Fuel Systems

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An alternative energy stock that insiders are loading up on here is Fuel Systems ( FSYS), which designs, manufactures and supplies alternative fuel components and systems for use in the transportation, industrial and power generation industries on a global basis. Insiders are buying this stock into decent strength, since shares are up 15.9% during the last three months.

Fuel Systems has a market cap of $328 million and an enterprise value of $238 million. This stock trades at a reasonable valuation, with a forward price-to-earnings of 27.76. Its estimated growth rate for this year is 64.3%, and for next year it's pegged at 28.3%. This is a cash-rich company, since the total cash position on its balance sheet is $75.68 million and its total debt is just $1.02 million

A beneficial owner just bought 100,000 shares, or about $1.58 million worth of stock, at $15.67 to $16.10 per share.

From a technical perspective, FSYS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $13.38 to its intraday high of $16.58 a share. During that uptrend, shares of FSYS have been consistently making higher low and higher highs, which is bullish technical price action. That move has started to push shares of FSYS into breakout territory above $16.50 a share.

If you're bullish on FSYS, then look for long-biased trades as long as it's trending above its 200-day at $15.91 and then once it breaks out above some near-term overhead resistance levels at $16.50 to $16.58 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 170,674 shares. If that breakout triggers soon, then FSYS will set up to re-test or possibly take out its next major overhead resistance levels at $17.50 to $19 a share.

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