Insiders are also warming up to Summer Infant (SUMR), a designer, marketer, and distributor of juvenile health, safety and wellness products, which are sold to North American and U.K. retailers. Insiders are sniffing out some deep value here since this stock is down a whopping 54% so far in 2012.
Summer Infant has a market cap of $56.98 million and an enterprise value of $121.97 million. This stock trades at a cheap valuation, with a trailing price-to-earnings of 15.21 and a forward price-to-earnings of 5.35. Its estimated growth rate for this year is -2.2%, and for next year it's pegged at 36.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.71 million and its total debt is $69.36 million.A beneficial owner just bought 465,752 shares, or about $1.3 million worth of stock, at $2.75 to $2.76 per share. >>4 Stocks Poised to Break Out From a technical perspective, SUMR is currently trading below both its 50-day and 200-day moving averages, which is bearish. The sellers have absolutely destroyed this stock during the last six months, with shares plunging from a high of $6.33 to a recent low of $2.71 a share. During that downtrend, shares of SUMR have consistently made lower highs and lower lows, which is bearish technical price action. That said, this stock has started to find some buying interest right off that $2.71 low, and now it's moving within range of a near-term breakout trade. If you're bullish on SUMR, then I would look for long-biased trades once this stock triggers a near-term break out above $3.52, and then above its 50-day moving average of $3.89 with high-volume. In fact, traders can also look for long setups as long as SUMR is trending above $3.14 with strong volume. I would consider volume that registers near or above its three-month average action of 136,536 shares as bullish. If we get that action soon, then SUMR could re-fill a previous gap-down and trade up towards $4.75 to $5 a share. On the flipside, I would avoid SUMR if its trending below $3.14 and below Tuesday's low of $2.89 a share with heavy volume. If this stock starts to trend below those levels with volume, then it could easily setup to take out that recent low of $2.71 a share. I want to play this name into strength, so it's important it stays above $3.14 and challenges those breakout levels soon.
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 Plus 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