Forest City Enterprises
Insiders are also doing some notable buying in Forest City Enterprises (FCE.A), which is engaged in the ownership, development, management and acquisition of commercial and residential real estate and land in 27 states and the District of Columbia. This is another example of insiders finding value in a stock; Forest City is off by around 25% so far in 2011.
Forest City has a market cap of $2.09 billion and an enterprise value of $8.53 billion. This company is currently not profitable with an operating cash flow of $335.83 million and a levered free cash flow of -$139.25 million. This is far from a cash-rich company, with a total cash position on its balance sheet of $413.91 million and total debt of $6.86 billion.The CEO and president just bought 36,923 shares, or $428,360 worth of stock, at $11.17 to $11.73 per share. From a technical standpoint, this stock is currently trading just above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This name has just started to move back above the 50-day of $12.23 on heavy volume, which is bullish. Volume Tuesday registered 2.8 million and on Wednesday it hit a whopping 4 million. Both days easily surpassed its three-month average volume of 1.48 million shares. >>Stocks Rising on Unusual Volume If you're bullish on this name, I would look to buy some shares once it trades above $12.55 a share with solid volume. I would then add to any long position once it takes out more overhead resistance levels at $13.60 to $14.35 a share with volume. Use a mental stop at around $12 a share in case this stock isn't ready to start challenging some of those past overhead resistance zones.
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