Insider Buying: Advanced Photonix, Inc. (API)

<script src="http://charts.wikinvest.com/wikinvest/wikichart/javascript/scripts.php" type="text/javascript"></script>

Flash Player 9 or higher is required to view the chart
Click here to download Flash Player now

<script type="text/javascript">if (typeof(embedWikichart) != "undefined") {embedWikichart("http://charts.wikinvest.com/WikiChartMini.swf","wikichartContainer_AD5EC24E-8553-8A85-2D1E-C2F0D6C8E657","300","245",{"ticker":"API","rollingDate":"6 months","liveQuote":"true","showAnnotations":"true"});}</script>

View the full API chart at Wikinvest

We are focused on an 80 cent semiconductor stock for this week’s insider buying stock idea.

Advanced Photonix, Inc. (API) engages in the development and manufacture of optoelectronic devices and sub-systems, and systems. It offers optical receivers, which include Avalanche Photodiode technology and PIN photodiode technology based upon III-V materials, including InP, InAlAs, and GaAs; custom optoelectronic subsystems; and terahertz instrumentation.

Its Terahertz sensor product line is targeted to the industrial non-destructive testing (NDT), quality control, homeland security, and military markets. The company serves original equipment manufacturers in industrial sensing/NDT, military/aerospace, telecom, medical, and homeland security industries.

Since August 27th, 3 insiders have purchased 22,500 shares of Advanced Photonix. At less than a dollar, 22,500 shares may not seem like much, but when one considers that it’s the first action insiders have taken since selling in 2008, it’s has to been seen as a positive.

Other positives we see include some of API’s fundamentals. Analysts expect the small semiconductor company to turn a profit of 7 cents in 2010. That puts the forward

P/E at just 11.29. Sales are expected to increase by at least 13% , so the forward P/E is less than both the growth rate for sales and earnings.

We also like the fact that API shares trade for just 69 cents for every dollar they do per share in sales and at just 1.10 times its book value. Both of these numbers are at deep discounts relative to the average company in the same industry.

We also see positives on API’s stock chart. Recently Advanced Photonix produced one of our favorite technical analysis buy signals, a positive MACD crossover. We also see the shorter moving averages crossing over their longer term cousins. We can see API’s shares jumping to as high as $1.10 in the near term. Over the longer term, a double from its current level is very possible.