Bargain Hunters Take Note: Insider Cluster-Buying At CFP

A particularly strong insider buying signal is what we call a "cluster-buy" where three or more different insiders make open market purchases within a short period of one another. At Cornerstone Progressive Return Fund (CFP), 3 different insiders purchased 7,352 shares at an average price of $4.61/share, for a total of $33,893, with the most recent purchase on June 5, 2014.

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Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. So when multiple insiders all decide to make purchases around the same time, it could be a strong indication that the stock is undervalued. Below is a table summarizing the insider buys that make up this "cluster":

Purchased Insider Title Shares Price/Share Value
06/05/2014 Glenn W. Wilcox Sr. Director 120 $4.61 $553.20
06/05/2014 Scott B. Rogers Director 2,111 $4.61 $9,731.71
06/05/2014 Ralph W. Bradshaw President 5,121 $4.61 $23,607.81

The chart below shows the one year performance of CFP shares, versus its 200 day moving average. Note that CFP's low point in its 52 week range is $4.58 per share, with $6.02 as the 52 week high point — that compares with a last trade of $4.73, with shares currently trading up about 0.2% on the day.

Cornerstone Progressive Return Fund Chart

The current annualized dividend paid by Cornerstone Progressive Return Fund is $0.9276/share, currently paid in monthly installments, and its most recent dividend has an upcoming ex-date of 07/11/2014. Below is a long-term dividend history chart for CFP, which can be of good help in judging whether the most recent dividend with approx. 19.6% annualized yield is likely to continue.

CFP+Dividend+History+Chart

According to the ETF Finder at ETF Channel, CFP makes up 4.62% of the Guggenheim Timber ETF ( CUT) which is trading higher by about 0.5% on the day Monday.

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