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TheStreet Open House

5 Stocks Insiders are Stashing

Stocks in this article: AEGRJNPRLEXPHLF

If you're in the bull camp on EXP, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $55.05 to $56.40 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 700,173 shares. If that breakout triggers soon, then EXP will enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65 a share.

Herbalife

The last name to consider with some big insider buying is Herbalife (HLF). This is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products. Insiders are buying this stock into some modest weakness, since shares are off by 8.5% so far in 2012.

Herbalife has a market cap of $5 billion and an enterprise value of $5.21 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.04 and a forward price-to-earnings of 10.24. Its estimated growth rate for this year is 21.8%, and for next year it's pegged at 13.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $321.72 million and its total debt is $503.44 million.

The chief operating officer just bought 45,516 shares, or $1.99 million worth of stock, at $43.89 per share.

From a technical perspective, HLF is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month and change, with shares dropping from a high of $53.60 to a recent low of $42.18 a share. During that move, shares of HLF were mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of HLF have recently started to rebound sharply off that $42.18 low and the stock is now moving within range of triggering a near-term breakout trade.

If you're bullish on HLF, then I would look for long-biased once this stock manages to break out above some near-term overhead at its 50-day of $48.85 and above some more overhead resistance at $48.90 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 1,543,200 shares. If that breakout triggers soon, then HLF will set up to re-test or possibly take out its next major overhead resistance levels at $53.19 to its 200-day at $53.77 a share.

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