Popular has a market cap of $1.81-billion and an enterprise value of $6.45-million. The stock trades at a cheap valuation, with a forward price-to-earnings of 5.53. The company's estimated growth rate for this year is 483.3 per cent, and for next year it's pegged at 39.1 per cent. This is far from a cash-rich company, since the total cash position on its balance sheet is $840.08-million and its total debt is over $5-billion.
The CFO and vice president just bought 105,000 shares, or $189,000 worth of stock, at $1.80 per share.
From a technical standpoint, this stock is currently trading just above its 50-day moving average and substantially below its 200-day moving average, which is neutral trendwise. This stock topped out in June and July near $2.90 a share and recently hit a low of $1.20 a share. Since printing that low, the stock has rebounded to its current price of just over $1.75 a share.
What's interesting to note here is that this stock saw one of its largest volume days since early 2010 last Friday when over 54 million shares changed hands as the stock closed higher.
If you're looking to buy this stock, I would look to get long once it breaks out above some near-term overhead resistance at $1.82 to $1.88 a share on heavy volume. Look for volume that's tracking in close to or above its three-month average action of 11.8 million shares. If that breakout triggers, I would add to any long position once the stock takes out some more overhead resistance at $2.20 a share with solid volume. Target a run back towards the 200-day moving average of $2.62 a share.
One could simply use a mental stop that's just a few percentage points below the 50-day, in case this stock isn't ready to trend higher.
5. Coldwater Creek
One extremely speculative penny stock in which a key insider has been doing some large buying is Coldwater Creek , a specialty retailer of women's apparel, accessories and jewelry and gift items. Make no mistake about it: This stock has been absolutely destroyed by the sellers this year, with shares off by over 65 per cent. Insiders are clearly taking advantage of the plunging stock to buy shares at what I am sure they believe is a big discount.
Coldwater Creek has a market cap of $93.61-million and an enterprise value of $87.06-million. This company is currently not profitable yet, with an operating cash flow of -$36.6 million and a levered free cash flow of -$6.43 million. Coldwater Creek's estimated growth rate for this year is -168.2 per cent, and for next year it's pegged at 39.8 per cent. This is barely a cash-rich company, with a total cash position of $31.43-million and total debt of $27.75-million. After you back out the debt, Coldwater has $3.68-million of cash on their books.
The CEO and chairman of the board just bought 8.2 million shares, or about $7-million worth of stock, at 85 cents per share. The same CEO has now bought around $8.4-million worth of stock (including this recent buy) since early September, between $1.50 and 85 cents a share.
From a technical standpoint, this stock is currently trading well below both its 50-day and 200-day moving averages, which is bearish. During the past two months, this stock has been down trending hard and mostly making lower highs and lower lows, which is also bearish. That said, the stock has been known to make some monster spikes higher whenever it trades near 80 cents.
If you're looking to buy this stock, I would get long for a trade the next time it moves above its 50-day moving average (right now $1.14) with strong volume. Look for volume that's tracking in close to or above its three-month average action of 1.19 million shares. Volume for the past week has started to track in strong on the up days, so we could be close to another big spike in the near future. This is an extremely speculative stock though, so I would only be looking at this for a quick trade.