This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks With Big Insider Buying

Savient Pharmaceuticals

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One biotech company that insiders have been buying is Savient Pharmaceuticals (SVNT), a specialty biopharmaceutical company focused on commercializing Krystexxa (pegloticase) in the U.S. and completing the development and seeking regulatory approval outside of the U.S. for Krystexxa , particularly in the European Union. Insiders are clearly finding some value here, since this stock is off by over 58% so far in 2011.

This company has a market cap of $326 million and an enterprise value of $258 million. This company is currently not profitable and has an operating cash flow of -$75 million and a levered free cash flow of -$51.99 million. This is a cash-rich company, with a total cash position on its balance sheet of $240.35 million and total debt of $173.33 million. That nets out to a total of $67.02 million in cash.

The CEO and president just bought 28,000 shares, or $114,451 worth of stock, at $4.09 to $4.10 per share.

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. That said, the stock has formed a prefect near-term double-bottom chart pattern at around $3.53 to $3.55 a share during the past two months. This double-bottom pattern followed a big drop in the stock from its July high of $8.03 a share.

The way I would play this stock is to be a buyer off the next major breakout. That breakout will trigger once this stock trades above some near-term overhead resistance at $4.61 a share and above its 50-day moving average of $5.15 a share. I would look for a breakout confirmation if you see volume that tracks in close to or above its three-month average volume of 1.78 million shares. It's worth noting that a number of recent up days have registered volume well above 1.78 million.

This is a heavily shorted stock, with over 32% of the tradable float currently sold short by the bears. It's worth mentioning that the bears have been increasing their bets from the last reporting period by 3.1%, or by about 676,577 shares. If this stock breaks out soon, then a large short squeeze could take this stock back towards $8 a share in a hurry.

>>Practice your stock trading strategies and win cash in our stock game.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
XTXI $0.00 0.00%
SVNT $0.00 0.00%
LNCE $34.73 -0.29%
UBP $18.07 -0.17%
AAPL $109.55 -1.60%


Chart of I:DJI
DOW 16,784.75 -5.44 -0.03%
S&P 500 1,985.39 +5.47 0.28%
NASDAQ 4,757.4870 +9.1260 0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs