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These six companies have struggled as of late, mostly due to the downward pressure caused by the global financial crisis. However, there is a trend in the economy that looks increasingly positive. Turnarounds can be highly rewarding for investors who get in while the share prices are at or near historical lows. What makes the names below even more interesting is that these companies have reported substantial insider buying recently. The fact that insiders are buying these names could be a good sign that they see light at the end of the tunnel. All of these companies have seen insider buys which total over $100,000 in recent share purchases. Most companies report constant insider selling, so it's notable to see the heavy buying in these names. I have provided links for each stock which verifies the insider buying filed with the SEC below and provided some insight as to why a turnaround might be at hand for these companies:

Hercules Offshore (NASDAQ:HERO) is trading around $5.53. Hercules is a offshore drilling company. These shares have traded in a range between $2.05 to $6.29 in the last 52 weeks. The 50 day moving average is $4.23 and the 200 day moving average is $3.03. HERO is estimated to lose about 53 cents per share in 2011. You can see the repeated insider buying here.

Why HERO might be a turnaround: Hercules has been posting losses for several quarters. However, the company now expects to see quicker issuance for drilling permits in the Gulf of Mexico and this should improve results. Another key point is that Hercules recently purchased 20 jackup rigs from Seahawk Drilling which could lead to higher revenues. Read more about this deal here.

Headwaters, Inc. (NYSE:HW), is trading around $5.72. Headwaters is a building products company based in Utah. These shares have traded in a range between $2.63 to $6.31 in the last 52 weeks. The 50 day moving average is $5.28 and the 200 day moving average is $4.04. HW is estimated to lose about 62 cents per share in 2011. You can see the repeated insider buying here.

Why Headwaters might be a turnaround: Headwaters makes a number of products that were hard hit in the recession and the housing crisis. Their light building products line includes manufactured stone, shutters, roofing, siding and window products. They also market and manage coal combustion products. These industries are likely to benefit significantly as the economy turns up. The stock has recently move above the 50 and 200 day moving average so I would wait for a pullback to at least the $5.28 level.

Leapfrog Enterprises, Inc., (NYSE:LF) is trading around $4.27. Leapfrog makes educational toys and games and is based in California. These shares have traded in a range between $3.58 to $7.51 in the last 52 weeks. The 50 day moving average is $4.35 and the 200 day moving average is $5.04. LF is estimated to lose about 36 cents per share in 2011. The CEO purchased 50,000 shares. You can see the insider buying here.

Why Leapfrog might be a turnaround: Leapfrog has been struggling and recently warned that results would fall short due to excess inventory at some retailers, however, they appointed a new CEO named John Barbour. New management with fresh ideas can often be the first step to turning around the financial results. You can read more about the management changes here. These share were once trading over $30, so if they can improve results, there could be substantial upside from current levels.

Red Lion Hotels (NYSE:RLH), is trading around $7.93. Red Lion operates hotels and is based in Washington. These shares have traded in a range between $5.80 to $8.79 in the last 52 weeks. The 50 day moving average is $7.99 and the 200 day moving average is $7.44. RLH is estimated to lose about 10 cents per share in 2011. You can see the repeated insider buying here.

Why Red Lion might be a turnaround: Just like the entire hotel sector, Red Lion was hard hit in the economic downturn. However room rates have been rising along with occupancy rates and this combination is just what hotel operators need to prosper. Industry expert Jones, Lang LaSalle is predicting more hotels will be purchased as investors react to the improving trends in this sector. You can read more abou this here.

Huntington Bancshares (NASDAQ:HBAN), is trading around $6.69. Huntington is a regional bank based in Ohio. These shares have traded in a range between $5.04 to $7.70 in the last 52 weeks. The 50 day moving average is $7.03 and the 200 day moving average is $6.20. HBAN is estimated to earn about 52 cents per share in 2011. You can see the repeated insider buying here.

Why Huntington might be a turnaround: The financial crisis hit banks very hard, but results at Huntington are showing that this bank is poised to benefit as the economy recovers. Recently, Huntington announced that it is projecting lower loan losses and improving profits for 2011. Huntington repaid the government bailout funds in December, and it posted a better than expected 12 cent profit for the fourth quarter of 2010. Goldman Sachs recently added HBAN to it's conviction buy list for 2011 with a $9 price target. You can read about that here.

Lions Gate Entertainment (NYSE:LGF) is trading around $5.90. Lions Gate is a motion picture company based in California. These shares have traded in a range between $5.47 to $7.84 in the last 52 weeks. The 50 day moving average is $6.21 and the 200 day moving average is $6.80. LGF is estimated to lose about 58 cents per share in 2011. You can see the repeated insider buying here.

Why Lions Gate might be a turnaround: Lions Gate used to trade regularly for about $10 per share but after posting losses, these shares are trading at about half of that. However, LGF has recently reported improving financial results. The loss for the three months ended Dec. 31 totaled $6 million, or 4 cents per share, compared with a loss of $65 million, or 55 cents per share, a year earlier. Revenues increased by 23 percent to $422.9 million from $343 million a year earlier, driven mostly by increases in the home entertainment category.

The data is sourced from Yahoo Finance. 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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 Turnaround Plays With Heavy Insider Buying