Insiders Buy Firearms, Sporting Stocks (HIBB)

[HenryTo]

As you can see, I am pretty active this morning. I will look more into Hibbett Sporting Goods (HIBB), but not Smith & Wesson. Please keep in mind everything is very preliminary at this point in my "analysis." Again, disclaimer: This is meant for education purposes only!
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INSIDE SCOOP
Insiders Buy Firearms, Sporting Stocks

By RUTH MANTELL

INSIDERS ARE LOOKING FOR a couple of outperforming firearms and sporting goods companies to continue to beat the market in the future.

Smith & Wesson and Hibbett Sporting Goods are among the companies that reported the largest insider stock purchases to the Securities and Exchange Commission last week, according to InsiderInsights.com.

Both companies also have enjoyed impressive returns during the past 12 months: Smith & Wesson's shares have more than tripled, while Hibbett's are up 64%.

Jonathan Moreland, director of research at InsiderInsights.com, says the insider buying at Smith & Wesson is particularly notable. In late September, Robert Scott, a company director, bought 30,000 Smith & Wesson shares worth about $167,000, according to an SEC filing.

"The buying was quite striking considering how much the stock has risen," Moreland says. "It's just a tremendous confirmation of the long-term prospects for this company."

Edward Ching, an analyst with investment bank Rodman & Renshaw, says Smith & Wesson is likely to benefit from expanding sales to law enforcement and government customers. The company, formed in 1852, sells revolvers and pistols, as well as other security products such as handcuffs.

Last month Ching initiated coverage of the revolver company with a Market Outperform rating and a $7 price target. (The stock closed Monday at $5.05.) Winning business from the growing security market could give the stock a lift, Ching says.

At Hibbett, President Brian Priddy has recently bought more than 6,000 shares of the company, which sells gear for sports such as football, soccer and baseball.

Gary Smith, Hibbett's chief financial officer, says Priddy may have completed his recent transactions to take advantage of a dip in the stock's price.

Priddy became Hibbett's president in August. Previously, Mickey Newsome, Hibbett's chairman and chief executive officer, was president as well. CFO Smith says Priddy's appointment is related to succession planning.

Last month Hibbett officials announced that Hurricane Katrina affected 50 to 60 of the company's 508 stores–causing the company to close three stores. One of them is expected to reopen in coming weeks.

[HenryTo]

Yahoo did not take into account the most recent 3-for-2 stock split at HIBB:

http://finance.yahoo.com/q/bc?s=HIBB

Correct chart is as follows:

http://stockcharts.com/gallery/?hibb

Always use two independent sources when you are looking at stock market data - and also throw in a bit of common sense!