Top 10 Stocks With Big Insider Buying, Buybacks

The Cincinnati-based company anticipates generating a profit of 88 cents to 90 cents a share in the first quarter of 2008 and $3.44 to $3.47 a share for the full year. Analysts are looking for 91 cents for the quarter and $3.48 for the year.

Current credit market troubles shouldn't be a problem for the company going forward, said CFO Clayton Daley. P&G will "more likely be a seller of businesses rather than a net buyer." Commodity-cost pressure still remains, but the company hinted at raising prices if necessary.

"This marks the sixth consecutive year in which P&G delivered top-line growth at or above the company's targets," CEO A.G. Lafley said in a prepared statement. "These results were achieved at the same time the organization was integrating Gillette, which is progressing ahead of plan. Our strong cash generation results and our confidence in the business outlook have enabled us to substantially increase our share repurchase commitment for the next three years."

Bear Stearns analysts offer a positive outlook on P&G, saying, "We think the glass was half full" in the fourth quarter of 2007.

Stearns says it saw encouraging signs such as "attractive valuation; margin expansion, despite cost inflation; and improvements in core brands such as Crest and Olay."

In a recent report, Bear Stearns reiterated its outperform rating and slapped a $71 target price on the stock. "By the end of 2007, we see potential upside for PG to roughly $74, and downside to only $58," the analysts said. P&G shares closed at $65.16 Wednesday.

Adding to P&G's bullish case is the fact that Prince Al-Waleed is betting on the stock. This member of the Saudi royal family is known for his international investments and multibillion-dollar business transactions.

We also like to see that the Clipper Fund owns P&G stock. The Clipper Fund looks to provide long-term capital growth and capital preservation. The fund's investment adviser, Davis Selected Advisers, conducts extensive research to seek investments primarily in common stocks of large well-managed companies with durable business models that can be purchased at attractive valuations relative to their intrinsic value. The fund, which was up 15.3% in 2006 and boasts a 10-year average annualized return of 12.2%, also owns Costco(COST Quote).

With P&G, we like the new huge stock buyback, its great quarter with very little risk going forward, support from one of the top equity research firms and top-of-the-line investors buying shares. Not a bad opportunity.