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In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders (in the U.S. defined as beneficial owners of 10% or more of the firm's equity securities) must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Many investors follow the summaries of these insider trades in the hope that mimicking these trades will be profitable. While "legal" insider trading cannot be based on material non-public information, some investors believe corporate insiders nonetheless may have better insights into the health of a corporation (broadly speaking) and that their trades otherwise convey important information (e.g., about the pending retirement of an important officer selling shares, greater commitment to the corporation by officers purchasing shares, etc.).

Executives and directors have the most up-to-date information on their companies' prospects. Intimately acquainted with cyclical trends, order flow, supply and production bottlenecks, costs and other key ingredients of business success, these insiders are way ahead of analysts and portfolio managers, not to mention individual investors. Insiders' decisions - legal or not - to trade in their own companies' stocks are certainly worth examining. So, in the next article I will write about three companies that insiders bought this week and deserve to be considered.

Nature's Sunshine Products Inc (NASDAQ:NATR)

Insiders have started to snap up shares in Nature's Sunshine Products Inc., a natural health and wellness company, together with its subsidiaries, primarily engages in the manufacture and direct sale of nutritional and personal care products worldwide. The company offers herbal products in the form of capsules or tablets; and single herbs and herb combinations in the form of liquid herbs and extracts under ALJ, Cardio Assurance, Blood Pressurex, LBS II, CleanStart, Mistica, Liquid Chlorophyll, Noni Plus, and Core Greens brands.

Nature's Sunshine Products Inc has a market cap of $254.58 Million and an enterprise value of $186.64 Million. Its trailing P/E is 12.94, and its forward P/E is just 8.68. Nature's estimated growth rate for this year is 106.64%. It has a total cash position on its balance sheet of just $68.63 Million, and its total debt is at $7.55 Million. So, its total debt/equity is just 7.36.

Willem Mesdag, Nature's director, has just bought 410,116 shares, or $6.64 million worth of stock, at $15.70 per share.


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From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock plunged from its July high of $17 to a recent low in August of $13.5. After hitting that low, the stock bounced to its current price of $16.31. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $17 a share. Look for volume that's tracking in close to or above its three-month average action of 35,338 shares.

Lucas Energy Inc (NYSEMKT:LEI)

Another stock whose insiders are very active is Lucas Energy Inc. This company operates as an independent oil and gas company in Texas. It acquires oil and gas properties; and develops, produces, and markets crude oil and natural gas from various known geological formations, including the Austin Chalk, Eagle Ford, and Buda Formations primarily in Gonzales, Wilson, Karnes, and Atascosa counties in Texas.

Lucas Energy has a market cap of $52.05 Million and an enterprise value of $77.88 Million. This stock trades at a cheap valuation. Its forward P/E is just 18.91. Lucas Energy estimated growth rate for this year is -29.47%. It has a total cash position on its balance sheet of just $679.39K, and its total debt is at $22.50 Million. So, its total debt/equity is just 68.01.

Meson Capital Partners LLC and Ryan J. Morris is a member of a section 13(d) group that collectively owns more than 10% of the issuer's outstanding shares of common stock. They have just bought 752,744 shares, or $1.59 million worth of stock, at $2.12 per share.

Young Capital Management LLC and Joshua D. Young is a member of a section 13(d) group that collectively owns more than 10% of the issuer's outstanding shares of common stock. They have just bought 577,744 shares, or $1.23 million worth of stock, at $2.13 per share.


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From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock plunged from its march high of $3.2 to a recent low in July of $1.2. After hitting that low, the stock bounced to its current price of $2.08. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $2.2 a share. Look for volume that's tracking in close to or above its three-month average action of 188,992 shares.

PokerTek Inc (NASDAQ:PTEK)

Insiders have started to buy shares in Pokertek Inc. This company together with its subsidiaries, engages in the development, manufacture, and marketing of electronic table games and related products for casinos, cruise lines, racinos, card clubs, and lotteries worldwide. The company’s electronic tables are multi-station gaming devices that automate the shuffling, dealing, cash handling, enforcement of game rules, awarding of pots, and other aspects of the game, as well as enables players to view their cards, place bets, and take other actions using individual touch screens.

PokerTek has a market cap of $6.38 Million and an enterprise value of $6.2 Million. PokerTek estimated growth rate for this year is 49.37%. It has a total cash position on its balance sheet of just $720.27K, and its total debt is at $700k. So, its total debt/equity is just 26.88.

Gehrig H. White, PokerTek's director and 10% owner, has just bought 405,405 shares, or $300k worth of stock, at $0.74 per share.


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From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock plunged from its July high of $1.05 to a recent low in August of $0.6. After hitting that low, the stock bounced to its current price of $0.81. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $0.92 a share. Look for volume that's tracking in close to or above its three-month average action of 10,794 shares.

*Chart data sourced from finviz.com, all other data sourced from yahoo.com as well as the webs of the previously mentioned companies.

Source: 3 Stocks That Insiders Bought From September 17-21 To Consider