Another commodity player that insiders are jumping into here is Walter Energy (WLT), a producer and exporter of metallurgical coal for the global steel industry. Insiders are buying this stock into extreme weakness, since shares are off by a whopping 48%.
Walter Energy has a market cap of $1.14 billion and an enterprise value of $3.6 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 19.61. Its estimated growth rate for this year is -395.9%, and for next year it's pegged at 164.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $235.79 million and its total debt is $2.61 billion. This stock currently sports a dividend yield of 2.6%.
4 GARP Growers Primed for a Short Squeeze
A director just bought 25,000 shares, or about $475,000 worth of stock, at $19 per share. This same director also just bought 25,000 shares, or about $443,000 worth of stock, at $17.75 per share.
From a technical perspective, WLT is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock recently came out of a nasty downtrend after it hit a low of $16.12 a share. After hitting that low, shares of WLT have started to trend sideways between $16.12 and $19.81 a share.
If you're bullish on WLT, then look for long-biased trades as long as this stock is trending above some key near-term support levels at $16.57 or $16.12, and then once it breaks out back above some near-term overhead resistance at $19.81 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 4.90 shares. If that breakout triggers soon, then WLT will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $23.10 to $25.81 a share.