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One stock whose insiders are doing some big buying is
Vical(VICL - Get Report), which researches and develops biopharmaceutical products based on its DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. This stock is off to a poor start in 2012, with the shares off by around 14%.
Vical has a market cap of $270.28 million and an enterprise value of $217.64 million. This stock trades at price-to-sales of 8.72, and it trades at a price-to-book of 4.06. Its estimated growth rate for this year is 74.5%, and for next year it's pegged at -176.9%. This is a cash-rich company, since the total cash position on its balance sheet is $52.63 million and its total debt is zero.
A beneficial owner just
bought 2.67 million shares, or $10 million worth of stock, at $3.75 per share.
From a technical standpoint, VICL is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock recently gapped down from over $4 a share to $3.60 on monster volume. Since that monster volume gap down, the stock has been able to hold that $3.61 low and trend a bit higher back above its 200-day moving average of $3.72.
If you're bullish on VICL, I would consider getting long at current levels since the upside volume the last few days has been very strong. I would simply use a mental stop right below that recent $3.61 low, since a break of that price would have me avoiding this stock like the plague. I would only add to any long positions in VICL once it takes out its 50-day at $4.04 with volume. Look for volume that registers near or above its three-month average volume of 876,732 shares.
The only reason I lean slightly bullish on VICL after that large volume gap down is that the stock is still showing a pattern of higher lows since it bottomed in October at $2.22 a share.
Vical, which is
rated C- hold by TheStreet Ratings, shows up on a list of the
10 Best-Performing Stocks Under $5 in 2011, along with