Thursday, 6 June 2013

HHC: David Weinreb buys for first time in the open market

A Form 4 was filed two days ago after HHC's CEO, David Weinreb, purchased ~$1 million of stock in the open market (10,000 shares @ $99.56).  This is the first time since the spin-off in Nov. 2010 that he bought shares, notwithstanding the $15 million in 7-year warrants that he bought when first joining.

One must ask: why now after the huge price spike? I realize that it is difficult for CEO's to buy in the open market, what with the blackout periods and all. But a simple two year chart will show that the price has been far below $100 for the vast majority of HHC's life as a public company.  Has something changed fundamentally in the past few weeks that has further brightened his outlook on the company's future?

I attach great significance to insider buying on the open market; it is one of the "very, very nice to haves" on my investment checklist.  If the person who knows most about the company is buying more shares (with his disposable income) at 150% than what I got in at, I would say it is pretty good validation of my belief that there is still healthy upside in this stock.


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