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A small-cap stock whose insiders have done some decent buying is
Powin(PWON), an original equipment manufacturer, coordinates the manufacture and supports the distribution of various products and equipment in the U.S. and internationally. It looks like insiders see a bargain here since this stock is off by over 32% so far in 2012.
Powin has a market cap of $76 million and an enterprise value of $64 million. This stock trades at a rich valuation, with a price-to-sales of 1.44 and a price-to-book of 9.32. This is barely a cash-rich company, since the total cash position on its balance sheet is $2.94 million and its total debt is $475,000.
The CEO and chairman of the board just
bought 673,900 shares, or $270,000 worth of stock, at 40 to 42 cents per share.
>>10 Stock Picks From a Small-Cap Specialist
From a technical perspective, PWON is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending big-time from its 52-week high of $2.30 to its recent
52-week low of 30 cents per share. This stock skyrocketed 39% on Wednesday to close at 57 cents per share.
If you're bullish on PWON, I would only look for long-biased trades off of high-volume intraday strength since this is an over-the-counter stock bulletin board stock. OTC stocks are pure momentum plays, since once the buyers leave the price usually collapses due to lack of liquidity. I would like to play the next high-volume move over 60 cents intraday for a possible run back towards $1 a share. Look for volume that's above Wednesday action of 33,750 shares.