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One stock with huge insider buying is
NuStar Energy(NS - Get Report), which is engaged in the terminalling and storage of petroleum products, the transportation of petroleum products and anhydrous ammonia, and asphalt refining and fuels marketing. Insiders are finding some value here since the stock is down over 20% in 2011.
NuStar Energy has a market cap of $3.48 billion and an enterprise value of $6 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings ratio of 17.13 and a forward price-to-earnings of 16.76. Its estimated growth rate for this year is 1.7%, and for next year it's pegged at 9.9%. This is far from a cash-rich company, since the total cash position on its balance sheet is $59.21 million and its total debt is a whopping $2.57 billion. This stock sports a hefty dividend yield of 8.1%.
A director just
bought 187,000 shares, or almost $10 million worth of stock, at $53.45 per share.
technical standpoint, NS is currently trading below both its 50-day and 200-day
moving average, which is bearish. This stock has been trending lower since it hit its November high of $58.96, and its current price is just under $54 a share. The stock also recently gapped down from $56 to $53 a share on monster volume. That said, shares of NS have a ton of previous support that sits right around $53 to $52 a share.
If you're bullish on NS, I would look to get long once it trades back above its 50-day moving average of $54.66 on high volume. Look for volume that's tracking in close to or above its three-month average action of 112,698 shares. One could also buy off weakness and get long near $53 to $52 a share, and simply use a mental stop just below $52.
If you buy off strength on a move above the 50-day, then I would use a mental stop a few percentage points below that level. Target a run back towards $56 or $58.82 (the 200-day) if we see a move back above the 50-day on solid volume.