Insider buying can be a great sign that a stock is a real value or that it is going higher in the near future. Insiders tend to know their companies better than outsiders or analysts, so when they put their own money in share purchases, it can be very meaningful. When you see insider buying at depressed prices, it often means the shares are oversold and offer great long term value. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are some low-priced stocks trading around $8 or less with strong insider buying:
GMX Resources, Inc. (GMXR) is trading at $1.68. GMXR is a oil and gas company that holds interests in some high potential areas, including the Niobrara Formation and the Haynesville Formation. These shares have a 52 week range of $1.15 and $6.48. The 50-day moving average is $1.92, and the 200-day moving average is $3.60, so the stock is trading well below recent support levels. Book value is stated at $3.41. This stock looks undervalued and like a good buy on dips. One director recently bought 33,000 shares,and an officer bought 10,000 shares.
Iridium Communications, Inc., (IRDM) shares are trading at $7.55. This company provides voice and data communications via satellite and is based in Maryland. The 50-day moving average is about $6.59 and the 200-day moving average is about $7.72. These shares have traded in a 52 week range between $5.50 and $10.04. Earnings estimates are about 52 cents for 2011 and 65 cents for 2012. This gives IRDM shares a PE ratio of only about 10 times earnings. Iridium is trading at a very reasonable valuation and is a leader in satellite based communications. The book value is $9.45 per share. Insiders have bought over 80,000 shares in December alone.
Rare Element Resources, Ltd. (REE) shares are trading at $4.89. REE is based in Canada and is a rare earth minerals company. The shares have traded in a range between $3.86 to $17.92 in the past 52 weeks. The 50-day moving average is $5.65 and the 200-day moving average is $9.53. Earnings estimates for REE are for a loss of 8 cents in 2011, and 10 cents in 2012. The rare earth stocks have dropped sharply in the past few months and might have rebound potential. A director recently bought about 5,000 shares.
Federal Signal (FSS) is trading around $4.16. Federal Signal makes a variety of products for vehicles such sirens, aerial platforms, etc and it is based in Illinois. These shares have traded in a range between $3.50 to $7.79 in the last 52 weeks. The 50-day moving average is $4.22 and the 200-day moving average is $5.47. FSS is estimated to earn about 11 cents per share in 2011 and 40 cents in 2012. FSS pays a 24 cent dividend, which is equivalent to a 5.8% yield. This pays you to hold the stock while you wait for a higher share price. A few directors and officers boughtover 80,000 shares in December.
Opko Health Inc., (OPK) is trading around $4.82. Opko is a specialty drug and vaccine company, based in Florida. These shares have traded in a range between $3.15 to $5.85 in the last 52 weeks. The 50-day moving average is $5.03 and the 200-day moving average is $4.19. OPK is estimated to post a loss in 2011, as it works to develop its product line. This stock is getting noticed lately, as Jim Cramer recently called it a buy and an analyst at Jefferies recently did the same and gave OPK shares a $8 price target. This stock looks like a good buy on any dips. The CEO has an excellent track record in this industry and he has been making regular purchases of stock worth many thousands of dollars. In just December alone, the CEO bought 75,000 shares. You can see the repeated insider buying here: finance.yahoo.com/q/it
Novavax, Inc. (NVAX) is trading around $1.43. NVAX is a biotechnology company, based in Maryland. These shares have traded in a range between $1.13 to $3.50 in the last 52 weeks. The 50-day moving average is $1.50 and the 200-day moving average is $1.95. NVAX is estimated to lose about 21 cents per share in 2011 and post a loss of about 18 cents per share for 2012. In the product development pipeline, Novavax has candidates for infectious diseases such as pandemic influenza, seasonal influenza, shingles, and more. A director recently bought 200,000 shares.
The data is sourced from Yahoo Finance and Insidercow.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GMXR, NVAX over the next 72 hours.
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