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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 this article, I will write about four companies that insiders bought last week and deserve to be considered.

Daxor Corporation (NYSEMKT:DXR)

Insiders have started to snap up shares in Daxor Corporation. It is a medical device manufacturing company which offers biotech services in the United States. The company develops and markets BVA-100 Blood Volume Analyzer, an instrument that measures human blood volume. BVA-100 Blood Volume Analyzer is used to diagnose and treat patients with heart failure, kidney failure, hypertension, and syncope.

Daxor has a market cap of $33.54 million and an enterprise value of $52.89 million. This stock trades at a cheap valuation. Its trailing P/E is incalculable, and its forward P/E is just incalculable. Daxor's estimated growth rate for this year is -245.23. It has a total cash position on its balance sheet of just $59k million, and its total debt is at $19.34 million.

Joseph Feldschuh, President and CEO, has just bought 2,000 shares, or $16k worth of stock, at $8 per share.

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From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its October, 2011 high of $11.24 to a recent low in October of $7.9. 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 $8.14 a share. Look for volume that's tracking in close to or above its three-month average action of 6,955 shares.

Kid Brands (NYSE:KID)

Insiders have started to buy shares in Kid Brands. The company, together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and decor, such as toddler beds, blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art under the Kids Line, Carter’s, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands; and kitchen and nursery appliances, food preparation products, diaper bags, and spa/bath products under Kids Line and CoCaLo brands.

Kid Brands has a market cap of $38.43 million and an enterprise value of $85.08 million. This stock trades at a cheap valuation. Its trailing P/E is incalculable, and its forward P/E is just 4.76. Kid's estimated growth rate for this year is -207.64%. It has a total cash position on its balance sheet of just $1.07 million, and its total debt is at $47.72 million.

Raphael Benaroya, Director of Kid Brands, has just bought 250,000 shares, or $387,500 worth of stock, at $1.55 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 January high of $3.97 to a recent low in September of $0.95. After hitting that low, the stock bounced to its current price of $1.76. 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 $1.82 a share. Look for volume that's tracking in close to or above its three-month average action of 88,690 shares.

Orbit International Corp (NASDAQ:ORBT)

Another stock whose insiders are very active is Orbit International Corp. The company engages in the design, manufacture, and sale of electronic components and subsystems, and commercial and custom power units. The company operates in two segments, Electronics and Power. The Electronics segment designs, manufactures, and sells customized panels, components, and subsystems to prime contractors, governmental procurement agencies, and research and development laboratories primarily in support of specific military programs.

Orbit International has a market cap of $14.83 million and an enterprise value of $17.43 million. Its trailing P/E is 29.45, and its forward P/E is just 14.73. Orbit's estimated growth rate for this year is 201.07%. It has a total cash position on its balance sheet of just $1.42 million, and its total debt is at $4.02 million.

- Elkhorn Partners Limited Partnership, 10% owner of Orbit International, has just bought 17,100 shares, or $53,865 worth of stock, at $3.15 per share.

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From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its March high of $4.67 to a recent low in August of $3.02. After hitting that low, the stock bounced to its current price of $3.24. 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 $3.29 a share. Look for volume that's tracking in close to or above its three-month average action of 6,980 shares.

Alcoa Inc (NYSE:AA)

Another stock whose insiders are very active is Alcoa Inc. The company engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. The Alumina segment engages in mining of bauxite, which is then refined into alumina. The Primary Metals segment produces aluminum.

Alcoa has a market cap of $9.27 billion and an enterprise value of $17.42 billion. This stock trades at a cheap valuation. Its trailing P/E is 144.83, and its forward P/E is just 12.07. Alcoa's estimated growth rate for this year is 112.94%. It has a total cash position on its balance sheet of just $1.43 billion, and its total debt is at $9.52 billion.

- Martin Sorrel, Director of Alcoa, has just bought 4,145 shares, or $36,419 worth of stock, at $8.7864 per share.

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From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its October, 2011 high of $11.66 to a recent low in July of $7.97. After hitting that low, the stock bounced to its current price of $8.69. 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 $8.81 a share. Look for volume that's tracking in close to or above its three-month average action of 20,599,160 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: 4 Stocks That Insiders Bought From October 8-12 To Consider