>>5 Stocks Warren Buffett Loves
One consumer products player that insiders are loading up on here is
(SPB - Get Report)
. This company has market positions in six product categories: consumer batteries, pet supplies, electric shaving & grooming, electric personal care, portable lighting & home and garden control products. Insiders are buying this stock into strength, since shares are up a whopping 60% in 2012.
Spectrum Brands has a market cap of $2.26 billion and an enterprise value of $3.78 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 48.24 and a forward price-to-earnings of 12.26. Its estimated growth rate for this year is 52.6%, and for next year it's pegged at 2.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $157.96 million and its total debt is $1.67 billion.
A beneficial owner just
bought 333,778 shares, or about $14.99 million worth of stock, at $44.94 per share.
From a technical perspective, SPB is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently formed a double top at around $48.22 to $48.36 a share, and then subsequently sold off to a low of $42.19 a share. Following that selloff, shares of SPB have started to bounce off that recent low of $42.19 a share and its moving within range of triggering a near-term breakout trade.
If you're bullish on SPB, then I would look for long-biased trades if this stock manages to break out back above its 50-day moving average of $45.53 a share with high volume. Look for a sustained move or close above $45.53 a share with volume that hits near or above its three-month average action of 279,390 shares. If that breakout triggers soon, then SPB will set up to re-test or possibly take out those double top resistance areas near $48.22 to $48.36 a share. Keep in mind that any move above $48.36 would then push SPB into new 52-week high territory, which is bullish technical price action.
Another name in the biotechnology and drugs complex that insiders are loading up on here is
(UTHR - Get Report)
. This company is focused on the development and commercialization of products to address the medical needs of patients with chronic and life-threatening conditions. Insiders are buying this stock into some modest strength, since shares are up 10% in 2012.