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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.