Another stock in the biotechnology and drugs complex that insiders are active in here is BG Medicine ( BGMD), which is focused on the discovery, development and commercialization of novel diagnostic tests based on biomarkers for high-value market opportunities in health care. Insiders are buying this stock into major weakness, since shares are off by 69% in the last six months. BG Medicine has a market cap of $43 million and an enterprise value of $35 million. This stock trades at a premium valuation, with a price-to-sales of 20.48 and a price-to-book of 15.94. Its estimated growth rate for this year is -36%, and for next year it's pegged at 12.5%. This is a cash-rich company, since the total cash position on its balance sheet is $17.58 million and its total debt is $9.83 million. After you back out the debt, this company has $7.75 million in cash on its books. A director and beneficial owner just bought 2 million shares, or $4 million worth of stock, at $2 per share. Another director also just bought 250,000 shares, or $500,000 worth of stock, at $2 per share. From a technical perspective, BGMD is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last two months, with shares dropping from its high of $4.48 to its recent low of $2 a share. During that downtrend, shares of BGMD have been mostly making lower highs and lower lows, which is bearish technical price action. That said, the stock has started to rebound off that $2 low and is now moving within range of triggering a near-term breakout trade. If you're in the bull camp on BGMD, then I would look for long-biased as long as it's trending above $2, and then once it manages to break out above some near-term overhead resistance levels at $2.32 to $2.53 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 volume of 725,129 shares. If that breakout triggers soon, then BGMD will set up to re-test or possibly take out its next major overhead resistance levels at $3.15 to its 200-day moving average at $4.02 a share.