Director and major owner ups stake by 2.9 million shares.
Kevin Tang, a director at La Jolla Pharmaceutical Company (LJPC), recently picked up 2.97 million shares, increasing his stake by over 60 percent.
The total cost of the buy came to just over $17.4 million.
- The #1 Stock Pick for 2020 Is Not What You’d Expect!
Legendary investor Doug Casey predicts the biggest gold boom in a decade.
In a rare video interview, he reveals the details of his top stock for playing the gold boom. Watch the video FREE now!
With access to approximately 22.9 million ounces of gold indicated and inferred—valued at over CA$42 billion—Doug Casey’s pick is ready to pop. An investment opportunity like this comes around at most once in a decade. GET DOUG CASEY’S TOP STOCK PICK FREE
This is the first move made by insiders in nearly one year. Insiders have largely been buyers over the past three years, with one major sale by a fund partially weighing against these insider buys.
La Jolla Pharmaceutical focuses on the discovery, development and commercialization of therapeutics for life-threatening diseases. Shares are up 11 percent in the past year.
Action to take: The pharmaceutical space has largely been out of favor with the market for a while, and remains a bit of a laggard even with the recent run-up. So that’s already an attractive space for investors to look at today.
This early-stage company remains highly unprofitable, as most at this stage do, but with a number of products in development, the company could have a banner year.
If the company does have some successful drugs come online, it could also become a buyout candidate from a bigger player looking to improve their pipeline without paying for the research work.
With these factors in mind, shares are a buy up to $8, well off their 52-week high closer to $14.
Speculators only have options plays going out to June, but the June $10 calls, trading for around $1.50, could give investors a double or better if shares head back to the old highs near $14.