If you're looking for an energy company whose insiders are doing some buying, then take a look at Vantage Drilling (VTG), a drilling company focused on operating a fleet of drilling units. The cmpany's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells for its customers. So far this year shares are down over 9%.
Vantage Drilling has a market cap of $533 million and an enterprise value of $1.6 billion. This stock isn't cheap, trading at a forward price-to-earnings of 30. This company isn't cash-rich, either, with a whopping $1.11 billion in debt on its balance sheet and just $51.71 million in total cash.A beneficial owner just bought 979,300 shares, or $1.7 million worth of stock, at $1.71 to $1.78 per share. From a technical standpoint, this stock has dropped noticeably from its yearly high of $2.26 a share to its current price of $1.84. Shares of VTG are now just starting to trade back above both its 200-day and 50-day moving averages. If the stock can manage to close above both of those levels, then we could be entering into a short-term bullish trend change. It's also worth pointing out that VTG is still in a longer-term bullish trend since a one-year chart shows a pattern of higher lows. One way to play VTG is to take a long position on any weakness as long as the stock is trading above both of those key moving averages I mentioned above. One could then add to any long position once VTG breaks out above some near-term resistance at $1.88 a share. Add again aggressively if you see VTG trade above some major past resistance at $2.50 a share. It's worth noting that Vantage Drilling has a reasonable short interest. The current short interest as a percentage of the float for VTG stands at 5.4%. The bears have also been increasing their bets from the last reporting period by a rather large 25.6%, or by about 1.8 million shares. Aegerion Pharmaceuticals
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