One stock that insiders are loading up on here is Biolase (BIOL), which develops, manufactures and markets lasers in dentistry and medicine in the U.S. and internationally. Insiders are buying this stock into big time strength, since shares are up sharply by 79% over the last three months.
Biolase has a market cap of $99 million and an enterprise value of $100 million. This stock trades at a reasonable valuation, with a price-to-sales of 1.67 and a price-to-book of 10.74. Its estimated growth rate for this year is -230%, and for next year it's pegged at 69.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $4.15 million and its total debt is $5.53 million.
A beneficial owner just bought 2,035,033 shares, or about $5.23 million worth of stock, at $2.53 to $2.59 per share.
From a technical perspective, BIOL is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $2.21 to its recent high of $2.94 a share. During that uptrend, shares of BIOL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BIOL within range of triggering a big breakout trade.
If you're bullish on BIOL, then I would look for long-biased trades as long as this stock is trending above its 50-day at $2.49 and then once breaks out above some near-term overhead resistance levels at $2.94 to $3.28 a share and then above $3.55 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 487,464 shares. If that breakout hits soon, then BIOL will set up to re-test or possibly take out its next major overhead resistance levels at $4.11 to $4.50 a share.