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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Feeling the Insider Love

Stocks in this article: NBR TLAB GHDX VOCS KEYN

Genomic Health

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

Get Adobe Flash player

A biotechnology and drugs player that insiders are falling in love with here is Genomic Health (GHDX), a molecular diagnostics company focused on the global development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Insiders are buying into strength here since this stock is up over 17% so far in 2012.

Genomic Health has a market cap of $894 million and an enterprise value of $770 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 105.32 and a forward price-to-earnings of 166.17. Its estimated growth rate for this year is -103.8%, and for next year it's pegged at 1,900%. This is a cash-rich company, since the total cash position on its balance sheet is $101.85 million and its total debt zero.

A director and beneficial owner just bought 195,701 shares, or around $5.56 million worth of stock, at $27.99 to $28.50 per share.

From a technical perspective, GHDX is currently trading above both its 50-day and 200-day moving averages, which is bullish. In fact, this stock recaptured its 50-day moving average of $29.63 on Wednesday with decent volume. That move back above its 50-day has also pushed the stock within range of triggering a major near-term breakout trade.

If you're in the bull camp on GHDX, I would look for long-biased trades as long this stock is trending above its 50-day and if it triggers that breakout above $29.99 with strong upside volume. Look for up-day volume that's near or well above its three-month average action of 145,390 shares. If that breakout triggers soon, then GHDX should easily continue its uptrend towards its March high of $32 a share. If that level gets hit, I would then add to any long positions if it gets taken out with high-volume.

I would avoid this stock or look for short-biased trades if GHDX fails to maintain its uptrend above its 50-day moving average of $29.62 a share, or if it fails to trigger that breakout above $29.99 a share. This stock could easily trend down towards some near-term support levels at $27.76 to $27.42 a share if heavy volume selling pushes this back below its 50-day soon.

4 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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