This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Flashing Insider-Buying Alerts

Ecolab

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One stock with a huge amount of insider buying is Ecolab (ECL). This company develops and markets products and services for the hospitality, foodservice, health care and industrial markets. Ecolab provides cleaning and sanitizing products and programs, as well as pest elimination, maintenance and repair services primarily to customers in the food and beverage processing, hospitality, healthcare, government and education, retail, textile care, commercial facilities management and vehicle wash sectors. This stock hasn't done much so far in 2011 with shares up by only around 5%.

This company has a market cap of $12.3 billion and an enterprise value of $13.2 billion. This stock currently trades at a reasonable valuation, since their trailing price-to-earnings is 23 and their forward price-to-earnings is 18. Eclolab's estimated growth rate for this year is 13.9% and for next year it's pegged at 13.8%. This is not a cash-rich company since they have $1.11 billion in total debt and just $163 million in total cash.

Beneficial owner Bill Gates, through his investment firm Cascade Investment, just bought 3.9 million shares, or $189.6 million worth of stock, between $48.44 and $50.21 per share. This recent purchase by Gates now makes him the largest shareholder in Ecolab, since it added significantly to his previous holdings. Cascade Investment now holds 4.4 million shares of Ecolab worth around $1.1 billion.

From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a perfect double bottom chart pattern at around $44 a share and since then has bounced all the way up to its current price of just over $53 a share. A lot of that bounce was due to Gate's buying which started on August 23.

If you're looking to buy this stock, I would not chase this off the Gates news. The stock has just made a big run, so it's better strategy to wait for a significant pullback and look to add shares on weakness. Look for a pullback toward the 200-day moving average of $50.64 as a potential entry point.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs