Penny Stock Pick - CASB
Insider buying is a good indication that the stock is going bullish. When the stock has been falling and is at multi-year low, there is a very good chance that the trend will soon reverse back up. And this may probably be the case for Cascade Financial(CASB), the Everett, Washington based regional bank that had seem its price fall from $17 back in 2007 to as low as 33 cents last month.
According to the insider transactions, it seems the insiders took the golden opportunity and bought shares at 38 cents per share. It was around the time investors were fleeing the stock after FDIC issued the warning that the company would need to raise capital within three months. It might very well be the bottom because according to the technical chart, KD value is now going up and the stock is now above 20 day moving average, both bullish indication. The next three months would be critical as it will decide the fate of the company. However, before the three month deadline, enjoy the ride.