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A pharmaceutical and diagnostics player whose insiders are doing some active buying is
Opko Health(OPK - Get Report), which is focused on developing a range of solutions, including molecular diagnostics tests, pharmaceuticals and vaccines. This stock has done absolutely nothing so far in 2012, with shares virtually flat on the year.
Opko Health has a market cap of $1.39 billion and an enterprise value of $1.33 billion. This stock trades at a lofty valuation, with a price-to-sales of 32.71 and a price-to-book of 13.65. This is a cash-rich company, since the total cash position on its balance sheet is $87.42 million and its total debt is $12.55 million.
The CEO and chairman of the board just
bought 500,000 shares, or about $2.36 million worth of stock, at $4.72 per share.
From a technical perspective, OPK is currently trading above its 200-day moving average and right below its 50-day
moving average, which is neutral trendwise. For the past month and change, this stock has found some buying support at around $4.70 to $4.66 a share, and it has run into selling resistance near $5.50 and above.
If you're a bullish on OPK, then I would look for long-biased trades once this stock takes out its 50-day moving average of $5.03 with high volume. Look for volume on that move that's near or well above its three-month average action of 1,414,680 shares. If we get that action soon, I would then only add to any long positions once $5.60 to $5.85 a share are taken out with big volume. Otherwise, I would simply lock in profits near those levels if the sellers continue to defend their positions.
Opko shows up in
Jana Partners' portfolio as of the most recently reported period, with a 2 million-share position.