If you're in the bull camp on CORT, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $1.48 to $1.60 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 387,469 shares. If that breakout triggers soon, then CORT will set up for a powerful bounce back towards $1.90 to $2.01 a share or possible even its 50-day at $2.23 a share.
The last name to consider with some notable insider buying is computer storage devices player
. This is a global provider of enterprise-class Flash solid-state drives that are designed to increase the performance of enterprise-storage systems and servers that companies use to retain and access their critical data. Insiders are buying this stock into some extreme weakness, since shares are down by 44% so far in 2012.
Stec has a market cap of $220.08 million and an enterprise value of $38.09 million. This stock trades at a reasonable valuation, with a price-to-sales of 1.17 and a price-to-book of 0.92. Its estimated growth rate for this year is -242.9%, and for next year it's pegged at -2%. This is a cash-rich company, since the total cash position on its balance sheet is $186.20 million and its total debt is zero.
A director just
bought 137,665 shares, or around $593,000 million worth of stock, at $4.07 to $4.50 per share.
From a technical perspective, STEC is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last six months, with shares plunging from over $8 to its recent low of $3.95 a share. During that downtrend, shares of STEC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of STEC have started to bounce hard off $3.95 and its moving within range of triggering a near-term breakout trade.
If you're bullish on STEC, then I would look for long-biased once this stock manages to break out above some near-term overhead resistance at $4.99 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 608,956 shares. If that breakout triggers soon, then STEC will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to its 50-day at $5.84 a share. Any move above $5.84 will then put $6 to $6.50 into focus for shares of STEC.