5 Stocks Insiders Are Scooping Up
Fuel Systems Solutions
One stock with big insider is Fuel Systems Solutions (FSYS), which engages in the design, manufacture, and supply of alternative fuel components and systems for use in the transportation, industrial and power generation markets primarily in North America, Europe, Asia, the Pacific Rim and Latin America. Insiders are showing supreme confidence here buying into big time strength, with stock up over 66% so far in 2012.
Fuel Systems Solutions has a market cap of $549 million and an enterprise value of $457 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 158 and a forward price-to-earnings of 30. Its estimated growth rate for this year is -87.4%, and for next year it's pegged at 196.7%. This is a cash-rich company, since the total cash position on its balance sheet is $94.55 million and its total debt is $11.33 million.
A beneficial owner just bought 375,500 shares, or $9.91 million worth of stock, at $23.56 to $24.09 per share. From a technical perspective, FSYS is currently trading above both its 50-day and 200-day moving averages, which is bullish. This has been on a tear over the last few months, with shares soaring from a low of $15.35 to its current price of $27.50 a share. That huge move higher has now pushed FSYS into overbought territory since its current relative strength index (RSI) reading is now 80.70. That said, the stock also just broke out on huge volume above $24.14 a share. If you're bullish on FSYS, I would only look for short-term long-biased trades as long as this stock is trending above some near-term overhead resistance at $27.65 a share. Even though this stock is overbought, it has a good chance of tagging its next major overhead resistance level of $30 a share, as long as it can continue to trend above $27.65. For a better longer-term entry point, I would look for long biased trades off a significant pullback that works off the current overbought condition. Follow @stockpickrSelect the service that is right for you!
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