This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 With Big Insider Buying

Stocks in this article: SVNT UBP XTXI LNCR LNCE

Crosstex Energy

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

Get Adobe Flash player

A natural gas player whose insiders have snapped up a large amount of stock is Crosstex Energy (XTXI), which is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids through its subsidiaries. What's interesting here is that insiders are paying up to buy a huge amount of stock, since shares are up over 63% so far in 2011.

This company has a market cap of $684 million and an enterprise value of $1.45 billion. This is far from a cheap stock, with a forward price-to-earnings of 290. Crosstex's estimated growth rate for this year is 75%, and for next year it's pegged at 183%. This is not a cash-rich company, with a total cash position on its balance sheet of $7 million and total debt of a whopping $789.88 million.

A beneficial owner just bought about 1.8 million shares, or about $26.4 million worth of stock, at $14.89 per share.

From a technical standpoint, the stock is currently trading above its 50-day and its 200-day moving averages, which is bullish. Crosstex recently made a monster run from its August lows of $8.33 a share to its current price of just over $14.50 a share. I

f you want to buy this stock, I would look to buy it once it breaks out above $15.25 to $15.30 a share on big volume. Those levels have marked a double top for now unless the stock can reverse course and get back above that overhead resistance. I would look for a breakout on volume that's tracking in at close to or above its three-month average action of 984,745 shares. One could also buy this stock off any significant weakness with a stop just below the 50-day moving aveage of $12.13 a share.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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