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Another stock that insiders are jumping into here is
Dresser-Rand Group(DRC), a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power, military and other industries worldwide. Insiders are buying this stock into modest strength, since shares are up 5% so far in 2013.
Dresser-Rand Group has a market cap of $4.49 billion and an enterprise value of $5.32 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 25.20 and a forward price-to-earnings of 13.34. Its estimated growth rate for this year is 43%, and for next year it's pegged at 32.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $122.80 million and its total debt is $1.05 billion.
The CEO just
bought 17,680 shares, or about $1 million worth of stock, at $57.02 per share.
From a technical perspective, DRC is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending modestly for the last month, with shares moving higher from its low of $55.45 to its intraday high of $59.50 a share. During that uptrend, shares of DRC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has just started to push shares of DRC back above its 50-day moving average of $59.30 a share.
If you're in the bull camp on DRC, then look for long-biased as long as it's trending above its 50-day at $59.30 a share with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 528,130 shares as bullish. If this stock can maintain that trend, then DRC will set up to re-test or possibly take out its next major overhead resistance levels at $62.85 to $63.40.
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