Premium Post: A Double Dipper Special
An insider purchase by the CFO of a 104 year old company caught my attention a couple of weeks ago and it was interesting to see it also show up in our Double Dipper list. As described in our Stocks Buybacks and the Double Dipper post last year, the Double Dipper is a list of companies that are buying back their shares while their insiders are independently buying stock on the open market for their own portfolios. We are only including management insider purchases and are excluding purchases by directors and 10% owners. The Double Dipper list has grown in recent weeks and currently has 14 companies for you to explore. Allison Transmission (ALSN) was spun out of General Motors (GM) in 2007 to the Carlyle group, which took it public in 2012. The company manufactuers automatic transmissions for commercial and defense vehicles. One would expect an auto parts company to sport middling margins but that is not the case with Allison. In a testament to management effectiveness, current EBITDA and net margins are inline with mature software companies like Oracle (ORCL) and Microsoft (MSFT) and even better than Apple’s (AAPL) margins. The icing on the cake is the current valuation,...
Only plus or premium subscribers can access this post. Subscribe today.
