Do you like to invest with a stock's technical signals? One idea is to consider whether a stock is technically oversold, measured by the relative strength index.

We ran a screen on technically oversold stocks, with RSI(14) below 40. We then screened for those trading between $1 and $5 a share, considering many investors prefer to invest in the low price range.

Finally, we screened for those with optimism from company insiders, with significant net insider purchases over the last six months. When insiders put their own money on the line to purchase their company's shares it indicates they are bullish about the firm's future, and believe current share price is undervalued.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks are oversold and ready for a turnaround? Use this list as a starting point for your own analysis.

1. MannKind Corp. (MNKD): Focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Market cap at $462.07M, most recent closing price at $1.88. RSI (14) at 39.8. Over the last six months, insiders were net buyers of 31,269,350 shares, which represents about 24.74% of the company's 126.38M share float.

2. Sonus Networks, Inc. (SONS): Provides voice and data infrastructure solutions for wireline and wireless telephone service providers. Market cap at $395.86M, most recent closing price at $1.41. RSI (14) at 21.13. Over the last six months, insiders were net buyers of 8,366,676 shares, which represents about 3.76% of the company's 222.59M share float.

*Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.

http://seekingalpha.com/article/1019411-2-oversold-stocks-under-5-being-snapped-up-by-insiders?source=yahoo