5 Stocks Insiders Are Jumping Into
From a technical perspective, MCP is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been destroyed by the bears during the last three months, with shares plunging from a high of $35.79 to a recent low of $19.11 a share. During that downtrend, shares of MCP have mostly made lower highs and lower lows, which is bearish technical price action. That said, shares of MCP could be forming a bottom here since buying interest has moved back into the stock at $19.11 to $19.49 a share.
If you're bullish on MCP, then I would look for long-biased trades as long as its trending above that recent low of $19.11 a share with strong upside volume flows . I would consider any upside volume day that registers near or above its three-month average action of 3 million shares as bullish. One could also look to buy strength and get long once MCP breaks out above some near-term overhead resistance at $23.07, and then above its 50-day at $24.67 a share with high-volume. If we get that breakout soon, then look for MCP to re-test and possibly take out its next significant overhead resistance level at $25.92 a share.
On the flipside, I would avoid MCP or look for short-biased trades if that breakout fails to trigger soon, and then it takes out some major near-term support levels at $19.49 to $19.11 a share with heavy volume. A high-volume move below those levels will setup MCP to trade into new 52-week-low territory, which is bearish technical price action. Tempur-Pedic
Another name that insiders are loading up on here is consumer goods player Tempur-Pedic (TPX) , a manufacturer, marketer and distributor of premium mattresses and pillows, which it sells in approximately 80 countries under the TEMPUR and Tempur-Pedic brands. Insiders are finding some deep value here since this stock has plunged 55% so far in 2012.
Tempur-Pedic has a market cap of $1.5 billion and an enterprise value of $1.92 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 7 and a forward price-to-earnings of 7.87. Its estimated growth rate for this year is -16.4%, and for next year it's pegged at 12.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $134.02 million and its total debt is $566.17 million. After you back out the cash, Tempur-Pedic has a total of $432.15 million in debt on its books.
A director just bought 112,000 shares, or around $2.80 million worth of stock, at $25.00 to $25.16 per share. Another director also just bought 4,500 shares, or around $106,000 worth of stock, at $23.60 per share.