This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Stocks Insiders Are Snapping Up


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

Get Adobe Flash player

A stock in the biotechnology and drugs complex whose insiders have bought up a decent amount of stock is Endoyte (ECYT - Get Report), which is engaged in developing therapies for the treatment of cancer and inflammatory diseases. Insiders are spotting some deep value here since the stock is off by over 50% in 2011.

Endoyte has a market cap of $155.08 million and an enterprise value of -$14.82 million. Its estimated growth rate for the next quarter is 25.6%, and for next year it's pegged at 17.1%. This is an extremely cash-rich company, with a total cash position of $138.87 million and total debt of just $12.19 million. After you back out the debt, its total cash comes to $126.68 million.

A director just bought 125,000 shares, or $420,000 worth of stock, at $3.36 per share.

From a technical standpoint, ECYT is currently trading substantially below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down huge from over $10 a share to under $4 a share. After that monster gap down that came on huge volume, ECYT went on to hit a low of $3.02.

If you're bullish on ECYT, I would look to get long once it breaks out above some near-term overhead resistance at $3.28 on high volume. Look for volume that's tracking in close to or above its three-month average action of 439,886 shares. I would use a mental stop just below $3.10 or $3.02 a share, which are both near-term support zones.

Another way to trade ECYT is to buy the stock once it starts to trade back above the gap down day high at $4.29 a share on huge volume. Once that trade triggers, then ECYT should bounce huge as it attempts to refill some of that massive gap down. Keep in mind that stocks with lots of gaps in their charts are risky, so that trade above the gap down day high is a better play since it will demonstrate more strength in this equity.

5 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
DRL $0.72 0.00%
ECYT $6.36 0.00%
GLUU $4.90 0.00%
OZM $12.35 0.00%
AAPL $123.25 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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