Insiders Are Buying This $7 Stock

Both the cycle and the stock seem to be near a bottom.

Highlights:

• We’ve had some success with deep value plays of late, and Unifi Inc. offers a similar opportunity.

• A fiscal year that was likely the worst in Unifi’s history has sent the stock to a 14-year low. But cyclical factors, rather than structural problems, seem the cause.

• A cyclical upswing should coincide with two significant catalysts. In a blue-sky scenario, in which management targets are hit, the stock can easily quadruple.