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Another stock that insiders are warming up to here is
Energy Transfer Equity(ETE - Get Report), which has natural gas operations that include more than 17, 500 miles of gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. This stock hasn't done much so far in 2012, with shares virtually flat on the year.
Energy Transfer Equity has a market cap of $11.32 billion and an enterprise value of $28.93 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 23.52 and a forward price-to-earnings of 16.05. Its estimated growth rate for this year is 52.2%, and for next year it's pegged at 20%. This is far from a cash-rich company, since the total cash position on its balance sheet is $293.07 million and its total debt is a whopping $17.83 billion.
A director and beneficial owner just
bought 239,975 shares, or about $9.47 million worth of stock, at $39.35 to $39.87 per share.>>5 Energy Stocks T. Boone Pickens Loves Right Now
From a technical perspective, ETE is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently hit a bottom at $34 a share, after dropping from its March high of $43.70 a share. After tapping that bottom, shares of ETE have been uptrending and making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing ETE within range of triggering a near-term breakout trade.
If you're bullish on ETE, then I would look for long-biased trades once this stock triggers a near-term break out above $41.40 to $42.49 a share high-volume. Look for volume on that move that hits near or above its three-month average volume of 1,113,730 shares. If we get that action soon, then ETE will setup to re-test and possibly take out its next significant overhead resistance levels at $43.82 to $44.51 a share.
On the flipside, I would avoid ETE if it fails to trigger that breakout, and then moves back below both its 50-day at $38.87 and its 200-day at $38.58, and then some major support at $38.24 with high-volume. A high-volume move below those levels could setup ETE to trade down towards $36 to $34 a share.