One biotech company that insiders have been buying is Savient Pharmaceuticals ( SVNT), a specialty biopharmaceutical company focused on commercializing Krystexxa (pegloticase) in the U.S. and completing the development and seeking regulatory approval outside of the U.S. for Krystexxa , particularly in the European Union. Insiders are clearly finding some value here, since this stock is off by over 58% so far in 2011. This company has a market cap of $326 million and an enterprise value of $258 million. This company is currently not profitable and has an operating cash flow of -$75 million and a levered free cash flow of -$51.99 million. This is a cash-rich company, with a total cash position on its balance sheet of $240.35 million and total debt of $173.33 million. That nets out to a total of $67.02 million in cash. The CEO and president just bought 28,000 shares, or $114,451 worth of stock, at $4.09 to $4.10 per share. From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. That said, the stock has formed a prefect near-term double-bottom chart pattern at around $3.53 to $3.55 a share during the past two months. This double-bottom pattern followed a big drop in the stock from its July high of $8.03 a share. The way I would play this stock is to be a buyer off the next major breakout. That breakout will trigger once this stock trades above some near-term overhead resistance at $4.61 a share and above its 50-day moving average of $5.15 a share. I would look for a breakout confirmation if you see volume that tracks in close to or above its three-month average volume of 1.78 million shares. It's worth noting that a number of recent up days have registered volume well above 1.78 million. This is a heavily shorted stock, with over 32% of the tradable float currently sold short by the bears. It's worth mentioning that the bears have been increasing their bets from the last reporting period by 3.1%, or by about 676,577 shares. If this stock breaks out soon, then a large short squeeze could take this stock back towards $8 a share in a hurry. >>Practice your stock trading strategies and win cash in our stock game.