In my latest post from February 8th, I proposed to purchase La Jolla Pharmaceutical (LJPC) based on insiders’ purchasing behavior. Today the stock is trading at $6.25 – 9.08% increase in a week (!!!). LOB, my recommendation from two weeks ago traded today at $16.40 (+13.26%), and LNDC, my recommendation from 3 weeks ago, traded today at $12.60 (+7.05%), so something is working here!
Strong signal – Telenav, Inc.
Telenav, Inc. (TNAV), from Santa Clara, CA, is a tech company focusing on connected car and location-based platform. This is not a startup but a real company with some serious clients (GM, Ford, Toyota, FCA). Despite increasing revenues the company accumulates losses, but it seems that a page is being turned right now – since November 2018 no less than 9 insider purchases were made. TNAV is not well covered so I am feeling my way in the dark a bit, but the wide trust from executive coupled with the rapid changes in this industry help me take this chance. The stock just crossed the 200-day MA, a good opportunity to purchase it today for $5.24.
Potential signal – Galectin Therapeutics
I try to avoid biotechs due to their binary nature, but here’s something worth following - Galectin Therapeutics (GALT) from Georgia. The company is developing treatments where the galectin-3 protein is implicated in a disease. I’ll make a long story short – there is no revenue but they have 3 products in semi-advanced phases, and insider activity is picking up as crunch time approaches. The activity is not very super strong yet, so I hold on purchasing, but I feel that there is more to come here.
When purchasing a stock based on insider activity I normally hold it for up to 6 months or 30% increase, whichever comes first. During that time the potential should unfold, and if not, it probably wouldn’t, at least in this round (unless there is additional significant insider activity). I’m purchasing TNAV at $5.24 and hope to see a nice return in the coming months.