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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.