One biotechnology and drugs player that insiders are loading up on here is AcelRx Pharmaceuticals (ACRX). This company develops and commercializes therapies for the treatment of pain. Insiders are buying this stock into extreme strength, since shares are up over 80% so far in 2012.
AcelRx Pharmaceuticals has a market cap of $79 million and an enterprise value of $72 million. This stock trades at a premium valuation, with a price-to-sales of 58.34. Its estimated growth rate for this year is -31%, and for next year it's pegged 41.4%. This is barely a cash-rich company, since the total cash position on its balance sheet is $23.38 million and its total debt is $17.68 million.
A beneficial owner and director just bought 2,416,918 shares, or $7.99 million worth of stock, at $3.31 per share.From a technical perspective, ACRX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently sold off sharply from its November high of $5.25 to its recent low of $3.30 a share. During that selloff, shares of ACRX were consistently making lower highs and lower lows, which is bearish technical price action. That said, if ACRX can hold that $3.30 low then the stock could be setting up to rebound again and breakout. If you're bullish on ACRX, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance at $3.71 a share with high volume. Look for a sustained move or close above $3.71 a share with volume that registers near or above its three-month average action of 206,758 shares. If that breakout triggers soon, then ACRX will set up to re-test or possibly take out its next major overhead resistance levels at $4.80 to $5.25 a share. Vitesse Semiconductor Another name in the semiconductor complex that insiders are snapping up a large amount of stock in is Vitesse Semiconductor (VTSS). This company designs, develops and markets high-performance, cost-competitive semiconductor solutions for Carrier and Enterprise networks worldwide. Insiders are buying this stock into weakness, since shares are down by 26% so far in 2012.
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