This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Stock Insiders are Gobbling Up

Stocks in this article: MACK AVEO AKRX CMLS CPRX

Merrimack Pharmaceuticals

One biotechnology and drugs player that insiders are active in here is Merrimack Pharmaceuticals (MACK). This company is discovering, developing and preparing to commercialize innovative medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. Insiders are buying this stock into weakness, since shares are off by 25% during the last three months.

Merrimack Pharmaceuticals has a market cap of $628 million and an enterprise value of $562 million. This stock trades at a premium valuation, with a price-to-sales of 13.72 and a price-to-book of 50.66. Its estimated growth rate for the next quarter is 86.4%, and for next year it's pegged 41.3%. This is a cash-rich company, since the total cash position on its balance sheet is $86.67 million and its total debt is zero.

A director just bought 36,500 shares, or about $247,000 worth of stock, at $6.77 per share.

From a technical perspective, MACK is currently trending below its 50-day moving average, which is bearish. This stock has been trending sideways for the last two months, with shares moving between $6.02 on the downside and $7.50 on the upside. A high-volume move outside of that range soon will likely lead to the next major trend for shares of MACK.

If you're bullish on MACK, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $6.89 to $7.50 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 752,939 shares. If that breakout triggers soon, then MACK will set up to re-test or possibly take out its next major overhead resistance levels at $8.50 to $9.65 a share. Any high-volume move above $9.65 will then put $11.11 into focus for shares of MACK.

AVEO Pharmaceuticals

Another name in the biotechnology and drugs complex that insiders are snapping up a decent amount of stock in is AVEO Pharmaceuticals (AVEO). This company is engaged in discovering, developing and commercializing novel cancer therapeutics. Insiders are buying this stock into extreme weakness, since shares are off by 60% so far in 2012.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.66 +9.43 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • 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