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5 Stocks Insiders Are Scooping Up

Resolute Forest Products

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One more stock with some decent insider buying is Resolute Forest Products ( RFP), which provides a range of products, including newsprint, commercial printing papers, market pulp and wood products. Insiders are buying this stock into notable strength, since shares are up 21% so far in 2013.

Resolute Forest Products has a market cap of $1.5 billion and an enterprise value of $1.7 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 15.15. Its estimated growth rate for this year is 0%, and for next year it's pegged at 30.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $263 million and its total debt is $534 million.

A beneficial owner just bought 3,380,000 shares, or about $48.16 million worth of stock, at $14.25 per share.

From a technical perspective, RFP is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently put in a double bottom chart pattern at $13.92 to $13.98 a share, and then the stock subsequently soared back above its 50-day and broke out above some key near-term overhead resistance levels at $14.76 to $15.73 a share. That move is quickly pushing shares of RFP within range of triggering another major breakout trade.

If you're bullish on RFP, then look for long-biased trades as long as this stock is trending above its 50-day at $14.97 or above $14 and then once it breaks out above some key overhead resistance levels at $17.54 to $18.20 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 439,516 shares. If that breakout triggers soon, then RFP will set up to re-test or possibly take out its next major overhead resistance levels at $20 to $22 a share, or even $25 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Madison, Wis.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including and You can follow Pedone on Twitter at or @zerosum24.

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ADNC $4.63 0.00%
HBAN $10.83 0.00%
HLF $43.17 0.00%
JPM $59.55 0.00%
RFP $16.58 0.00%


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S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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