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TheStreet Open House

5 Stocks With Big Insider Buying


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One stock whose insiders are doing some big buying is Vical (VICL), 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 Majesco (COOL) and Adolor (ADLR).

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