One electric utilities player that insiders are loading up on here is Dynegy (DYN). This company's primary business is the production and sale of electric energy, capacity and ancillary services from the fleet of 16 operating power plants in six states totaling approximately 11,600 megawatts of generating capacity. Insiders are buying this stock into some extreme weakness since shares are off by over 75% so far in 2012.
Dynegy has a market cap of $74 million and an enterprise value of $1.5. This stock trades at a reasonable valuation, with a price-to-sales of 0.06 and a price-to-book of 0.07. Its estimated growth rate for this year is 55.8%, and for next year it's pegged at 2.9%. This is far from a cash-rich company, since the total cash position on its balance sheet is $411 million and its total debt is a whopping $1.84 billion.A beneficial owner just bought 636,982 shares, or around $366,000 worth of stock, at 49 cents to 58 cents per share. >>25 Energy Stocks to Consider From a technical perspective, DYN is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently bottomed at 30 cents after falling hard from over $1.54 a share. After hitting that bottom, shares of DYN have started to make mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed DYN within range of triggering a major breakout trade. If you're bullish on DYN, then I would look for long-biased trades once this stock breaks out above some near-term overhead resistance at 64 cents to 74 cents with high-volume. Look for volume on that move that hits near or above its three-month average action of 1,828,310 shares. If we get that action soon, then DYN could easily spike back towards $1.00 to $1.20 a share. I would simply avoid DYN if this stock drops back below its 50-day at 49 cents or some more major support at 45 cents per share with heavy volume. As of the most recently reported quarter, Dynegy was one of Carl Icahn's holdings.
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