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Another name that insiders find very attractive here is biotechnology and drugs player
Amicus Therapeutics(FOLD), which is focused on the discovery, development and commercialization of orally administered, small molecule drugs known as pharmacological chaperones for treating a range of diseases, including lysosomal storage diseases and diseases of neurodegeneration. Insiders are sniffing out some value here, since the stock has dropped over 20% in the last six months.
Amicus Therapeutics has a market cap of $230 million and an enterprise value of $124 million. This stock trades at a reasonable valuation, with a price-to-sales of 9.92 and a price-to-book of 2.85. Its estimated growth rate for this year is 15.6%, and for next year it's pegged at -5.6%. This is a cash-rich company, since the total cash position on its balance sheet is $108.20 million and its total debt is $1.73 million.
>>4 Biotech Stocks Under $10 With Relative Strength
A beneficial owner just
bought 2,949,581 shares, or around $18.58 million worth of stock, at $6.30 per share.
From a technical perspective, FOLD is currently trading below its 50-day
moving average and just above its 200-day moving average, which is neutral trendwise. This stock has sold off hard over the last few trading sessions, with shares plunging from $6.89 to a recent low of $4.87 a share. That selloff has been accompanied with heavy selling volume, which is bearish technical action. That said, shares of FOLD have so far been defended right near its 200-day moving average of $4.77 a share.
If you're in the bull camp on FOLD, I would look for long-biased trades if this stock can manage to hold a trend above its 200-day at $4.77 a share with strong upside volume flows. I would consider any
upside volume day that registers near or above its three-month average action of 222,562 shares as bullish. If FOLD can manage to hold a trend above its 200-day, then I would look to add to any positions once it sustains a move or close back above its 50-day at $5.29 a share with heavy volume. If we get that action, then target a pop towards $6 or possibly a bit higher.
On the flipside, I would avoid FOLD or look for short-biased trades if it fails to get back above its 50-day, and then takes out its 200-day at $4.77 a share with heavy volume. If we get that action, then FOLD will likely re-test its June low of $4.25 a share, or possibly even take that level out.
Amicus shows up on a list of
22 Biopharma Stocks With Breakout Potential in 2012.