4 Stocks Trading Under $5 With Insider Buying

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 |  Includes: BZH, DXM, LTS, RDDC
by: Rougemont
These stocks are all trading for under $5 per share and have seen recent insider buying. Some of these companies have moved up recently, so I would wait for pullbacks in those names. I have provided links for each stock, which verifies the insider buying filed with the SEC below. Here are the stocks:
Dex One Corporation (DEXO) is trading around $2.34. Dex One provides business marketing solutions. The 50 day moving average is $3.85 and the 200 day moving average is $6.85. These shares have traded in a range between $1.61 to $23.95 in the last 52 weeks. You can see the repeated insider buying here.
What Dex One insiders and other investors might be seeing: The CEO and other insiders just reported buying large amounts of stock. Other insiders have also been buying substantial amounts of stock in the past few months. This stock has dropped substantially in the last few months so it appears insiders are doing some bargain hunting.
Reddy Ice Holdings Inc. (FRZ) is trading around $3.08. Reddy Ice provides packaged ice for sale nationwide. The 50 day moving average is $3.01 and the 200 day moving average is $2.86. These shares have traded in a range between $2.04 to $4.03 in the last 52 weeks. You can see the repeated insider buying here:
What Reddy Ice insiders and other investors might be seeing: An officer has been making repeated buys. This company recently reported improving financial results and saw sales increase by about $5 million in the quarter.
Beazer Homes (NYSE:BZH) shares are trading at $4.21. Beazer is a major home builder. The 50 day moving average is $4.31 and the 200 day moving average is $4.55. These shares have traded in a range between $3.10 to $6.23 in the last 52 weeks. You can see the repeated insider buying here:
What Beazer insiders and other investors might be seeing: I don't see the housing stocks as an investment, but it is possible to make money trading them. For this reason, I would not buy shares except for a short term trade.
Ladenburg Thalmann Financial shares are trading at $1.38. LTS is a investment brokerage company, based in Florida. These shares have traded in a range between 80 cents to $1.74 in the last 52 weeks. The 50 day moving average is $1.19 and the 200 day moving average is $1.14. Earnings estimates are not available. You can see the insider buying here:
What Ladenburg insiders and other investors might be seeing: LTS reported that fourth quarter 2010 revenues were $54.6 million, a 25% increase from revenues of $43.8 million in the fourth quarter of 2009. The company still reported a net loss of 6 cents per share for 2010, but with revenues rising, it could be possible for LTS to post a profit in the future.

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