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Another small-cap name that insiders are loading up on here is
American Spectrum Realty(AQQ), a full-service real estate corporation, which owns, manages and operates income-producing properties. This stock has virtually done nothing so far in 2012 with shares slightly down on the year.
American Spectrum Realty has a market cap of $16.3 million and an enterprise value of $400 million. This stock trades at a cheap valuation, with a trailing price-to-earnings of 3.65. This is far from a cash-rich company, since the total cash position on its balance sheet is $473,000 and its total debt is $384.02 million.
The CEO and president just
bought 214,340 shares, or $919,500 worth of stock, at $4.29 per share.
>>10 Small-Cap Stocks Safe for Skittish Investors
From a technical perspective, AQQ is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending since the start of the year, with shares dropping from $7.60 to a recent low of $3.71 a share. After tagging that low, the stock has started to rebound, and it's even broken out above some near-term overhead resistance at $4.65.
If you're a bull on AQQ, then I would look for long-biased trades once it breaks back above its 50-day moving average of $5.38 a share with high-volume. Look for volume on that move that registers near or well above its three-month average action of 3,311 shares. If we get that action soon, AQQ could trade into the mid-$6s which is a big area of overhead resistance from earlier this year.
Keep in mind that it's also possible to play AQQ from the long side as long as it's trending above that recent breakout level of $4.65 a share. I would simply use a stop near some support at $4.27 in case this fails to get back above its 50-day soon.