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The last name to look at with some interesting insider buying is solar power player
SunPower(SPWR - Get Report). This is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial and utility-scale power plant customers. It looks like insiders are finding some value here since this stock is down 18% so far in 2012.
SunPower has a market cap of $602 million and an enterprise value of $945 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 10.83. Its estimated growth rate for this year is -144.4%, and for next year it's pegged at 491.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $302.14 million, and its total debt is $693.46 million.
The president just
bought 20,013 shares, or about $99,000 worth of stock, at $4.95 per share.
From a technical perspective, SPWR is currently trading below both its 50-day 200-day
moving averages, which is bearish. This stock has moved significantly lower in the past fourth months, with shares dropping from a high of $9.54 to a recent low of $4.51 a share. After hitting that low, the stock has started to find some buying interest, and it's now trading within range of a near-term breakout.
If you're bullish on SPWR, then I would look for long-biased trades once this stock breaks out above some near-term
overhead resistance at $5.19 a share with high volume. Look for volume that's close to or above its three-month average volume of 1.1 million shares. If we get that move, then I would look to add to any long positions once SPWR takes out its 50-day at $5.45 and then some more resistance at $5.67 a share with volume. Target a spike back towards its next significant overhead resistance level at $7 or possibly its 200-day moving average of $7.45 a share.
I would simply avoid SPWR or look for short-biased trades if it fails to trigger that breakout, and then drops back below that recent low of $4.51 a share with high-volume. If we get that action, then SPWR would be acting very bearish technically since it will have printed a new 52-week low.
To see more stocks with notable insider buying, including
Yelp (YELP) and
McDermott International (MDR), check out the
Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.