We'd Hesitate Mimicking This Insider

We've noticed a substantial insider buy over at Macquarie Infrastructure (MIC): CEO James Hooke directly purchased more than 13,000 shares last week, according to an SEC filing. The size of this particular transaction, and the fact that it was put through by its chief executive, both certainly got our attention -- and there are other reasons to track insider purchases in general. Stocks with insider buying narrowly outperform the market, and we believe these actions reveal execs' particularly high confidence in a company, given their willingness to even further expose themselves to company-specific risk.

Macquarie Infrastructure, which has $2.5 billion in market capitalization, performs airport fueling and hangar services, among other things. Last year revenue rose 5%, followed by sales climbs in both 2011 and 2010. A special charge dampened operating income last year, but if we strip that out, we get a 16% jump and even more significant growth in pretax income, thanks to much lower interest expenses. The quarter also saw burgeoning cash flow from operations -- and while some of the sources of the cash appear that they may be one-time items, we think it's safe to say Macquarie's fundamentals strengthened in 2012....327 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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