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Oramed Pharmaceuticals
One pharmaceutical player that insiders are in love with here is Oramed Pharmaceuticals (ORMP_), which is engaged in the research and development of pharmaceutical solutions for the use of orally ingestible capsules or pills for delivery of polypeptides. Insiders are buying this stock into major weakness, since shares are down by 26% so far in 2014.
Oramed Pharmaceuticals has a market cap of $110 million and an enterprise value of $93 million. This stock trades at a fair valuation, with a forward price-to-earnings of 24.09. Its estimated growth rate for next year is 167.6%. This is a cash-rich company, since the total cash position on its balance sheet is $7.79 million and its total debt is just $47,250.
A beneficial owner just bought 75,000 shares, or about $796,000 worth of stock, at $10.62 per share.
From a technical perspective, ORMP is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been downtrending badly for the last three months, with shares falling from its high of $31.73 to its recent low of $9.64 a share. During that move, shares of ORMP have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of ORMP have now started to bounce off its 200-day and it's quickly moving within range of triggering a near-term breakout trade.
If you're bullish on ORMP, then I would look for long-biased trades as long as this stock is trending above its 200-day at $10.23 or above more support at $9.64 and then once it breaks out above some near-term overhead resistance levels at $12 to $12.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 787,203 shares. If that breakout triggers soon, then ORMP will set up to re-test or possibly take out its next major overhead resistance levels at $14 to $15, or even its 50-day moving average of $16.37 a share.
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