Insiders Buying Genie Energy after Spin-off from IDT Corporation (GNE, IDT, APA)
Genie Energy is up 24.30% for 2012
Genie Energy (NYSE: GNE) is a spin-off from IDT Corporation (NYSE: IDT). Like other companies in its sector like Apace Oil & Gas (NYSE: APA), the rising price of crude oil has been rewarding for the shareholders of Genie Energy as it is up 24.30% for 2012.
Even more compelling for investors is that insiders are buying at Genie Energy. Recently, three insiders have purchased shares. Chairman of the Board Howard S. Jonas bought 52,000 shares at $9.90 each for a total of $514,800. He now owns 2,195,624 shares of Genie Energy. Mr. Jonas is Chairman of the Board for both IDT Corporation and Genie Energy.
Others buying were Chief Executive Officer Claude Pupkin and Chief Financial Officer and Treasuer Avi Goldin. Mr. Pupkin bought 5,350 shares at $9.42 each. Avi Goldin acquired 1,900 shares, paying $9.69 per share for a total purchase of $18,411.
Investing legend Peter Lynch has stated that there are many reasons for insiders to sell a stock but only one reason to buy. The reasons for selling could include the need to pay tuition or buy a home. But, Lynch counseled, there is only one reason for an insider to buy: they expect the share price of the company to rise.
Now around $9.80 a share, Genie Energy was spun-off from IDT Corporation last October and closed trading for the first day at $8.64. It is noteworthy for so much insider buying to take place less than six months after the company went public. Genie Energy pays a dividend of about 2%.
Do NOT buy or sell GNE, IDT or APA until you have read everything.
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| Date: | June 18, 2013 | |
| Price: | Free | |
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