long/short fund. This fund also owns Express Scripts (ESRX - commentary - Cramer's Take) and Borders (BGP - commentary - Cramer's Take).

The buyback program should lend support to the company's shares, insiders are purchasing said shares, and a smart fund has raised its holding of WCC. These indicate that experts ("knowledgeable investors") believe there is value here. Trading below $35, the shares are considerably lower than their 52-week high of $69.67. I believe WCC will yield positive results over the next few years. (You can view some of the latestinsider trades and buybacks in my Stockpickr portfolio.)

---

At the time of publication, Raznick had no positions in the stocks mentioned, although positions may change at any time.

Jason Raznick is president of Easy Stock Alerts and has been involved with the capital markets for several years. He has worked for Merrill Lynch, Dynamis and Tricap Holdings, a joint venture with Fortress Investment Group. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Raznick appreciates your feedback; click here to send him an email.