This Day On The Street
Continue to site
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

5 Stocks With Big Insider Buying

Newcastle Investment

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

Get Adobe Flash player

One real estate investment and finance player that insiders are loading up on here is Newcastle Investment (NCT), which invests in, and actively manages, a portfolio of real estate securities, loans, excess mortgage servicing rights and other real estate related assets. Insiders are buying up shares in this name into some major strength, since the stock is up over 60% so far in 2012.

Newcastle Investment has a market cap of $926 million and an enterprise value of 44.27 billion. This stock trades at an extremely cheap valuation, with a trailing price-to-earnings of 3.18 and a forward price-to-earnings of 4.97. Its estimated growth rate for this year is -47.6%, and for next year it's pegged at -7.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $158.26 million and its total debt is a whopping $3.35 billion. This stock sports a large dividend yield of 10.8%.

A director just bought 300,000 shares, or around $2.01 million worth of stock, at $6.70 per share. The secretary also just bought 150,000 shares, or around $1 million worth of stock, at $6.70 per share. It looks like both of these purchases were part of a spot secondary offering of 22 million shares on July 26.

>>7 Stocks for a Housing Rebound

From a technical perspective, NCT is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past six months, with shares trending higher from $5.02 to its recent high of $7.50 a share. During that uptrend, shares of NCT have mostly been making higher lows and higher highs, which is bullish technical price action. That move has now pushed NCT within range of triggering a major breakout trade.

If you're bullish on NCT, then I would look for long-biased trades once this stock manages to clear some overhead resistance levels at $7.41 to $7.89 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3,173,240 shares. If we get that action soon, then NCT has a great chance of trading up towards $10 a share.

One could buy this stock off any weakness and simply use a stop just below its 50-day moving average of $6.78 a share. Or you can buy off strength once it clears $7.41 to $7.89 a share with heavy volume, and simply use a stop just below $7.41, or down toward $7 a share if you want to give it more room.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DOLE $0.00 0.00%
PNK $27.52 0.00%
NCT $3.20 0.00%
QSII $13.64 0.00%
T $36.47 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs