One final stock that has seen some decent insider buying is Kingold Jewelry ( KGJI), which designs, manufactures and sells gold jewelry and Chinese ornaments in the People's Republic of China. Insiders are clearly finding some value here; the stock has dropped over 60% so far in 2011. This company has a market cap of $81 million and an enterprise value of $76 million, and the stock trades at a very cheap trailing price-to-earnings of 3.79. The CEO just bought 200,000 shares, or $312,900 worth of stock, at $1.43 to $1.60 per share. These stock purchases are part of a Rule 10b5-1 plan he entered into in early June to buy up to $500,000 worth of stock and then subsequently buy an additional $1 million worth of stock. From a technical standpoint, this stock recently formed a perfect double-bottom chart pattern at $1.29 to $1.28 a share. Since hitting that bottom in late June, the stock has soared and hit a recent high of $1.70 a share. If you want to buy this stock, I would wait until you see KGJI take out its 50-day moving average of $1.67 on strong volume. Look for volume that's well above the three-month average action of 171,800 shares. I would add to any long position aggressively if you see the stock take out $1.85 and then $2.11 a share. One could also buy the stock on weakness if it moves back towards some significant support at $1.40 a share. To see more stocks with notable insider buying, including Aradigm ( ARDM), Nanosphere ( NSPH) and IVAX Diagnostics ( IVD), check out the Stocks With Big Insider Buying portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.