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Insiders are buying up a lot of stock in
Dell(DELL), a technology company offering mobility products, desktop personal computers, software and peripherals, servers and networking products, storage and services. Insiders are buying into strength since shares of Dell are up 19% in 2012.
Dell has a market cap of $30 billion and an enterprise value of $25 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.26 and with a forward price-to-earnings of 7.98. Its estimated growth rate for this year is -0.90%, and for next year it's pegged at 3.3%. This is a cash-rich company, since the total cash position on its balance sheet is $14.82 billion and its total debt is $9.25 billion. After you back out the debt, Dell has $5.57 billion of cash on its balance sheet.
The president just
bought 100,000 shares, or $1.74 million worth of stock, at $17.10 to $17.40 per share.
From a technical perspective, Dell is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past month and change, running up from $14.50 to a recent high of $18.36 a share. After hitting that high, the stock gapped down recently to a low of $16.86, but it has since then stabilized over $17 a share.
If you're bullish on Dell, I would look for long-biased trades once this stock breaks out above $17.50 to $18.36 with volume. Look for volume on a move above those levels that's near or above its three-month average action of 17.7 million shares.
If that breakout doesn't trigger soon, then you can look for long entry points off a pullback toward some previous support zones at $16 to $15.50 a share.
Dell, one of the
top holdings at David Einhorn's Greenlight Capital, shows up on a list of
10 Top Value Stocks With Big Gains in 2012.