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Insiders have been doing some decent buying in development-stage biopharmaceutical player
Clovis Oncology(CLVS). Insiders are loading up on this stock into strength since shares are up over 33% so far in 2012.
Clovis Oncology has a market cap of $484 million and an enterprise value of $329 million. Its estimated growth rate for this year is 78.4%, and for next year it's pegged at -37.2%. This is a cash-rich company, since the total cash position on its balance sheet is $140.25 million and its total debt is zero.
A director just
bought 25,000 shares, or $500,000 worth of stock, at $20.00 per share. This company also just announced a secondary offering of 3.75 million shares of common stock priced at $20 per share.
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technical perspective, CLVS is currently trading below its 50-day
moving average, which is bearish. This stock IPOed back in November of last year, and since then it's soared from a low of $11.45 to a recent high of $27.55 a share. After hitting that high, the stock has dropped sharply with high-volume back below its 50-day to a recent low of $17.85.
If you're a bull on CLVS, I would only look for long-biased trades once this stock breaks out above some near-term overhead resistance at $19.20 to $20.50 a share with high volume. Look for volume on that move that's near or well above its three-month average action of 110,405 shares. It's worth pointing out that volume on Wednesday was 140,290 shares and the stock finished near its daily high of $19 a share. If we get that action soon, then this stock has a great chance to make a quick run at its 50-day moving average of $23.08 or possibly higher.
I would avoid any long trades in CLVS if this stock drops back below its recent low of $17.85 with volume. The downside could be big if CLVS loses that level since the next major support zone won't come into play until around $15 to $13 a share.