6 Oversold Stocks With Insider Buying

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Includes: ACW, ALB, ALIM, COCO, JMBA, LGF
by: Rougemont
A major market correction has pushed many stocks to 52-week lows, and many insiders are taking advantage of this opportunity. The amount of insider buying has surged in the last couple of weeks. Here are six such stocks.
Corinthian Colleges (NASDAQ:COCO) shares are trading at $1.94. Corinthian operates private education schools. Earnings estimates indicate a profit of 12 cents per share for 2011 and a profit of 16 cents for 2012. These shares have traded in a range between $1.57 to $7.35 in the last 52 weeks. The 50-day moving average is $3.44 and the 200-day moving average is $4.32. The private education stocks have been volatile and under pressure from new regulations, so I would be careful with these stocks. One director recently bought over 10,000 shares. You can see the insider buying here.
Jamba Juice (NASDAQ:JMBA) shares are trading at $1.71. Jamba is a maker and retailer of smoothies and other food products. Earnings estimates indicate a loss of 15 cents per share for 2011 and a profit of 4 cents for 2012. These shares have traded in a range between $1.54 to $2.77 in the last 52 weeks. The 50-day moving average is $1.99 and the 200-day moving average is $2.18. One director recently bought 28,000 shares. Unless Jamba can improve profitability, this stock is likely to remain a disappointment for shareholders.
Accuride Corp. (NYSE:ACW) is trading around $7.78. Accuride is a manufacturer of commercial vehicle parts. The 50-day moving average is $10.41 and the 200-day moving average is $13.03. These shares have traded in a range between $6.80 to $16.34 in the last 52 weeks. Multiple insiders have been buying substantial amounts of stock, over 30,000 shares in the past few weeks.
Alimera Sciences (NASDAQ:ALIM) is trading around $6.86. Alimera is a biotechnology company based in Georgia. These shares have traded in a range between $6.40 to $12.70 in the last 52 weeks. The 50-day moving average is $7.96 and the 200-day moving average is $8.67. ALIM is estimated to lose about 75 cents per share in 2011 and move to a profit of about 19 cents for 2012. This company has a proposed treatment for diabetic macular edema called Iluvien. This treatment is currently under review by the U.S. FDA and with seven European health authorities. Alimera also has other key products to treat macular degeneration in the pipeline. One officer recently bought 3,000 shares.
Lions Gate Entertainment (NYSE:LGF) is trading around $7.01. Lions Gate is a motion picture company based in California. These shares have traded in a range between $5.69 to $7.84 in the last 52 weeks. The 50-day moving average is $6.94 and the 200-day moving average is $6.52. LGF is estimated to earn 32 cents per share this year and 44 cents for next year. Carl Icahn has been selling but one major owner (MHR Fund Management) is buying millions of dollars worth of this stock.
Ablemarle Corp (NYSE:ALB) shares are trading at $47.64. Ablemarle is a specialty chemicals company and is based in Louisiana. These shares have a relative strength index of about 36 which indicates the shares are oversold. These shares have traded in a range between $40.99 to $71.79 in the last 52 weeks. The 50-day moving average is $60.93 and the 200-day moving average is $60.02. Earnings estimates for ALB are just over $4.64 per share in 2011 and $4.81 for 2012. Two officers recently bought over $200,000 worth of ALB.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.