Children's Place Retail
Another stock that insiders are falling in love with is Children's Place Retail (PLCE), a pure-play children's specialty apparel retailer in North America. Insiders are buying this stock into some decent strength here, since shares are up over 7% so far in 2012.
Children's Place Retail has a market cap of $1.39 billion and an enterprise value of $1.20 billion. This stock trades at reasonable valuation, with a trailing price-to-earnings of 22.37 and a forward price-to-earnings of 15.01. Its estimated growth rate for this year is 11.6%, and for next year it's pegged at 16.9%. This is a cash-rich company, since the total cash position on its balance sheet is $158.62 million and its total debt is zero.The chairman of the board just bought 13,350 shares, or around $748,000 worth of stock, at $56.03 per share. From a technical perspective, PLCE is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently gapped up large from over $52 a share to around $56 a share with heavy volume. That gap also pushed PLCE into breakout territory, since the stock took out some overhead resistance levels at $52.16 to $53.60 a share. That gap and continued momentum has now pushed PLCE within range of triggering a major breakout trade. If you're bullish on PLCE, then I would look for long-biased trades once this stock manages to trigger a breakout trade above some past overhead resistance levels at $57.55 to $57.63 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 458,656 shares. If that breakout triggers soon, then PLCE should easily trend north of $60 a share. One could also anticipate this breakout and buy the stock off any weakness as long as it holds near-term support at $55 to $54 a share. On the flipside, I would avoid this stock for now or look for short-biased trades if it fails to trigger that breakout soon, and then drops back below some key near-term support levels at $55 to $54 a share with heavy volume. A move below $54 will setup PLCE to re-fill that previous gap and possibly take this stock down towards $52 to $50 a share. To see more stocks with notable insider buying like Sirius XM Radio (SIRI), Zipcar (ZIP) and Imax (IMAX), check out the Stocks With Big Insider Buying portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
Twitter and become a fan on Facebook.
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