Very Bullish View For SYNTA From Jim Cramer And His Crew From TheStreet
Another stock that insiders are active in here is Synta Pharmaceuticals (SNTA), which is engaged in discovering, developing and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions like cancer and chronic inflammatory diseases.
Synta Pharmaceuticals has a market cap of $348 million and an enterprise value of $277 million. This is a cash-rich company, since the total cash position on its balance sheet is $90.39 million and its total debt is $23.64 million. After you back out the debt, this company has $66.75 million of total cash on its balance sheet.
A director just bought 150,000 shares, or about $706,000 worth of stock, at $4.71 per share. That same director also just bought 500,000 shares, or about $2.26 million worth of stock, at $4.35 to $4.65 per share.
From a technical perspective, SNTA is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares plunging from its high of $10.74 to its recent low of $3.77 a share. During that move, shares of SNTA have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of SNTA have now started to rebound sharply off that $3.77 low and are quickly moving within range of triggering a near-term breakout trade.
If you're bullish on SNTA, then look for long-biased trades as long as this stock is trending above $4.50, and then once it breaks out above some near-term overhead resistance at $5.15 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 1.53 million shares. If that breakout triggers soon, then SNTA will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 50-day moving average at $6.65 a share.
Whenever Jim Cramer posts a 'BUY' on a stock, he most likely has bought the stock way ahead and now is shorting it, or wants to sell with a profit. The stock is almost guaranteed to do the opposite of his recommendation!