Spark Networks

Another stock player that insiders are warming up to here is Spark Networks (LOV), which provides online personals services in the U.S. and internationally. Insiders are buying this stock into notable weakness, since shares are off by 14% over the last six months.

Spark Networks has a market cap of $140 million and an enterprise value of $117 million. This stock trades at a fair valuation, with a price-to-sales of 2.05 and a price-to-book of 7.76. Its estimated growth rate for this year is 25%, and for next year it's pegged at 48.1%. This is a cash-rich company, since the total cash position on its balance sheet is $17.24 million and its total debt is zero.

A beneficial owner just bought 73,588 shares, or about $415,000 worth of stock, at $5.65 per share.

From a technical perspective, LOV is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last month and change, with shares moving lower from its high of $6.56 to its recent low of $5.53 a share. During that downtrend, shares of LOV have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of LOV have now started to bounce off that $5.53 low and it's starting to move within range of triggering a near-term breakout trade.

If you're in the bull camp on LOV, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $5.53 to $5.30 and then once it breaks out above its 50-day moving average of $5.96 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 188,243 shares. If that breakout hits soon, then LOV will set up to re-test or possibly take out its next major overhead resistance levels at $6.50 to $7.30 a share.

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