Top 10 Insider Microcap Stock Picks

by: Microcap Speculator

Its time for another installment of the Microcap Insider Buying Report. I began with J3SG's 3-month microcap insider and 10% holder buying summary, and used Yahoo! Finance and EDGAR to investigate the leads. Want to follow the insiders? Take a look at these companies:

  • JL Halsey Corp. (OTC:JLHY): Chairman William Comfort and director Andrew Blair bought over 12 million shares (mostly in a limited partnership) in non-market transactions from entities controlled by David Burt. I take this as a vote of confidence in the owner of Lyris and other email and ecommerce businesses, which just reported solid earnings.
  • Telik, Inc. (OTCQB:TELK): Black Bear Offshore Master Fund continues to buy shares in this fallen pharmaceutical development company. Do they know something we don't, or are they just doubling down on a bet gone bad? Stay tuned.
  • GTC Biotherapeutics (GTCB): CEO, President and Chairman Geoffrey Cox continues to make small purchases of this microcap biotech company, which recently expanded the license for its anti-nerve agent therapy.
  • Zhone Technologies (ZHNE): New Enterprise Associates continues to be a substantial buyer of this communications equipment provider. Although Zhone has come a long way since 2002, it is still not profitable. I'll pass.
  • Ardea Biosciences (PINK:ARDC-OLD): Baker Brothers Life Science Fund and Tang Capital are recent buyers in this Pink Sheets biotech company, which appears to be a spinout from Valeant Pharmaceuticals (NYSE:VRX).
  • World Heart Corp. (NASDAQ:WHRT): Microcap investing duo Austin Marxe and David Greenhouse have taken a substantial stake in World Heart, which develops the Levacor magnetic levitation heart pump. Take a look at their other holdings.
  • Great Plains Renewable Energy (NASDAQ:GPRE): After watching shares of his ethanol manufacturing company drop over 50% from its 52-week highs around $50 per share, CEO Wayne Hoovestal apparently had enough. In early March, he bought 182,000 shares at $22, coincidentally last Friday's closing price.
  • Metromedia Int'l (OTC:MTRM): Black Horse Capital Management upped its stake by 1,000,000 shares in this GSM wireless company operating in the Georgian Republic.
  • EAU Technologies (OTCPK:EAUI): EAU claims to have an electrolyzed water technology for non-toxic, safe disinfecting applications. Peter Ullrich must think it works -- his Water Science LLC fund just bought another $3M worth of shares.
  • TRX, Inc. (OTC:TRXI): After this developer of software for travel agents and corporate travel departments tumbled on a lousy earnings report and outlook, major shareholder BCD Holdings (which has two directors on the board) picked up another 175,000 shares. Given the outlook for this industry and the company's own guidance, its hard to get excited about TRXI even at these levels.

  • Disclosure: I have no position in any of the above companies.