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
TheStreet Open House

5 Stocks With Big Insider Buying

Stocks in this article: VICLGLUUSHLDSNTACOMV

Comverge

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

Get Adobe Flash player

In the electronic instrument and controls complex, insiders are buying up some stock in Comverge (COMV), a provider of intelligent energy management. This stock is off to a strong start in 2011, with shares up over 12%.

Comverge has a market cap of $35.4 million and an enterprise value of $36.4 million. This stock trades at a price-to-sales of 0.25 and a price-to-book of 1.12. Its estimated growth rate for this year is 47.2%, and for next year it's pegged at 59.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $25.5 million and its total debt is $27 million.

A beneficial owner just bought 550,100 shares, or about $707,000 worth of stock, at $1.23 to $1.40 per share.

From a technical standpoint, COMV is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock dropped from its October high of $1.98 to a recent low of $1.03 a share. Since hitting that low, the stock has rebounded sharply to its current price of $1.42 a share. As this stock has uptrended to its current price it has been making higher highs and higher lows, which is bullish price action.

If you're bullish on COMV, I would look to buy the next big breakout, which will trigger when this stock takes out $1.48 to $1.49 with volume. Look for volume that registers near or above its three-month average action of 145,410 shares. I would simply use a mental stop that's just below its 50-day moving average of $1.35 in case the breakout fails. That's also a great stop to use if you buy off weakness and anticipate the breakout.

To see more stocks with notable insider buying, including Cracker Barrel Old Country Store (CBRL), Vitesse Semiconductor (VTSS) and Sunrise Senior Living (SRZ), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 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!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

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