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Brian Gorban
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Brian Gorban has been an active investor for almost twenty years.
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Financial blog/advice
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  • 7 Notable Insider Purchases
    We frequently scan for notable insider activity as it's widely viewed as a strong precursor for great things to come in the company's near future. These stocks below are ones that recently caught our attention.

    United Therapeutics Corporation (UTHR), a biotechnology company, engages in the development and commercialization of therapeutic products for patients with chronic and life-threatening diseases in the United States and Internationally. On Dec. 19-Dec. 20 CEO Martine Rothblatt collectively bought 11,283 shares bringing his total ownership to over 656,000 shares.

    Affymax, Inc. (OTCPK:AFFY), a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. On Dec. 19, board director Peter Walker bought 16,540shares and this was more significant in the fact that it is the only shares he directly owns. He may see real good value at this point and possibly be buying more in the near future., Inc. (SPRT) provides online care services for the digital home and small business primarily in North America. On Dec. 19, major shareholder RGM Capital bought a massive 114,900 shares pushing their total owernship to over 6.15 million shares now indicating strong bullishness in SPRT.

    ViroPharma Incorporated (VPHM), together with its subsidiaries, engages in the development and commercialization of therapeutic products that address serious diseases in the United States and internationally. On Dec. 14, major shareholder Baker Brothers Life Sciences Capital bought a considerable 291,706 shares and now holds a big 9.84 million shares.

    Glu Mobile Inc. (GLUU) engages in the design, marketing, and sale of casual and traditional mobile games worldwide. On Dec. 14, board director Matthew Drapkin bought a huge 447,097 shares and now holds more than 1.6 million shares collectively.

    Sunovia Energy Technologies, Inc. (OTC:SUNV), together with its subsidiaries, engages in the development and sale of light emitting diode (LED) lighting products in the United States. On Dec. 15, CEO Arthur Buckland bought a big 10,000,000 shares and now holds directly 35 million shares.

    Memorial Production Partners LP (MEMP) focuses on acquiring, developing, producing, and operating oil and natural gas properties in North America. On Dec. 14, President and CEO John Weinzierl bought a considerable 105,263 shares and this is interesting as these are the only shares he owns either directly or indirectly. Possibly he sees great value at these levels and will continue to purchase more shares.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I wrote one article where I looked and saw the title was the same (Although it is a widely used one as well which should be pointed out) and had different analysis with my stocks. Why isn't there a review/leniency/probation/chance for me to explain as I believe I've done great work for Seeking Alpha and Seeking Alpha has been a great partner for me?
    Dec 27 8:39 PM | Link | Comment!
  • Notable Stocks With Unusual Options Activity
    When buying a stock, I've found historically that looking at options volume is a great indicator for one simple reason: options provide fantastic leverage for investors, and the stronger the volume the stronger the conviction. Each contract allows an investor the right to buy (a call contract) or right to sell (a put contact) 100 shares-- meaning, if a stock currently costs $20/share but the call premium is only $1, this gives the investor 20-to-1 leverage. Therefore, if I'm an investor and extremely confident about an upcoming earnings report, related news event, etc. I'd look to the company's options rather than just buying the common stock outright as I described here. These companies below had options volume that caught my eye on December 12.

    Research In Motion Limited (RIMM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. There was particularly strong volume in the Feb 19 calls with over 10,500 being bought aggressively against just only over 500 in open interest. Since these are being bought a few months out, this is most likely continued optimism towards a potential takeover. With RIMM trading at just a 3x trailing P/E, 4x forward P/E, .4x P/S and EV/S, .9x P/B, just 1.4x EV/EBITDA, and over $2/share in net cash with no debt, I think it makes for a nice speculative buy. I say speculative since RIMM's technology has clearly declined in value as Apple's (AAPL) iPhone and Google's (GOOG) Android phone keep gaining market share, but RIMM's existing patents and hopes of turning things around are plausible making this options purchase a decent move.

    Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. There was strong action recently described here and again now in the Feb 40 puts with over 2,700 changing hands against only 199 in open interest. However, it looks as though investors were selling this at the put price meaning they're are bullish on a $40 price floor. I'm not so sure longer-term on RAI, and for that matter Altria Group (MO), Lorillard (LO), and other tobacco stocks due to the declining revenue trends, ever increasing government taxes, and strong push to keep pushing down its use. Moreover, I must say I'm not a fan of smoking so I may have some bias against it.

    Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide and represent some attractive value as we brought up here. There was almost 3,500 Jan 65 calls changing hands, but didn't necessarily indicate bullishness as they weren't being bought aggressively. Either way at just a 15x trailing P/E, 12x forward P/E, 3.6% dividend yield, and massive $11B net cash position, JNJ makes for a nice holding. 

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I didn't know how else to respond to the feedback, but I resubmitted as I made the suggested change to Feb. call and provided more analysis..what system to game are you talking about?Moreover, feedback for the beta-test, I think being able to respond to editor feedback more timely would be greatly helpful as is the case here. Also, corrections are moving much slower in case the team doesn't know. Lastly, articles that are premium sometimes don't get that classification . Overall a much nicer lay-out and nice tools added. Great job!Best, Brian
    Tags: BBRY, AAPL, GOOG, RAI, MO, LO, JNJ, options
    Dec 14 6:50 PM | Link | Comment!
  • Not Surprised By Fed's Announcement
    Interesting how the Federal Reserve didn't say anything really unexpected and yet the market took an ~2% hit from peak to close.

    European Crisis still isn't solved, still a lot of economic carnage, etc., etc., Were any of you really suprised?
    Dec 13 5:51 PM | Link | 2 Comments
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