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YOUR FRIENDS' ACTIVITY

    Snatch This Deal Even Lower Than Executive Vice President Magill Did

    There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on September 29, Ennis Inc's Executive Vice President, Michael D. Magill, invested $19,950.00 into 1,500 shares of EBF, for a cost per share of $13.30. Bargain hunters tend to pay particular attention to insider buys like this one, because 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.

    Click here to find out which 9 other dividend bargains you can buy cheaper than insiders, at DividendChannel.com »

    In trading on Thursday, bargain hunters could buy shares of Ennis Inc (NYSE: EBF) and achieve a cost basis even cheaper than Magill, with shares changing hands as low as $13.28 per share. It should be noted that Magill has collected $0.15/share in dividends since the time of their purchase, so they are currently up 1.0% on their purchase from a total return basis. Ennis Inc shares are currently trading off about 1.9% on the day. The chart below shows the one year performance of EBF shares, versus its 200 day moving average:

    Looking at the chart above, EBF's low point in its 52 week range is $12.08 per share, with $20.25 as the 52 week high point — that compares with a last trade of $13.38. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

    Purchased Insider Title Shares Price/Share Value
    08/17/2011 Michael J. Schaefer Director 1,000 $14.90 $14,900.00
    09/29/2011 Michael D. Magill Executive Vice President 1,500 $13.30 $19,950.00
    09/29/2011 Richard L. Travis Jr. Vice President-Finance and CFO 1,000 $13.45 $13,450.00

    EBF operates in the Publishing & Printing sector, among companies like Valassis Communications, Inc. (NYSE: VCI) which is off about 1% today, and Meredith Corp. (NYSE: MDP) trading lower by about 0.8%. Below is a three month price history chart comparing the stock performance of EBF, versus VCI and MDP.


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