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A small-cap stock whose insiders have done some decent buying is Powin ( PWON), an original equipment manufacturer, coordinates the manufacture and supports the distribution of various products and equipment in the U.S. and internationally. It looks like insiders see a bargain here since this stock is off by over 32% so far in 2012.

Powin has a market cap of $76 million and an enterprise value of $64 million. This stock trades at a rich valuation, with a price-to-sales of 1.44 and a price-to-book of 9.32. This is barely a cash-rich company, since the total cash position on its balance sheet is $2.94 million and its total debt is $475,000.

The CEO and chairman of the board just bought 673,900 shares, or $270,000 worth of stock, at 40 to 42 cents per share.

>>10 Stock Picks From a Small-Cap Specialist

From a technical perspective, PWON is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending big-time from its 52-week high of $2.30 to its recent 52-week low of 30 cents per share. This stock skyrocketed 39% on Wednesday to close at 57 cents per share.

If you're bullish on PWON, I would only look for long-biased trades off of high-volume intraday strength since this is an over-the-counter stock bulletin board stock. OTC stocks are pure momentum plays, since once the buyers leave the price usually collapses due to lack of liquidity. I would like to play the next high-volume move over 60 cents intraday for a possible run back towards $1 a share. Look for volume that's above Wednesday action of 33,750 shares.

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