By David Sterman of StreetAuthority
NEW YORK ( StreetAuthority) -- As part of your ongoing investment research, it pays to periodically check in with company insiders. When they are buying or selling a company's stock, you'll get a first-hand suggestion on whether shares are a bargain or possibly ripe for a fall.
Decisions on when to sell a stock can be influenced by other factors such as estate planning or wealth diversification. But insider buying is a clear unabashed signal -- "our stock is too cheap," insiders seemingly implore. Last month, insiders clued us in to two stocks that are undervalued, at least in their opinion. Let's take a closer look.
Lincoln EducationalThe for-profit education sector had a bruising year in 2010, thanks to disappointing graduation rates, lax lending standards and sharply increased government oversight. The net result: Several major players may run into distress in 2011 as government-supported student loans will be harder to come by. The industry pressure may turn out to be a blessing for the industry's stronger operators, such as Lincoln Educational (LINC). The N.J.-based firm focuses on trade-based degrees in fields such as health care, IT and auto repair. Chastened by a rising tide of unpaid student loans, Lincoln has been tightening its standards in recent quarters, and is now working to ensure that all student loan applicants will be in a strong position to repay loans. That means fewer students will be enrolled in 2011 leading revenue to fall this year. Yet management notes that the applicant base continues to rise at a fast pace, and it expect sales and profits to rebound in 2012.
- Moving the retailer into new product categories that offer higher margins;
- Sharply boosting the number of private label goods for sale;
- Expanding shelf space and store hours.
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