September 12, 2008

Interactive Intelligence: Cheap Growth

The Fool has an article today on one of their Rule Breakers picks, Interactive Intelligence. They note that the CEO bought 40,000 shares one week ago. But, that hasn't been the only insider transactions occurring lately. The Vice President of Business Development of Business Development bought 4,600 shares on August 7. The CFO and CEO purchased over 128,000 shares between the two of them from July 31 to August 1.

Why are top officers in the company buying? As pointed out in the MF article, Interactive Intelligence sports a five year projected earnings growth of 28.3% and a PEG ratio of .62. Its current P/E is slightly under 13 compared to 29 for the industry.

This company is an emerging leader in a niche market that still has plenty of growth ahead for it. It appears that Mr. Market has turned this growth story into a value play. Long investors may want to jump on for the ride.

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