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Another name that insiders are loading up on is independent oil and gas player
Endeavour International(END). Insiders are buying this stock into some solid strength since shares are up over 33% so far in 2012.
Endeavour International has a market cap of $436 million and an enterprise value of $779 million. This stock trades at an extremely cheap valuation, with a forward price-to-earnings of 3. Its estimated growth rate for this year is 256%, and for next year it's pegged at 76.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $106.04 million and its total debt is $467.38 million. After you back out the cash, Endeavour has $361.34 million in debt on its books.
A beneficial owner just
bought 106,514 shares, or $1.29 million worth of stock, at $12.09 per share.
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From a technical perspective, END is currently trading right below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has found some solid buying support for the past month and change each time it's traded below $11 a share. That support zone is creating a solid base for this stock to potentially launch off of and move significantly higher.
If you like the look of END here, then I would look for long-biased trades once this stock breaks back above its 50-day moving average of $11.81 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 565,745 shares. If we get that action soon, I would then add to any long positions once END takes out some near-term overhead resistance at $12.38 to $13.48 a share with high-volume. A sustained high-volume move and close over $12.38 to $13.48 a share should set this stock up for a big run back towards $14 to $16.43.
I would simply avoid any long trades in END if the stock fails to move and close back above its 50-day at $11.81, and then drops below some near-term support at $10.94 to $10.77 a share with high-volume. A
high-volume drop back below those levels will invalidate the base and set this stock up to possibly fail at its 200-day moving average of $9.95 a share.