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Insiders are doing some notable buying in
Sinclair Broadcast Group(SBGI - Get Report), a diversified television broadcasting company, which owns or provides certain programming, operating or sales services to the television stations. This stock has done next to nothing so far in 2012, with shares up just 1.5%.
Sinclair Broadcast Group has a market cap of $925 million and an enterprise value of $2.12 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 12.11 and with a forward price-to-earnings of 10.59. Its estimated growth rate for this year is 52.6%, and for next year it's pegged at -27%. This is far from a cash-rich company, since the total cash position on its balance sheet is $12.97 million and its total debt is $1.21 billion.
A director and beneficial owner just
bought 85,000 shares, or $984,000 worth of stock, at $11.58 per share.
>>13 Small-Caps Crushing Analysts' Estimates
From a technical perspective, SBGI is currently trading above its 200-day moving average and right below its 50-day moving average, which is neutral trendwise. This stock had been uptrending strong for the past six months, soaring from around $6.50 to its recent high of $13.19 a share. That said, shares of SBGI have now entered a short-term downtrend off that high of $13.19. Since hitting that high, the stock has started to slide lower back below its 50-day making lower highs and lower lows.
If you're a bullish on SBGI, then I would wait for this short-term downtrend to cease before buying any shares. One way to identify that is to look for a high-volume move back above its 50-day at $12 and above some near-term resistance at $12.18 a share. Look for volume on a move above those levels that registers close to or above its three-month average action of 422,585 shares. If that moves doesn't happen soon, then you can look for long entry points off previous support levels at $11.31 or near $10 a share.