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 Love Right Now

Stocks in this article: IMAX GEVA DECK PAY HSON

VeriFone Systems

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

Get Adobe Flash player

Another stock that insiders are finding attractive here is business equipment player VeriFone Systems (PAY), which is engaged in the secure electronic payment solutions. It provides solutions, and services for the financial, retail, hospitality, petroleum, transportation, government and health care vertical markets. Insiders are finding some deep value here, since this stock is down by over 33% in the last three months.

VeriFone Systems has a market cap of $3.84 billion and an enterprise value of $5.13 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 16.7 and a forward price-to-earnings of 10.96. Its estimated growth rate for this year is 38.5%, and for next year it's pegged at 22.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $366.40 million, and its total debt is a whopping $1.61 billion.

The CEO just bought 155,000 shares, or around $5.03 million worth of stock, at $32.50 per share.

>>5 Rocket Stocks to Buy After Friday's Bounce

From a technical perspective, PAY is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock got hammered back in April, with shares plunging from a high of $55.89 to a recent low of $30.10 a share. During that massive drop, shares of PAY were constantly making lower highs and lower lows, which is bearish technical price action. The stock also flashed a number of warning signs to longs with large gap downs on heavy volume. That said, the stock has started to find some buying interest near $30 to $32 a share, and it's now making higher lows and higher highs.

If you're in the bull camp on PAY, I would look for long-biased trades if this stock can manage to trigger a near-term breakout trade above some overhead resistance levels at $36.78 to its 50-day moving average of $36.81 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 3.6 million shares. If we get that breakout soon, then PAY could start to fill a recent gap down that started near $44 a share. Some key levels to watch for are $40 a share which is near the low of the gap down day, and its 200-day moving average of $42.25 a share. If those levels get taken out with volume, then PAY could re-visit some more resistance at $47.82 a share.

On the flipside, I would avoid PAY or look for short-biased trades if it fails to trigger that breakout soon, and then drops below some major near-term support at $34 a share with heavy volume. If we get that action, then PAY could head back towards $32 to $30 a share. Any future move below its 52-week low of $30.10 a share should be consider bearish price action, since most stocks that print new 52-week lows continue to do so for some time.

5 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 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

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