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Insider buying can be a great sign that a stock is a real value or that it is going higher in the near future. 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:
American Axle (NYSE:AXL) shares are trading at $10.62. These shares have a relative strength index of about 37, which indicates the shares are nearing oversold levels. AXL is a leading manufacturer of automotive components. The 50-day moving average is about $11.83 and the 200-day moving average is about $11.66. Earnings estimates for AXL are $1.79 per share in 2011. The PE ratio is about 5. You can see the repeated insider buying here.
The stock dropped hard from around the $15 level earlier this year, down to nearly $10. This has created a buying opportunity to pick up cheap shares, and it looks like management is taking advantage of this lower price.
RAIT Financial Trust (NYSE:RAS) shares are trading at $2.07. RAIT is a real estate investment trust, based in Pennsylvania. These shares have traded in a range between $1.30 to $3.78 in the last 52 weeks. The 50-day moving average is $2.28 and the 200-day moving average is $2.21. You can see the repeated insider buying here.
The stock trades at a significant discount to the book value, which is currently stated at $8.67. The stock dropped hard in the past few weeks along with the market. This has created a buying opportunity to pick up cheap shares.
Opko Health Inc., (NYSE:OPK) is trading around $3.56. Opko is a specialty drug and vaccine company, based in Florida. These shares have traded in a range between $1.85 to $5.03 in the last 52 weeks. The 50-day moving average is $3.77 and the 200-day moving average is $3.38. OPK is estimated to post a loss in 2011. You can see the repeated insider buying here.
This company has some interesting products, like retina tracking and others relating to ophthalmology, which could have significant potential. You can learn more about its products here. Insider buying in this stock has been very significant and frequent.
Jamba Juice (NASDAQ:JMBA) shares are trading at $2.17. Jamba is a maker and retailer of smoothies and other food products. Earnings estimates indicate a loss of 11 cents per share for 2011. These shares have traded in a range between $1.60 to $2.79 in the last 52 weeks. The 50-day moving average is $2.28 and the 200-day moving average is $2.24. You can see the insider buying here.
The insider buying is too insignificant and most recently some insider have been selling. I don't see much of an opportunity in JMBA overall right now.
Best Buy (NYSE:BBY) shares are trading at $30.63. Best Buy is a leading retailer of electronics and is based in Minnesota. The 50-day moving average is $30.45 and the 200-day moving average is $35.17. Earnings estimates for BBY are about $3.31 per share in 2011 and $3.56 for 2012 so the PE ratio is only about 8. The book value is stated at $15.23. You can see the insider buying here.
A few insiders just reported buying large amounts of stock. This stock has dropped substantially in the last few months, so it appears insiders are doing some bargain hunting.
Harris & Harris Group, Inc. (NASDAQ:TINY) is trading around $5.59. Harris & Harris is a venture capital firm that focuses on nanotechnology investments. The 50-day moving average is $5.24 and the 200-day moving average is $4.81. These shares have traded in a range between $3.70 to $6.30 in the last 52 weeks. You can see the repeated insider buying here.
The CEO, CFO and other insiders have been buying stock. This stock is trading not far below the 52-week high, and I am impressed to see insiders buying near the highs. Nanotechnology is likely to provide major investment opportunities in the future and TINY is a diversified way to play it.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: 6 Newly-Reported Insider Stock Purchases