Nope, that's not it at all. He bought with his own money and he knows positive things about WLT that you don't.
Down over 3% in the first hour only to turn around and bounce back up strongly (like AAPL this morning) ; found support at 17.23, which is good sign but it still needs more time for consolidation .. perhaps a few days I think.
AAPL found the support at 420 (higher low) which is good sign, but needs more time for consolidation here.. few days i guess ..
A higher low has been made it found support at 420 which is good sign but needs more time for consolidation here.. few days i guess .....
Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At Walter Energy (WLT), a filing with the SEC revealed that on Monday, Director Michael T. Tokarz purchased 25,000 shares of WLT, at a cost of $19.00 each, for a total investment of $475,000. Investors can pick up WLT even cheaper than Tokarz did, with the stock changing hands as low as $17.96 in trading on Wednesday — that’s 5.5% below Tokarz’s purchase price. Before this latest buy, Tokarz made one other purchase in the past twelve months, buying $443,750 shares for a cost of $17.75 each.
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.
Michael Tokarz, a Director of coal company Walter Energy (NYSE:WLT), bought 25,000 shares of company stock for $475,000. Walter Energy produces and exports metallurgical coal for the global steel industry, but also produces steam coal, coal bed methane gas, and metallurgical coke. This is Tokarz's third purchase of company stock since April 29. Due in part to the decline in the price of metals, the company reported on May 2 that earnings fell by 40% in the first quarter of 2013. The company's stock price is down 47.46% YTD, and it is down 69.39% since this time last year.
Business Insider reports, Russian billionaire Alisher Usmanov bought $100 million worth of Apple.
Very black and white thinking there... a recipe for losses.
Just needs to clear $417 and then the 50 day average at $450...
They know the buybacks begin on Monday and shorts will begin to be forced to cover in large numbers.