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TheStreet Open House

5 Stocks Insiders Love Right Now

Stocks in this article: FIGPZGVRAVRNMASTI

Fortress Investment Group

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Insiders have been doing some sizeable buying in Fortress Investment Group (FIG), a global investment manager. Insiders are buying into some slight strength here since the stock is up around 10% so far in 2012.

Fortress Investment Group has a market cap of $712 million and an enterprise value of $645 million. This stock trades at an extremely cheap valuation, with a forward price-to-earnings of 5.95. Its estimated growth rate for this year is 2.2%, and for next year it's pegged at 34%. This is a cash-rich company, since the total cash position on its balance sheet is $333.17 million and its total debt is 261.25 million. After you back out the debt, Fortress has $71.62 million in cash on its books. This stock also has a dividend yield of 5.5%.

A director just bought 400,000 shares, or $1.39 million worth of stock, at $3.48 per share.

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From a technical perspective, FIG is currently trading below both its 50-day moving average and right above its 200-day moving average, which is neutral trendwise. This stock has been making mostly higher lows the past few months, but it's failed to make higher highs consistently. That pattern pretty puts the stock in no-man's-land until it can manage to get back above its 50-day and start making higher highs.

If you're a bull on FIG, I would only look for long biased trades once this stock breaks back above its 50-day moving average of $3.84 with strong volume. Look for volume on that move that's near or well above its three-month average action of 1.2 million shares. If we get that move soon, I would then add to any long position once it takes out some near-term overhead resistance at $4.12 to $4.38 with volume. I would simply avoid any long trades in FIG if it fails to hold a trend above its 50-day with strong upside volume flows.

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