Below we compiled a list of oversold stocks insiders are bullish about. All stocks have market cap over $2 billion, lost at least 20% over the past three months, and most of them were purchased by multiple insiders over the past three months.
Molycorp, Inc. (MCP): Molycorp is a rare earth oxide producer in the Western hemisphere and owns a rare earth project outside of China. MCP was purchased by one insider and lost 30.20% over the past three months. Mark Smith bought 4,200 shares at $59.02 on August 15. MCP is now trading below $40 per share. It has a market cap of $3.3B and a P/E ratio of 155.72. D. E. Shaw had $30 million in MCP. (see our 2010 article about insider trading in Molycorp)
Alpha Natural Resources, Inc. (ANR): Alpha is a coal supplier in the United States. ANR was purchased by two insiders and lost 28.01% over the past three months. Michael Peelish, EVP and CAO at the company, purchased 1,700 shares at about $33 on August 15. Four days earlier, Michael Quillen, director at Alpha Natural Resources, also purchased 70,000 shares at about $30. Now ANR is trading at $23.93. It has a market cap of $5.4B and a P/E ratio of 58.37. Glenn Russell Dubin had over $300 million invested in ANR. John Paulson and D. E. Shaw also both had over $100 million of ANR shares.
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