Insiders All Over This Stock

Written by GSCR Staff   
Friday, 01 June 2012 09:55

The ugly market creates an opportunity to buy a stock that could have a strong performance next week. Vocus Inc. (NASDAQ – VOCS - $15.39) Vocus is a leading provider of cloud marketing software that helps businesses reach and influence buyers across social networks, online and through media. The Company offers an integrated suite that combines social marketing, search marketing, email marketing and publicity into a comprehensive solution to help businesses attract, engage and retain customers. Vocus software is used by more than 120,000 organizations worldwide.

Since the company is tangentially in the social media space, the lousy Facebook (NASDAQ – FB) IPO didn’t do it any favors. Nonetheless, the Company has had an interesting May and next week could provide investors with a quick pop.  FBR raised its rating and target on the stock to Outperform and the $18-20 range.  Plus, four insiders, including the Chairman/CEO, COO, CFO, and a Director all bought stock at these prices.  In fact the Chairman spent nearly $1 million on his purchases.

This scale does not happen often, but the stock had slid down in recent months, and has really based nicely. Next week (June 6th) the Company is hosting an Analyst Day and its annual User’s Conference which usually means a lot of buzz will be coming from this thing.

There is virtually no debt and the Company is very profitable and throwing off a good deal of cash.  But, since the valuation is just okay, not great, we view it as good for a trade.  Remember, if 4 senior people are buying stock, that can’t be a bad thing.

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