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

Lincare Holding

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

Get Adobe Flash player

In medical equipment and supplies complex, a key insider has done some notable buying in Lincare Holding (LNCR), a provider of oxygen and other respiratory therapy services to patients in the home. This stock is down over 22% so far in 2011.

This company has a market cap of $1.9 billion and an enterprise value of $2.34 billion. The stock trades at a cheap valuation, with a trailing price-to-earnings of 10.9 and a forward price-to-earnings of 9.18. Lincare's estimated growth rate for this year is 3.7%, and for next year it's pegged at 16.5%. This is not a cash-rich company; its total cash position is $122.15 million, and its total debt is $532.79 million.

The CEO and chairman of the board just bought 25,000 shares, or $521,500 worth of stock, at $20.86 per share. Two other directors at the company also bought over $700,000 worth of stock at around $20 a share during the past two months.

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been beaten down big from its July high of $30.21 a share to a recent low of $19.65 a share. Since that huge drop, the stock has started to form a basing pattern between $19.60 and $22.50 a share. This sideways pattern could be signaling a bullish trend change for the stock.

If you're looking to buy this stock, I would be a buyer once it breaks out above the upper end of the sideways trading pattern at $22.50 and then above its 50-day moving average of $22.93 a share. Look for a move above those levels on solid volume that's tracking in close to or above its three-month average volume of 1.5 million shares. One could also buy it off weakness with a stop just below that big support at $19.65 a share.

Lincare is one of the top-yielding health services stocks.

5 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