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A stock in the computer storage devices complex that insiders are active in here is
Quantum(QTM - Get Report), which specializes in backup, recovery and archive solutions. It provides a comprehensive range of disk, tape and software solutions. Insiders are buying this stock into modest strength, since shares are up 7% so far in 2013.
Quantum has a market cap of $321 million and an enterprise value of $500 million. This stock trades at a premium valuation, with a forward price-to-earnings of 44.50. Its estimated growth rate for this year is -141.7%, and for next year it's pegged at 160%. This is not a cash-rich company, since the total cash position on its balance sheet is $51.34 million and its total debt is $205 million.
A beneficial owner just
bought 1 million shares, or about $1.22 million worth of stock, at $1.22 per share.
From a technical perspective, QTM is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways for the last four months, with shares moving between $1.18 on the downside and $1.47 on the upside. Shares of QTM have just started to bounce off its 50-day at $1.31 a share and are quickly moving within range of triggering a near-term breakout trade above the upper end of its recent sideways trading pattern.
If you're in the bull camp on QTM, then look for long-biased as long as this stock is trending above its 50-day at $1.31 and then once it breaks out above some near-term overhead resistance levels at $1.46 to $1.47 a share and its 200-day at $1.48 a share with high volume. Look for a sustained move or close above those breakout levels with volume that hits near or above its three-month average action of 1.68 million shares. If that breakout triggers, then QTM will set up to re-test or possibly take out its next major overhead resistance levels at $1.70 to $1.77 a share. Any high-volume move above those levels will then put $2 to $2.20 into range for shares of QTM.