Insider buying is a good sign, but not a perfect sign. FSZ continues to pay its 13% dividend (not sure why it hasn't cut yet) and is very cheap at 7X earnings. Its stock has leverage to lower rates and capital markets, both of which could be positive influences this year. But, earnings are still expected to decline this year (based on consensus) and the payout ratio remains very high, near 100%. There is not much room for error here, and its small size adds risk as well. Assets fell last year despite decent markets. We would still view it in a negative light, with concern on the dividend. But we like it a bit more than before, only as the market backdrop has improved in the past few months. We could be talked into a HOLD here now, but it needs to still be considered very risky.
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