Although it is not a penny stock, Zoltek Companies Inc. (Nasdaq: ZOLT) just had some serious insider trading and should be on your list of stocks to watch. ZOLT stock is currently trading at $8.51 on relatively low volume for no gain or loss thus far. What’s important is that Zoltek CEO and chairman of the board, Zsolt Rumy, recently purchased 45,195 shares, $352,335 worth of ZOLT stock at an average price of $7.796 per share, right around the time you can see in the chart below that the RSI entered “oversold territory“.
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ZOLT Stock Chart
Market Cap (intraday): 292.02M
Price/Sales (ttm): 1.66
Price/Book (mrq): 1.00
52-Week High
(Feb 6, 2012): 15.01
52-Week Low
(Oct 4, 2011): 5.60
Avg Vol (3 month): 355,829
Avg Vol (10 day): 309,700
Shares Outstanding: 34.36M
Float: 27.55M
% Held by Insiders: 19.85%
% Held by Institutions: 54.60%
Shares Short
(a/o May 15, 2012): 4.89M
For technical trading, ZOLT stock is currently priced at around -8.42% below the 50 day moving average, -12.22% below the 200 day moving average, -43.64% below the 52 week high of $15.01, and 51.07% above the 52 week low of $5.60. ZOLT stock has been under the influence of the bears in the stock market for the last 4 months since the share price plunged from the $15.01 high to its most recent low of $7.34.
When Zoltek’s stock price was sliding it was consistently making lower highs and lower lows, as bearish technically as you can get. Although the PPS has started to bounce back the last couple of weeks, this stock has to find some way to breakout above some near-term overhead resistance at $8.47 a share with high-volume. If it fails to trigger that breakout and drops back towards $7.34 a share with heavy volume, ZOLT could easily trade near the penny stock level at or around its 52-week low of $5.60 a share.
About ZOLT Stock
On May 3rd, Zoltek reported financial results for Q2 of its 2012 fiscal year. Net revenues for the quarter ended March 31, 2012, totaled $47.0 million, compared to $37.1 million in the second quarter of fiscal 2011, an increase of 26.7%. Net income for the quarter ended March 31, 2012, totaled $3.3 million ($0.10 per share), compared to a net loss of $5.1 million ($0.15 per share) in the second quarter of fiscal 2011.
Zoltek Companies, Inc., through its subsidiaries, develops, manufactures, and markets carbon fibers and technical fibers primarily in Europe, the U. S., and Asia. The Company offers commercial carbon fibers that are used as reinforcement material in composites for commercial products; and oxidized acrylic fibers and specialty carbon fibers to manufacture aircraft brake pads and for heat/fire barrier applications.
Bottom Line: These non-penny stocks like the one of Zoltek, ZOLT, are also cheap enough and under enough “short traders” radars to offer some good returns. ZOLT stock was bought by its CEO at an average price of $7.796 which clearly indicates some self-love for the shares. Any price less than what the CEO paid would be a bargain depending on if they can hit their earnings next quarter.
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