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One natural gas player that insiders are loading up on is
Kinder Morgan(symbol), which owns and manages a diversified portfolio of energy transportation and storage assets. Insiders are buying this stock into some modest strength, since shares are up around 7% so far in 2012.
Kinder Morgan has a market cap of $35 billion and an enterprise value of $71 billion. This stock trades at a fair valuation, with a forward price-to-earnings of 25.42. Its estimated growth rate for this year is -14.1%, and for next year it's pegged 72.2%. This is far from a cash-rich company, since the total cash position on its balance sheet is $775 million and its total debt is $36.42 billion.
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A director just
bought 600,000 shares, or about $20.85 million worth of stock, at $34.58 per share.
From a technical perspective, KMI is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last month, with shares moving between $33.80 on the downside and $36.12 on the upside. A move outside of that trading range soon will likely set up the next major trend for KMI.
If you're bullish on KMI, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $35.06 to $35.76 a share, and then once it takes out $36.12 to $36.46 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 5.6 million shares. If those levels get taken out soon, then look for KMI to re-test or possibly take out its next major overhead resistance level at $39.09 a share.