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Insider buying can be a great sign that a stock is a great 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 below $6 with strong insider buying:

Synta Pharmaceuticals, Inc. (NASDAQ:SNTA), is trading around $4.05. Synta is a biotechnology company based in California. These shares have traded in a range between $3.02 to $6.93 in the last 52 weeks. The 50-day moving average is $3.56 and the 200-day moving average is $4.53. Synta has two drug candidates in clinical trials for cancer and other drug candidates in the preclinical stage of development. Synta has a solid balance sheet and an interesting pipeline. Because of that, this stock looks like a good buy on dips. One director has purchased over 30,000 shares in the past few weeks alone.

Harris & Harris Group, Inc. (NASDAQ:TINY) is trading around $3.72. Harris & Harris is a venture capital firm that focuses on nanotechnology investments. Nanotechnology is likely to provide major investment opportunities in the future and TINY is a diversified way to play it. The 50-day moving average is $3.67 and the 200-day moving average is $4.62. These shares have traded in a range between $3.70 to $6.30 in the last 52 weeks. Two insiders recently bought 3,000 shares and others have been buying the stock regularly.

Boston Scientific Corp. (NYSE:BSX) is trading around $5.59. Boston Scientific is a leading make of specialty medical devices such as heart monitors. These shares have traded in a range between $5.26 to $7.96 in the last 52 weeks. The 50-day moving average is $5.65 and the 200-day moving average is $6.59. BSX is estimated to earn about 45 cents per share in 2011 and 50 cents in 2012. This stock looks undervalued and poised for a rebound in 2012. A number of insiders have been buying in November and together they have bought over 130,000 shares recently.

Chimera Investment Corporation (NYSE:CIM) is trading around $2.69. Chimera is a real estate investment trust, and is based in New York. These shares have traded in a range between $2.38 to $4.34 in the last 52 weeks. The 50-day moving average is $2.77 and the 200-day moving average is $3.20. CIM is estimated to earn about 57 cents per share in 2011. CIM pays a very generous dividend of 52 cents per share which is equivalent to a 19.8% yield. The book value is stated at $3.27. With the stock trading below book value, and a generous yield, this stock looks very cheap. A director and an officer recently bought 10,000 shares each, and other insiders recently bought as well.

Hersha Hospitality Trust (NYSE:HT) is trading around $4.58. Hersha Hospitality is a real estate investment trust (REIT) focused on hotels. The 50-day moving average is $4.10 and the 200-day moving average is $4.89. These shares have traded in a range between $3.14 to $6.94 in the last 52 weeks. Hersha is estimated to earn about 38 cents per share in 2011, and about 43 cents in 2012. HT pays a 24 cent dividend which yields 5.2%. Multiple insiders have been buying substantial amounts of stock, and it looks undervalued. A director just bought 25,000 shares.

Biosante Pharmaceuticals, Inc. (BPAX) is trading around $2.45. Biosante is a biotechnology company, based in Illinois. These shares have traded in a 52 week range between $1.40 to $4.02. The 50-day moving average is $2.42 and the 200-day moving average is $2.50. BPAX has a licensing agreement with Teva Pharmaceuticals (NYSE:TEVA) for Bio-T-Gel which treats low testosterone levels. BPAX looks like a solid buy on any dips. A director recently bought 3,000 shares and other insiders have been buying repeatedly this year.

Sequenom, Inc. (NASDAQ:SQNM) is trading around $3.85. Sequenom is a biotechnology company focused on diagnostic testing. The 50-day moving average is $4.58 and the 200-day moving average is $6.21. These shares have traded in a range between $3.78 to $8.71 in the last 52 weeks. SQNM recently announced plans to sell a test for Down Syndrome, and that cause a brief spike in the stock. This company has a solid balance sheet with about $100 million in cash and only around $12 million in debt. The CEO just bought 50,000 shares and 3 directors recently bought shares as well.

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 am long CIM. I may buy all of these stocks soon.

Source: 7 Stocks Trading Below $6 With Heavy Insider Buying