A Biotech Buying Opportunity

Genta(GNTA Quote) was one of the earliest winners for InsiderInsights. I first recommended it in my first issue, when Sept. 11 sent investors around the world fleeing. I reasoned then that a protracted battle with terrorists would not stop people from getting diseases that are targeted by several beaten-down biotechs, and agreed with insiders that they were good buys.

The position in GNTA rose from $8.57 when I recommended it to as high as $18 in the following weeks. Last December, however, the stock traded down sharply, and my recommendation was stopped out at $14 for a 63.4% gain.

After falling further, GNTA climbed back up to $18 just three months ago, and I lost interest in the stock as it seemed too high to chase. So I was certainly surprised to see Form 4s a couple weeks ago indicating that insiders were buying the stock for around $11.50. And even more surprised to see that GNTA had subsequently gapped down further. ...