Another name that insiders are snapping up a decent amount of stock in is computer services player Carbonite (CARB), which focuses on the development and marketing of personal computer backup software that enables users to backup, access, and restores data files online. Insiders are loading up on this stock into some into some significant weakness since shares are off by 30% so far in 2012.
Carbonite has a market cap of $196 million and an enterprise value of $122 million. This stock trades at a reasonable valuation, with a price-to-sales of 2.88 and a price-to-book of 9.59. Its estimated growth rate for this year is 6%, and for next year it's pegged at 38%. This is a cash-rich company, since the total cash position on its balance sheet is $68.10 million and its total debt is zero.A beneficial owner just bought 100,000 shares, or around $780,000 worth of stock, at $7.80 per share. >>5 Stocks to Buy Instead of Dell From a technical perspective, CARB is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for most of 2012, with shares dropping from over $11 to a recent low of $6.74 a share. During that move lower, shares of CARB have mostly made lower highs and lower lows, which is bearish technical price action. That said, the stock has found some buying interest of late near $7 to $7.38 a share. If you're in the bull camp on CARB, I would look only look for long-biased trades if this stock can manage to trigger a breakout above some near-term overhead resistance at $8.08, and then above its 50-day moving average of $8.91 a share with high-volume. Look for volume on that move that's near or above its three-month average action of 192,806 shares. If we get that action, then I would add to any long position once CARB takes out some more overhead resistance at $9.17 a share. Target a run back towards its 200-day moving average of $11.01 a share. I would simply avoid CARB or look for short-biased trades if it fails to trigger that breakout, and then drops below some near-term support at $7.38 to $6.74 a share with heavy volume. If those key support levels are taken out with volume, then CARB will enter new all-time low territory and likely continue to head lower.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV