Thursday, May 7, 2009

Unique Stock Screen -- United Community Banks Inc. (UCBI)

Smoking Securities linked to this Stock Screener last week that he has been using to identify stocks with high short interest that are trading at new highs. (great call/trade on GMCR by the way, Chuck.)

while I was farting around on the screener, it occurred to me to search for stocks that have high short positions and recent insider buying. I thought companies that had such a dissonance of opinion about them would be interesting to monitor. thing is, there is currently only one symbol that meets those parameters -- UCBI.

The insider buying the last six months hasn't been very large, but it's something. plus there hasn't been any selling by insiders, so that's good I guess.

as with a lot of things, the stocks up quite a bit from the lows, and looks to be approaching resistance. who Knows, but it seems risky to buy at this level, but it might be something to keep an eye on as an opportunity during the next down cycle in the market. here's the ATR(1) point and figure graph to bookmark, so you can monitor the share price history from varying perspectives depending on how volatile the stock is on a given day.

but what gets me is that there are no other stocks out there with high short positions and insider buying. either the shorts ultimately have it right and the companay insiders Know it, or the officers and directors of these public companies are clueless. either way, this isn't a reassuring indicator on the state of Corporate America.

we'll have to look at this screen again after the Stock Markt takes another dive.