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A key insider has also done some big buying in Owens-Illinois ( OI), a manufacturer of glass containers with 81 glass manufacturing plants in 21 countries. It produces glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice and pharmaceuticals. This is another situation in which insiders are finding some deep value; the stock is off by over 42% so far in 2011.

This company has a market cap of $2.91 billion and an enterprise value of $6.99 billion. The stock trades at a reasonable valuation, with a forward price-to-earnings ratio of 6.15. Owen's estimated growth rate for the next quarter is 20%, and for next year it's pegged at 23.6%. This is far from a cash-rich company -- its total cash position on the books is $260 million, and its total debt is over $4.3 billion.

The CEO and chairman of the board just bought 121,200 shares, or about $2 million worth of stock, at $16.56 per share.

From a technical standpoint, this stock recently collapsed from its May high of $32.32 a share to a recent low of $16 a share. The stock is now also trading below both its 50-day and 200-day moving averages, which is bearish. That said, the stock has started to form a basing pattern during the last few months between $16 and $19.60 a share. This pattern could be signaling that the downtrend is over and the stock has strong buying support at current levels.

If you're looking to buy this stock, I would get long off any weakness below $19 a share. I would simply use a stop just below $16 a share in case the stock isn't done trending down. I would add to any long position once the stock trades above its 50-day moving average of $20.98 a share on above-average volume.

The bottom line is that this name is attractive at current levels because it's only a few points off that $16 support level. It might not be a bad idea to follow the CEO into the stock here since it's also been so beaten down in the last few months.

To see more stocks with notable insider buying, including Hyatt Hotels ( H), Bluefly ( BFLY) and Synta Pharmaceuticals ( SNTA), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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