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Another name in the technology complex that insiders are snapping up shares in is
Quality Systems(QSII - Get Report). This company develops and markets healthcare information systems in the U.S. Insiders are sniffing out some deep value here, since this stock has plunged by over 53% so far in 2012.
Quality Systems has a market cap of $1.01 billion and an enterprise value of $824 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 13.98 and a forward price-to-earnings of 12.01. Its estimated growth rate for this year is -3.1%, and for next year it's pegged at 14.5%. This is a cash-rich company, since the total cash position on its balance sheet is $134.90 million, and its total debt is zero. This stock sports a dividend yield of 4.4%.
A director just
bought 10,000 shares, or about $160,000 worth of stock, at $16.06 per share. Another director also just
bought 10,000 shares, or about $160,000 worth of stock, at $16.02 per share.>>10 Top-Rated Tech Stocks That Pay Big Dividends
From a technical perspective, QSII is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been stuck in a nasty downtrend for the past six months, with shares plunging from over $44 to its recent low of $15.04 a share. During that downtrend, shares of QSII have been consistently making lower highs and lower lows, which is bearish technical price action. This stock also just gapped down huge from around $24 to $15.04 a share on massive volume. Since that plunge, shares of QSII have held that $15.04 bottom.
If you're in the bull camp on QSII, then I would look for long-biased trades as long as QSII is trending above $16.98 a share with strong upside volume flows. I would consider any upside volume day that registers near or above 983,175 shares as bullish. I would also consider looking for long trades once QSII takes out its gap-down day low of $19 a share with volume. A move over $19 could spark a big pop since QSII will then move into that gap.
I would simply avoid this stock entirely or look for short-biased trades if it moves below $15.94 to $15.04 with high volume. A high-volume move below those levels would setup QSII to enter new 52-week low territory, which is bearish technical price action.