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Key insiders have also been loading up on large amounts of stock in
Seacor Holdings(CKH - Get Report), which owns, operates, invests in and markets equipment in the offshore oil and gas, industrial aviation and marine transportation industries. This stock is trending lower so far in 2011, with shares off by around 10%
Seacor Holdings has a market cap of $1.96 billion and an enterprise value of $2.15 billion. The stock trades at a cheap valuation, with a trailing price-to-earnings ratio of 9.78 and a forward price-to-earnings of 12.44. Its estimated growth rate for next quarter is 11.8%, and for next year it's pegged at 90.8%. This is not a cash-rich company -- the total cash position on its balance sheet is $480.04 million, and its total debt is over $725 million.
The CEO just
bought 26,000 shares, or about $2.2 million worth of stock, at $84.40 to $86.13 per share. Just this month, another director also bought 2,300 shares, or $196,397 worth of stock, at $85.39 per share.
From a technical standpoint, this stock is currently trading below both its 50-day and 200-day
moving averages, which is bearish. This stock was hammered down big in the last few months from its high of $109.50 a share to a recent low of $80.96 a share. That said, the stock has started to base since hitting that low, at $82 to just above $90 a share. This basing chart pattern could be a launching pad for the stock's next move.
If you want to buy this stock, I would get long off any weakness that takes it close to $85 a share. If you get long near $85, I would then add to that position only once the stock trades above both its 50-day ($94.14) and 200-day ($97.37) on
above-average volume. You could also just buy strength and get long once it trades above $94.14 on strong volume.
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