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One specialty retail player whose insiders are snapping up a decent amount of stock is
Winamrk(WINA - Get Report), a franchisor of four value-oriented retail store concepts that buys, sells trades and consigns merchandise. Insiders are buying shares into some modest weakness since the stock is off by around 7% so far in 2012.
Winmark has a market cap of $269 million and an enterprise value of $258 million. This stock trades at a fair valuation, with a trailing price-to-earnings 19.76. This is a cash-rich company, since the total cash position on its balance sheet is $10.06 million and its total debt is just $20,800.
The chairman of the board and CEO just
bought 6,000 shares, or $329,000 worth of stock, at $54.85 per share.
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From a technical perspective, WINA is currently trading below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock formed a double top chart pattern back in February at $67.48 to $67.42 a share. After forming that top, the stock has plunged towards its current price of $53.15 a share.
If you're a bull on WINA, I would only consider long-biased trades if this stock can manage to trade above Wednesday's high of $54.41 with high-volume. Look for volume on that move that's near or well above its three-month average action of 15,656 shares. If we get that action, then look for this stock to make a run at $56 to $58 a share in the near-term. I would only look for a more extended up move if WINA gets back above its 50-day moving average of $60.22 and above some near-term resistance at $60.90 with volume.
I would avoid long trades in WINA all together if it takes out Wednesday's low of $52.57 with volume. If WINA takes out that low, then it sets the stock up to potentially fail at its 200-day moving average of $49.99. Keep in mind that the trend right now is down for WINA, so this stock is vulnerable for more downside if can't hold onto its recent gains.