>>5 Stocks Setting Up to Break Out
One energy player that insiders are buying up a large amount of stock in here is
), a natural gas and oil exploration and production company. Insiders are buying this stock into strength, since shares are up 27% so far in 2013.
Chesapeake Energy has a market cap of $14 billion and an enterprise value of $28 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 10.56. Its estimated growth rate for this year is 141%, and for next year it's pegged at 36%. This is not a cash-rich company, since the total cash position on its balance sheet is $33 million and its total debt is a whopping $13.63 billion. This stock sports a dividend yield of 1.7%.
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A director just
bought 450,000 shares, or about $9.4 million worth of stock, at $20.89 per share.
From a technical perspective, CHK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has just started to breakout above some near-term overhead resistance at $20.96 a share. That move is quickly pushing shares of CHK within range of triggering another major breakout trade.
If you're bullish on CHK, then I would look for long-biased trades as long as this stock is trending above $20.96 or above its 50-day at $19.98 and then once it breaks out above its 52-week high at $22.97 a share with high volume. Look for a sustained move or close above $22.97 with volume that hits near or above its three-month average action of 11.83 million shares. If we get that breakout soon, then CHK will set up to re-test or possibly take out its next major overhead resistance levels at $25.61 to $29 a share.
Another stock that insiders are jumping into here is
), which explores, develops and produces natural gas, crude oil and natural gas liquids. Insiders are buying this stock into modest strength, since shares are up 8% so far in 2013.
Apache has a market cap of $33 billion and an enterprise value of $44 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 18.02 and a forward price-to-earnings of 8.83. Its estimated growth rate for this year is -8.4%, and for next year it's pegged at 10.3%. This is not a cash-rich company, since the total cash position on its balance sheet is $248 million and its total debt is a whopping $12.48 billion. This stock sports a dividend yield of 1%.