And possibly part of the fuel for the recent rise. From the Motley Fool:
>>>Tiny Gems No offense to my old rumor mill, but it is hard to find detailed -- dare I say trustworthy -- research on tiny companies (in these parts, we call them Tiny Gems). Not even the boutique shops offer much by way of coverage. Believe me, I've looked. That isn't to say that the rumor mill doesn't have its place. I mean, we dug up a few killers over the years. We bought ImClone (Nasdaq: IMCL) years before Icahn did, and we made out like bandits. We bought SciClone (Nasdaq: SCLN) on positive insider data and didn't make a penny. (But have you seen that one lately?)<<<
MF writes lots of free articles but to get its stock picks you need to pay them some $. They'll tell you what stocks they like and why they like them on a monthly basis (2/mo? 5/mo? I forget) in certain subgenres of investing if you are a preferred subscriber, and they usually focus on small caps they feel are under Wall Street's radar.
When I googled SciClone/Motley Fool I got very few hits, and nothing recent besides the June 10th article I quoted this from. The article says "we" bought SciClone based on "insider data." Since there has only been strong insider buying the past few months (accellerating lately!) it is a fair assumption to make that MF made SciClone one of its monthly stock picks fairly recently.
I've been impressed with MF's choices in the past (I haven't ever subscribed to one of their paid services, though) so it's nice to know they seem to agree with me on SciClone. Lol, they did deviate from one of their investment criteria a bit on the "solid management" requirement, though!
>>>The trick, obviously, is to find companies today with the characteristics of a 1980s-era Wal-Mart. As with any small cap, insist on these in any micro cap:
Solid management with significant stakes Great, sustainable businesses Dominant positions in niche markets Sterling balance sheets Strong free cash flow<<<
At the bottom of that Motley Fool article, it has the following disclaimer:
--> This commentary was originally published on Feb. 4, 2005. It has been updated.
Fool writer Paul Elliott owns shares of ImClone, but no other company mentioned. Dell, Schwab, and Biogen Idec are Motley Fool Stock Advisor recommendations. The Motley Fool has a full disclosure policy. <--
But---even though MF did not make an actual recommendation on SCLN, I believe other stock screening services have been recommending it based on the incredible inside buys and the extreme oversold situation this past Spring. For example, this stock originally came up as a "buy" on my stock screener at $3.45 this spring (before the drop to $2.10). I watched it based on the initial recommendation as it tested $3.00, then started buying in. By the way, before anyone thinks I'm too smart/lucky: I tried to average down with this one based on the Cavazza buying, but as it swooned through the $2s I got scared and stopped buying at $2.50. I could just kick myself now for not buying it all the way down, but at the time it felt like I was staring into the abyss!
I've been lurking here for a while, and the informative posts with all the wonderful research links posted by Bertha and thoughtful situational analysis gave me food for thought, and help me to become a "Z" believer.
Soooo...TC, Sno, GMBart, Randal, Doc, Bertha etc etc etc--thanks for being so very informative (and entertaining!).