TriQuint Semiconductor

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In the semiconductor complex, insiders are snapping up shares of TriQuint Semiconductor ( TQNT), a supplier of modules, components and foundry services for communications applications. This is yet another name that insiders are buying after a big decline; it's off by around 55% so far in 2011.

TriQuint Semiconductor has a market cap of $826.15 million and an enterprise value of $653.99 million. This stock trades at a reasonable valuation; its trailing price-to-earnings is 9.94, and its forward price-to-earnings is 13.81. This company's estimated growth rate for this year is -39.8%, and for next year it's pegged at -28%. This is a cash-rich company, with a total cash position on its balance sheet of $147.22 million and total debt of zero.

A director just bought 100,000 shares, or $431,200 worth of stock, at $4.31 per share. This same director also recently bought 14,333 shares, or $68,211 worth of stock, at $4.76 per share.

From a technical standpoint, TQNT is currently trading below both its 50-day and 200-day moving average, which is bearish. This stock was hit hard by the sellers recently from its October high of $7.76 to a recent low of $3.97 a share. Since that low, the stock has rebounded sharply to its current price of near $5 a share. Market players should now watch TQNT for a breakout trade if a few overhead resistance levels can be cleared with volume.

If you're bullish on TQNT, you should look to be a buyer on any weakness and anticipate a breakout above $4.92 and $5.42 (its 50-day) a share on high volume. Look for volume on any sustained move and close above those levels that hits close to or above its three-month average action of 6,744,620 shares. I would simply use a mental stop at around $4.50 in case the stock isn't ready to breakout just yet.

To see more stocks with notable insider buying, including KKR ( KKR), Assured Guaranty ( AGO) and Shutterfly ( SFLY), 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 and maintains the website, 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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