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A biotech stock that insiders are active in here is
Repligen(RGEN), which engages in the manufacture and supply of biologic products used to manufacture biologic drugs. Insiders are buying this stock into some solid strength, since shares are up a whopping 78% so far in 2012.
Repligen has a market cap of $191 million and an enterprise value of $166 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 154 and a forward price-to-earnings of 32. This is a cash-rich company, since the total cash position on its balance sheet is $28.38 million and its total debt is zero.
A director just
bought 10,000 shares, or around $60,000 worth of stock, at $6.08 per share.
From a technical perspective, RGEN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending extremely strong for the last three months, with shares soaring higher from a low of $3.78 to its recent high of $6.36 a share. During that uptrend, shares of RGEN have consistently made higher lows and higher highs, which is bullish technical price action. That move has now pushed RGEN within range of triggering a near-term breakout trade.
If you're bullish on RGEN, then I would look for long-biased trades once it manages to break out above some near-term overhead resistance at $6.36 a share with high volume. Look for a sustained move or close above $6.36 with volume that hits near or above its three-month average action of 158,098 shares. If that breakout triggers soon, then RGEN will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $7.29 a share.
Traders can look to buy RGEN off any weakness to anticipate that breakout and simply use a stop that sits just below $5.80 to $5.32 a share. You could also use a stop at around its 50-day moving average of $5.08 a share, depending on if you want to give it more room.
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