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Another service revenue management player that insiders are jumping into here is
Servicesource International (
SREV), which helps hardware, software, health care and life sciences companies derive from their customers more revenue from maintenance, support and subscription agreements. Insiders are buying this stock into strength, since shares are up by 37% so far in 2013.
Servicesource has a market cap of $614 million and an enterprise value of $477 million. This stock trades at a fair valuation, with a forward price-to-earnings of 57.36. Its estimated growth rate for this year is -10%, and for next year it's pegged at 55.6%. This is a cash-rich company, since the total cash position on its balance sheet is $117.70 million and its total debt is just $868,000.
>>5 Stocks Poised to Pop on Bullish Earnings
A director just
bought 202,741 shares, or $1.41 million worth of stock, at $6.96 per share. The same director also just
bought 115,000 shares, or about $783,000 worth of stock, at $6.81 per share.
From a technical perspective, SREV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strongly for the last month, with shares moving higher from its low of $5.36 to its recent high of $8.32 a share. During that uptrend, shares of SREV have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SREV within range of triggering a near-term breakout trade.
If you're in the bull camp on SREV, then look for long-biased as long as this stock is trending above its 200-day moving average at $7.09, and then once it breaks out above some near-term overhead resistance at $8.32 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 562,584 shares. If that breakout triggers soon, then SREV will set up to re-test or possibly take out its next major overhead resistance levels $9.15 to $10.77 a share, or even $12 a share.