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A software and programming player whose insiders are snapping up a large amount of stock is
Vocus(VOCS). This company is a provider of cloud-based software for public relations management. Insiders are buying this stock into some big-time weakness since shares are off by 28% so far in 2012.
Vocus has a market cap of $301 million and an enterprise value of $282 million. This stock trades at a reasonable valuation, with a forward price-to-earnings of 23.64. Its estimated growth rate for this year is -51.9%, and for next year it's pegged at 71.8%. This is a cash-rich company, since the total cash position on its balance sheet is $25.83 million and its total debt is just $1.79 million.
The CEO and chairman of the board just
bought 60,000 shares, or $959,000 worth of stock, at $15.99 per share. The vice president and CFO also just
bought 15,000 shares, or about $239,000 worth of stock, at $15.99 per share.
From a technical perspective, VOCS is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock gapped down big in February from around $22 to $13 a share on monster volume. Since that major gap-down, this stock has found some buying interest at around $12 a share and it's recently spiked higher towards its current price of $15.84 a share.
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If you're a bullish on VOCS, I would look for long-biased trades if this stock can manage to trigger a near-term breakout above some overhead resistance at $16.42 with high-volume. Look for volume on that move that's near or well above its three-month average action of 512,148 shares. If we get that action soon, look for VOCS to fill some of that gap and trend back towards its 200-day moving average of $19.08 a share.
I would simply avoid VOCS or look for short-biased trades if it fails to trigger that breakout, and then drops below some near-term support at $15.59 with heavy volume. This stock could trend back towards $14 or even its 50-day moving average of $13.39 a share if it resumes its downtrend again.