Current MFI Stocks with Favorable Insider Activity

The following current MFI stocks have had notable favorable buying activity, based on SEC form 13-D, 13-G and 4 filings, within the past month:

• American Eagle Outfitters (AEO). Chairman of the Board Jay Schottenstein made over $24 million in open market purchases for 848,500 shares at an average price of $24.10. Wow! The stock closed on Friday at $25.43. [Full Disclosure: I own shares of AEO in my MFI portfolio.]

• Conn's (CONN). SF Holding Corp. and its affiliates disclosed a 50.1 percent state in the company. In their amended 13-D filing, they disclosed they are "presently considering various alternatives which may ultimately lead to one or more possible transactions with respect to their investment in the Issuer" which "may include the acquisition of additional shares or selected divestitures of shares of Common Stock of the Issuer, a going private transaction in the form of the acquisition of all outstanding shares of Common Stock not currently owned by the reporting persons, or another form of extraordinary transaction." The filing went on to disclose that "a representative of one of the reporting persons discussed the ... idea of a possible going private transaction with a member of management of [Conn's]. Since the date of the filing, Conn's shares have appreciated nearly twenty percent.

• Cymer (CYMI). Frequent activist firm S.A.C. Capital Advisors disclosed a 5.3 percent stake in the company. S.A.C. most recently took an activist stance with non-MFI stock i2 Technologies (ITWO); however, the Cymer filing, was of the passive (13-G) variety. Shares are up roughly six percent since the date of the filing.

• Hercules Offshore (HERO). Over the past month, officers and directors have made open market purchases for 49,000 shares totaling $1.24 million or $25.35 per share. Director Steven Webster purchased 40,000 shares for a total of just over $1 million or $25.36 per share, and CEO/President Randall Stilley purchased the remaining 9000 shares for $25.30 per share. HERO closed Friday at $27.04. This level of financial commitment by company insiders is why I remain bullish on the stock, which is a key holding in my MFI portfolio.