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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Stocks With Big Insider Buying

Nanosphere

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

Get Adobe Flash player

One stock whose insiders are doing some active buying in is Nanosphere (NSPH), which develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene System, that enables sensitive genomic and protein testing on a single platform. Insiders clearly see value here; this stock has been crushed in 2011, with shares off by over 70%.

Nanosphere has a market cap of $49.96 million and an enterprise value of -$7.18 million. The company is currently not profitable, with an operating cash flow of -$32.94 million and levered free cash flow of -$26.31 million. This is a cash-rich company, since the total cash position on its balance sheet is $54.53 million and its total debt is zero.

A director and beneficial owner just bought 285,235 shares, or $314,928 worth of stock, at $1.10 per share. The CEO also recently bought 10,000 shares, of $9,000 worth of stock, at 90 cents per share.

From a technical standpoint, this stock is currently below both its 50-day and 200-day moving averages, which is bearish. That said, the stock is quickly approaching a crossover of its 50-day of $1.25, and volume going into the potential move is strong. Volume on Wednesday hit over 670,000 shares as the stock closed up 5.5%. That volume is well above its three-month average volume of 347,700 shares.

If you like this stock, I would look to get long once it busts above that 50-day moving average with volume. I would then add aggressively to any long position once the stock takes out $1.38 to $1.48 a share with volume. Target a run back towards $1.70 or possibly even higher if this stock wants to trend up significantly from current levels. Use a mental stop just below the 50-day if/when it does cross back above that key technical level.

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

Stock quotes in this article: NSPH, DLTR, FCE.A, VITC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs