Kinder Morgan Management
One stock where insiders are doing some sizeable buying in is Kinder Morgan Management (KMR). This company operates as a pipeline transportation and energy storage company in North America. Insiders are buying into some mild strength here since shares of KMR are up 17% in 2011.Kinder Morgan Management has a market cap of $7.6 billion and an enterprise value of $7.58 billion. This stock trades at a price-to-book of 3.04 and it trades at a forward price-to-earnings of 34.13. Their estimated growth rate for this year is 26.1% and for next year it's pegged at 32.2%. A director just bought 17,500 shares, or just over $1.31 million worth of stock, at $74.92 per share. From a technical standpoint, KMR is currently trading well above both its 50-day and 200-day moving averages, which is bullish. That said, the stock is also flashing some overbought conditions since its current relative strength index reading is 86.94. Any stock that shows a reading over 70 is considered overbought, so KMR is entering extremely overbought territory. This doesn't mean that the stock can't continue to climb higher, but it does mean that caution is warranted. If you're bullish on KMR, I would consider waiting for a sizable pullback since the RSI reading is so high and the stock is extended by around 8 points from its 50-day moving average of $70.14 a share. I would look to be a buyer near $72 to $71 a share, with a mental stop just a few percentage points below it's the 50-day at $70.14.
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