One medical equipment and supplies player that insiders are loading up on here is Nanosphere (NSPH - Get Report), which develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene System, which enables simple, low cost, and highly sensitive genomic and protein testing on a single platform. Insiders are loading up on this stock into strength, since shares are huge by over 90% so far in 2012.
Nanosphere has a market cap of $125.90 million and an enterprise value of $94.14 million. This stock trades at a premium valuation, with a price-to-sales of 39.44 and a price-to-book of 3.30. Its estimated growth rate for this year is 22.3%, and for next year it's pegged at 23.3%. This is a cash-rich company, since the total cash position on its balance sheet is $31.76 million, and its total debt is zero.A director and beneficial owner just bough 1 million shares, or $2.4 million worth of stock, at $2.40 per share. >>5 Biotech Stocks Under $10 Set to Soar From a technical perspective, NSPH is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently triggered a major breakout when it cleared some overhead resistance at $2.07 to $2.21 with monster volume. Following that breakout, shares of NSPH went on to hit a high of $3.57 a share. Since hitting that high, the stock has pulled back to a recent low of $2.55 a share. If you're bullish on NSPH, then I would look for long-biased trades once this stock breaks out above some near-term overhead resistance at $3 to $3.20 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 792,902 shares. If we get that move soon, then NSPH will have an excellent chance of re-testing and taking out its previous high of $3.57 a share. This stock could easily tag $4.50 to $5 a share if clear $3.57 soon with volume. I would avoid NSPH or look for short-baized trades if it fails to trigger that breakout, and then drops back below that major near-term support level at $2.55 a share with high volume. If we get that action, then NSPH is likely to re-test and possibly drop below its 50-day moving average of $2.22 a share.
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