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.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV