Insiders Sensing a Bottom at Stellent

There's money to be made when there's blood in the streets. That investing maxim would seem to apply to e-content vendor Stellent(STEL Quote), which has taken a beating but looks poised for an eventual rebound.

Shares of Stellent fell from $30 at the start of the year to below $5, before a recent rebound to $6.30. The stock was initially pressured after its third-quarter (ended in December) results caused investors to question the company's balance sheet. The stock took another hit when its fourth-quarter (March) results showed a sharp revenue drop.

But the fourth quarter also had a series of positive elements that should pave the way for a resurgence. In effect, management cleared the decks by writing off assets, stepping up collections to reduce bloated receivables, and lowering forward guidance down to levels that should allow the company to return to its past of estimate-topping quarters.

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