5 Stocks Insiders Love Right Now

Comverge

Another name that insiders are loading up on here is intelligent energy management provider Comverge (COMV). Insiders are snapping up shares in COMV into some big-time strength since the stock is up over 40% so far in 2012.

Comverge has a market cap of $44 million and an enterprise value of $48 million. This stock trades at a rich valuation, with a forward price-to-earnings of 58.67. Its estimated growth rate for this year is 32.7%, and for next year it's pegged at 108.60%. This is not a cash-rich company, since the total cash position on its balance sheet is $23.64 million and its total debt is $26.25 million.

A beneficial owner just bought 430,100 shares, or $744,000 worth of stock, at $1.73 per share.

>>7 Hot Stocks on Traders' Radars

From a technical perspective, COMV is currently trading right below its 200-day moving average and above its 50-day moving average, which is neutral trendwise. This stock ran up big since the start of 2012 from $1.11 to a recent high of $1.99 a share. During that run, the stock made mostly higher lows and higher highs, which is bullish technical price action. That said, COMV just ran into overhead resistance near $1.95 to $1.99 a share, and it has broken back below its 200-day moving average.

If you're a bull on COMV, then I would look for long-biased trades once it breaks back above its 200-day moving average of $1.82 with strong volume. Look for volume on that move that's near or well above its three-month average action of 249,760 shares. If we get that action soon, then I would add to any long positions once CMOV breaks out above $1.95 to $1.99 a share with high-volume. Target a run up to its next major overhead resistance level at $2.50 if that breakout triggers soon.

I would simply avoid any long trades in COMV if the stock fails to get back above its 200-day and take out $1.95 to $1.99 a share with high-volume. If you buy this stock off weakness, then keep in mind that the nearest major support level is at $1.70 to $1.59 (its50-day) a share. Any high-volume moves below those levels should be considered very bearish in the short-term.

« First ‹ Previous 1 2 3 4 5 6 Next › Last »