Trans World Entertainment

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Insiders have also been scooping up shares of Trans World Entertainment ( TWMC), which operates retail stores and three e-commerce sites and is a specialty retailer of entertainment software, including music, video and video games and related products in the U.S. Insiders are paying up here to own shares of Trans World; the stock is up over 30% so far in 2011.

This company has a market cap of $69.83 million and an enterprise value of $53.23 million. The stock trades at a price-to-sales of 0.12 and a price-to-book of 0.46. Its current cash flow is $15.66 million, and its levered cash flow is $18.22 million. This is a cash-rich company, with a total cash position of $22.49 million and total debt of $6.21 million. After you back out the debt, Trans World has $16.28 million in cash on the books.

The CEO and chairman of the board just bought 75,000 shares, or $155,985 worth of stock, at $2.07 to $2.14 per share. This same CEO also bought 200,000 shares, or $410,000 worth of stock, at $2.05 per share back in late August.

>>5 Stocks Set to Soar on Earnings

From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. The stock has also just started to break out above some past overhead resistance levels at $2.14 to $2.18 a share on strong volume. If this breakout is the real deal, then this stock could be setting up to trend significantly higher from current levels.

If you're bullish on this stock, I would look to get long off any notable weakness and simply use a mental stop at around $2.10 or $2 a share. If the stock does start to ramp up big from here, and you get long, I would then add aggressively once this stock takes out $2.70 a share with volume. Look for volume that's tracking in well above its three-month average action of 8,829 shares.

If you liked this article you might like

Insider Trading Alert - NSPH, SIGI And CFFI Traded By Insiders

Insider Trading Alert - NSP, CTXS And NSPH Traded By Insiders

Nanosphere (NSPH) Stock Surging as Luminex Ups Bid

Nanosphere (NSPH) Stock Skyrockets on $58 Million Luminex Deal

4 Stocks Under $10 Making Big Moves Higher