This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Are Jumping Into

Stocks in this article: BAC KMI MCP TPX DTG

Bank of America

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

A global banking giant that insiders are loading up on here is Banks of America (BAC), which provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the U.S. and internationally. Insiders are buying this stock into some major strength, with shares up 45% so far in 2012.

Bank of America has a market cap of $87.4 billion and an enterprise value of $145.98 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 8.03. Its estimated growth rate for this next quarter is -71.4%, and for next year it's pegged at 71.2%. This is far from a cash-rich company, since the total cash position on its balance sheet is $643.88 billion and its total debt is $701.83 billion. After you back out the cash, Bank of America has a total of $57.95 billion in total debt on its books.

A director just bought 482,794 shares, or around $3.55 million worth of stock, at $7.36 per share.

>>5 Big Financial Stocks to Buy in June

From a technical perspective, BAC is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock just started to trigger a near-term breakout since shares have moved above some overhead resistance at $7.90, and above its 50-day moving average of $7.78 a share. This move is pushing BAC within range of triggering another near-term breakout trade.

If you're bullish on BAC, then I would look for long-biased trades once this stock breaks out above some near-term overhead resistance at $8.39 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 223 million shares. If we get that action soon, then look for BAC to re-test and possibly take out its next significant overhead resistance levels at $9.17 to $10.09 a share. Keep in mind, that traders can also buy BAC and anticipate the breakout as long as it's trending above its 50-day with strong volume.

I would simply avoid BAC or look for short-biased trades if it fails to trigger that breakout, and then drops back below its 50-day moving average of $7.78 a share with high volume. A high-volume move below that level would setup BAC to re-test and possibly take out its 200-day moving average of $7.17 a share.

Bank of America, which shows up on a list of 5 Bank Stocks Wilting Under the Summer Sun, was also featured recently in " 5 Breakout Stocks to Buy on This Bounce."

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs