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April 18, 2005
Insider Buying at RSTO
Barron’s Online (click here) reports a big insider purchase at Restoration Hardware (RSTO). This is a turnaround play in the home furnishings business. In the SEC filing, Glenn Krevlin, a director, bought over 500,000 shares on behalf of some private funds.
And the chart doesn’t look half bad either. The stock failed to partake in the Aug-Dec market advance, but held up quite well in January. Perhaps those purchases put a floor on the stock. The stock formed a triangle over the last 5-6 months and broke resistance with good volume in April. This is one of the few stocks trading at a new high for 2005 and shows good relative strength. There is a ton of support around 5 and risk in new positions would be on a move below the Sep-Oct lows (4.82).
Posted by Arthur B. Hill at April 18, 2005 03:17 PM