Why Insiders Are Lapping up CLWR, TAT, DVR?

Clearwire Corporation (NASDAQ: CLWR), TransAtlantic Petroleum (ADR) (NYSE: TAT), and Cal Dive International Inc (NYSE: DVR) have one thing in common. Insiders are regularly buying stocks in these companies and although the price movement is not necessarily positive, insiders have been net buyers in the recent past. Do they know what rest of the market does not?

Clearwire Corporation (NASDAQ: CLWR) currently trades at $1.84 and the stock has lost 38.9 per cent in the last six months. However, insiders probably see something else and have been net buyers in the period. If the numbers reveal anything, it is an important milestone for this broadband wholesaler which has just seen its future more entangled with Sprint than any time in the past. While this dawns to the market, despite its money losing status and debt concerns, a bankruptcy protection filing for Clearwire would be the last thing on market participants’ minds.

Similarly, more insiders have been buying shares of TransAtlantic Petroleum (ADR) (NYSE: TAT) in the last six months than they have sold. This Canadian oil & gas independent is likely to start gas production in Bulgaria this year and this is the single biggest driving force behind the stock. Another positive for TAT is the relatively better pricing it will be able to achieve in energy hungry Bulgaria. Once again, insider buying is hardly a reason behind the rise of the stock but the virtual non-selling by them in the recent months tells me that the chances of the company under promising and over delivering may be quite real. TAT currently trades at $1.27.

Cal Dive International Inc (NYSE: DVR), an oil well service provider, closed trade at $3.02 on Friday. The company provides a full range of services including offshore construction, inspection, maintenance, repair and decommissioning of production and pipeline infrastructure. While the stock has lost nearly 50 per cent in the last six months, insiders were quick to realize the opportunity and have added to their holdings. The stock is also among the ones which are oversold and has an RSI value north of 70. Although it is difficult to gauge what is driving this insider buying in these companies, it is understood that these companies are on the verge of a turnaround, especially Clearwire which has a negative performance in the last six months but has resurfaced tremendously in the past quarter or so.