Out Fox The $treet

Summary Sprint insiders make large stock purchases at prices around $5. The company hasn't resolved liquidity issues with a likely asset sale required. The pricing war and liquidity situation haven't improved suggesting investors don't follow the insiders in purchasing the stock at $5. In the last couple of weeks, it was disclosed that Sprint (NYSE: S ) CEO Marcelo Clarue and CFO Joseph Euteneuer purchased shares of the struggling wireless provider. The amounts were impressive with the CEO buying five million shares of the company's stock for nearly $25 million and the CFO buying roughly $100,000 worth of stock. Though multiple insider purchases of that magnitude are typically a bullish signal, one major issue needs resolution before investors should blindly follow the executives into the stock. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more...

Ever since the old Petrohawk management team purchased Ram Energy and invested millions of dollars last December, analysts have suggested buying the new Halcon Resources Corporation (HK) . Unfortunately, unless investors bought during the first two days, anybody holding now is under water. In essence, any investors buying the stock this year have lost money. The domestic land E&P firm is building positions in leading unconventional shale plays, such as the Eagle Ford, Bakken, Utica, and the Tuscaloosa Marine. Investors now though get the option of following those insiders who made significant purchases in the $5 area last week. Oddly though, after a strong surge Tuesday on the news of the insider purchases, the stock has started sinking again. Should investors jump in with the insiders or dump the stock? Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Glu Mobile (GLUU) has absolutely plunged the last few months as the mobile game developer struggled with a slew of failed games during Q3. Unfortunately investors continue to forget that short-term failure shouldn't lead to the outright collapse of the stock. Long-term valued can still exist. The company still expects over $100M in revenue next year and appears to be setting up a premier development platform. So why do investors continue to sell growth stories into oblivion? This company reached a market value below $150M yet recent deals for fast growing companies have hit 10x revenue. 6-Month Chart The stock slumped from $5 to $2 based on the game failures during Q3 that lead to 5 games being delayed during Q4 to allow the new President to review the monetization plans. Considering a director bought nearly $10M worth of shares back in early October at around $3, why should the new purchases prop up the stock nearly 10% today? Maybe it shoul...