In April our algorithm picked up a significant insider buy in Oramed Pharmaceuticals Inc.: Li Xiaopeng, a Director of the company, bought 52,814 shares worth 334,313 dollars that day. The price? $6.33. Today ORMP is listed at $8.48… This represents a gain of +32% from the April 19 alert. If you had sold it on April 26, just 1 week (!!!) after the insider trading alert, you would have a quick profit of 40% in your pocket as you can see on the screenshot below.
A +40% gain…Li Xiaopeng knows what he is doing and he timed his buy perfectly! The reason why the stock went up and is still going up further is because ORMP received patents in multiple continents for their new drug. I received a few e-mails in my personal mailbox about the ORMP insider buying alert and some subscribers made a lot of money here. Although I would advise everyone to stay methodical, I am happy that many made huge financial strides on this trade (and that some take the time to write these delightful notes)!
More information on Oramed Pharmaceuticals Inc.
Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the use of orally ingestible capsules or pills for delivery of polypeptides. Its product portfolio includes ORMD-0801, an oral insulin capsule, which has completed Phase IIb clinical trials for the treatment of diabetes; and ORMD-0901, an analog for GLP-1 gastrointestinal hormone, which has completed Phase Ib clinical trials for the treatment of type 2 diabetes. The company operates primarily in Israel. The company was formerly known as Integrated Security Technologies, Inc. and changed its name to Oramed Pharmaceuticals Inc. in April 2006. Oramed Pharmaceuticals Inc. was founded in 2002 and is based in Jerusalem, Israel.
- Published in Biotech
On Wednesday the 12th of April, 2017, the Chairman & CEO of Agenus Inc. picked up shares in his own company. He made two large buys with a total value of $330,000 over the past couple of days according to the filing (filing 1 & filing 2). Our system alerted us yesterday after market close of this insider trade.
What’s our take on this trade?
When we look at the chart of $AGEN we notice one thing that worries us. The stock recently dropped through a multiple bottom, which is usually a very negative sign. Overall, it seems to be trending down very clearly since October last year. On the other hand, our system didn’t alert us for no reason. It is a double insider purchase from a good insider. He has purchased more shares in the past and most of the time the stock went up afterwards. Furthermore, we see a good amount of volume of this stock so we don’t have to worry about not being able to sell shares if it isn’t going to be a success. The low average volatility worries us a little bit, but still we feel that it is worth a shot. We are buying and hoping to get a quick profit of around 8% to 10%. At the same time we will set a stop loss at $3.00 and will keep an eye at this trade. If it doesn’t go up in the coming days, close your position and move on to the next trade.
More information on Agenus Inc.
Agenus Inc., a clinical-stage immuno-oncology company, focuses on the discovery and development of therapies that engage the body’s immune system for patients suffering with cancer. The company offers Retrocyte Display, an antibody discovery platform for the identification of fully-human and humanized monoclonal antibodies; SECANT yeast display, an antibody discovery platform used for the generation of novel monoclonal antibodies; and phage display technologies. It is also developing checkpoint modulating antibody candidates targeting GITR, OX40, TIM-3, and LAG-3. In addition, the company develops vaccine programs, such as Prophage cancer vaccine candidate; AutoSynVax, a synthetic cancer vaccine program targeting the neo-epitope landscape in cancer patients; and PhosPhoSynVax, a vaccine candidate designed to induce immunity against a novel class of tumor specific neo-epitopes. Further, Agenus Inc. develops QS-21 Stimulon, a saponin-based vaccine adjuvant that has completed Phase III clinical trials for the treatment of malaria and shingles. The company was formerly known as Antigenics Inc. and changed its name to Agenus Inc. in January 2011. Agenus Inc. was founded in 1994 and is headquartered in Lexington, Massachusetts.
- Published in Biotech
Although both stocks posted decent highs inside May of +8.45% and +19.35% respectively, June was really where the action was about to happen. Let’s take another look at Limelight Networks (LLNW) and Geron Corporation (GERN) to make clear what insider buying activity is all about. Stock prices do not really care about dates as much as people do as you can see below.
BOOM! +41% on LLNW and +69% on GERN! See what I mean here? This is the kind of information you miss when only looking at snapshots. +41% and +69% from the time of our alerts looks completely different figures than what we saw in May alone, of course.
So what happened here? Well in short LLNW won an 8-year old patent infringement court case in early June, and the FDA removed the hold on GERN’s cancer research clinical trial in the middle of June. We first alerted LLNW on May 22nd and GERN on May 12th in real-time at $2.13 and $1.86 respectively when significant insider buying had just taken place in both companies.
For new readers: this is the kind of price action you get when following insider buying activity. So many statistical studies have proven the edge insiders have and, as a consequence, investors who follow them closely (that is why we do it in real-time) and on top of that there are plenty of anecdotal stories like the above that underline that insiders do know more.
Because this is not the millionth profitable coincidence, of course, and you can bet your pinky that these things will keep happening with a lot of stocks spiking as a result. From our perspective we just let it all happen and we are going to keep profiting from this happily and safely. Sign up for a Free Trial by clicking the button below if you have not already!