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Insmed Incorporated Message Board

  • x10bagger x10bagger Jul 18, 2007 5:33 PM Flag

    Institutional Accumulation? - how do you know?

    Is it just a gut feeling? Is there something in the charts over the past week that speaks to this being the case? I bought a small position earlier this month and was just hoping for some explanation of what tells you longs here that accumulation is what's keeping this stock down. I'm hoping to add to my position at these levels - this stock seems like a steal for less that three quarters a share.

    Thanks in advance for replying to an Insmed rookie.

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    • Thanks, everyone, for the insightful comments/discussion. I found all responses very helpful and surprisingly balanced. I guess I missed my chance at below .75 though. :) Good luck to all longs!

    • No gut feeling on this one... it's one of the few technical facts that's actually substantiated and documented quite well.

      For example, Telechart 2000 (Worden's Product) has a propriety indicator called BOP (Balance of Power). In short, it's green when "big money" is buying and red when "big money" is selling. (It actually has a scale of -100 to +100.)

      Starting at the beginning of July, it turned green. It's been strong green ever since. The pattern shown indicates constant institutional accumulation for the entire month of July. That's the good news. The bad news is that volume has been very light in July.

      Conclusion... not much going on with INSM right now... in terms of trading. But, the trading that is going on is almost all accumulation by one or more "big money" investors.

      There is an interesting divergence, though. Moneyflow (the interest of all buyers, not just the big ones) has been bottomed out for the entire month. This clearly shows no interest in this stock overall. In other words, retail investors are not coming into this stock.

      Another solid conclusion... retailers are continuing to bail and "big money" is buying their stock as soon as the retailers decide to get out.

      With a stock this small... this technical data can be taken one of two ways...

      1) The big money knows something and is taking every opportunity they can to get more of this stock at a low price.

      2) Only one big money player is accumulating everyone else's shares as everyone else bails out.

      Either way... there's someone out there who believes this stock is going places or wants this stock for other reasons (buyout, negotiating leverage, etc.) and that someone is a big player in this particular stock. The question is... do you agree with them or not?

      Happy Hunting,


    • I'm long INSM because of my own research and comfort with risk/reward. I came to my opinion by reading SEC documents, visiting the company's website, researching potential market sizes, understanding possible biogenerics legislation. I have tried to share opinions/interpretations with others who have similarly referenced the publicly available material.

      Then there are those that speak of 'insty accumulation' 'hedge fund manipulation', 'insider knowledge', 'DNA/TRCA strategies', etc. Unless there is a reference, it is all speculation, opinion, and general hot air.

      You need to understand the facts that are available to you. If someone makes a claim and cannot reference a document, that claim is worthless.

      Good luck to you.

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