This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Are Loading Up On

Stocks in this article: NIHD ZIOP ALXA FGP CHTP

NII Holdings

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

Get Adobe Flash player

One stock that insiders are loading up in is NII Holdings (NIHD), which provides wireless communication services under the Nextel brand through operating companies located in selected Latin American markets, with its principal operations located in Mexico, Brazil, Argentina, Peru and Chile. This stock, which shows up on a recent list of 10 Top Morningstar M&A Stock Picks for 2012, hasn't done much in 2012 with shares down by around 3%.

NII Holdings has a market cap of $3.54 billion and an enterprise value of $5.24 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 11.68 and a forward price-to-earnings of 13.10. Its estimated growth rate for this year is -24.6%, and for next year it's pegged at 5.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $2.64 billion and its total debt is $4.46 billion.

The president just bought 37,126 shares, or $714,000 worth of stock, at $18.96 to $19.34 per share.

From a technical standpoint, NIHD is currently trading below both its 50-day and 200-day moving averages, which is neutral bearish. This stock has been stuck in a nasty downtrend for the past few months and change, with shares dropping from over $35 to a recent low of $18.82 a share. Since hitting that low, the stock has started to find some buying support with shares now trading at just over $20 a share.

If you're bullish on NIHD, I would look to buy some shares once it moves back above its 50-day moving average of $21.32 with volume. Look for volume that's near or well above its three-month average action of 3.04 million shares. If we get that action, then look to add to any long positions once NIHD breaks out above some near-term resistance at $22.19 a share with volume. I would simply use a mental stop on any long positions just below the 50-day if you buy off strength, or right around $18.82 a share if you get long off weakness.

NIHD also shows up on a list of 5 Telecom Picks for 2012.

2 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!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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