Stocks With Insider Buying, Buybacks: CVS

Lexmark reported a slow first quarter and experienced a 7% drop in revenue, from $1.26 billion to $1.18 billion. On a positive note, the company reported 12.5% year-over-year growth in GAAP EPS and generated $178 million in cash.

"Our first-quarter results reflect the strategic shift that we began in the second half of 2007," said Paul J. Curlander, Lexmark chairman and CEO. "Although EPS greatly exceeded expectations in the first quarter and we had good cash generation performance, we have more work to do as we continue to implement our strategy to drive our growth in higher-usage segments."

During the quarter, Lexmark was presented with several awards of excellence from respected testing labs and technology publications, exhibiting its initiative to increase its presence in high-growth color laser printer and color multifunction product segments.

The Lexmark C530dn and C780n were added to PC World magazine's Top 10 Color Laser Printers list. Another printer, the Lexmark X560n, was awarded a "four-star, highly recommended" rating from independent test lab Bertl. Yet another, the Lexmark X500n, was named a Top Five Color Laser Multifunction Printer by PC World.

Its also good to see that Renaissance Technologies holds Lexmark in its portfolio. This New York-based hedge fund was started by Jim Simons in 1982. Its $5 billion Medallion Fund has averaged 38% annual returns, after fees, since 1989 and is considered in the industry to be the most-successful hedge fund. The fund also likes Johnson & Johnson and alcohol producer Diageo.

Another remarkable hedge fund, Maverick Capital, is also investing in Lexmark. It has long been known as one of the largest and most consistently successful hedge funds. It was started in 1993 with $38 million in capital by Lee S. Ainslie III, who was a protege of the legendary investor Julian Robertson at Tiger Management, one of the most successful hedge funds in history. The fund recently added Starbucks and pharmaceutical company Wyeth to its portfolio.