>>5 Stocks Under $10 Set to Soar
One recreational products player that insiders are loading up on here is
(JAKK - Get Report)
, a producer and marketer of children's toys and other consumer products. Insiders are buying this stock into weakness, since shares are off by 20% during the last six months.
Jakks Pacific has a market cap of $239 million and an enterprise value of $205 million. This stock trades at a reasonable valuation, with a forward price-to-earnings of 15.88. Its estimated growth rate for this year is 248.7%, and for next year it's pegged at 19%. This is barley a cash-rich company, since the total cash position on its balance sheet is $189.54 million and its total debt is $165.63 million.
>>5 Hated Earnings Stocks That Deserve Your Love
A beneficial owner just
bought 858,580 shares, or about $8.94 million worth of stock, at $10.30 to $10.52 per share.
From a technical perspective, JAKK is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently formed a double-bottom chart pattern at $10 a share. Shares of JAKK are bouncing strongly off that $10 low and quickly moving within range of triggering a near-term breakout trade.
If you're bullish on JAKK, then I would look for long-biased trades as long as this stock is trending above $10.50 and then once it breaks out above some near-term overhead resistance levels at $11.56 to its 50-day at $11.57 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 129,377 shares. If that breakout triggers soon, then JAKK will set up to re-test or possibly take out its next major overhead resistance levels at $12.25 to $13 a share.
U.S. Auto Parts Network
Another stock that insiders are jumping into here is
U.S. Auto Parts Network
(PRTS - Get Report)
, a distributor of aftermarket auto parts and accessories. Insiders are buying this stock into big time weakness, since shares are off by 60% during the last six months.
U.S. Auto Parts Network has a market cap of $34 million and an enterprise value of $48 million. This stock trades at a cheap valuation, with a price-to-sales of 0.11 and a price-to-book of 1.20. Its estimated growth rate for this year is 58.1%, and for the next quarter it's pegged at 16.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.14 million and its total debt is $16.36 million