I'm with "waiting4kerx" - a little story about insiders and a 5 bagger...
I stumbled on Ligand Pharmaceuticals (LGND) in the fall of 2011 and noticed there had been large and consistent insider buying on the open market for the past year...in fact it was so persistent I even referenced it in my first SA article about AVNR in Feb 2012. I ended buying LGND - I didn't totally understand the science but I understand it when I see insiders pouring their own money into the stock in open market purchases. They knew what was coming. The prices for LGND at the time were ranging between $11 and $14. It is over $52 per share today. I sold my shares when it hit 20. I'm not making that mistake again here.
I'm not saying this investment is risk free and the price will surely fluctuate but I take the insider buying very seriously. This science seems solid and insiders are buying shares left and right. I'm going to put my 6000 shares of SNTA away and forget about it for awhile. Do not EVER underestimate insiders buying shares in massive quantities on the open market. Nobody is in a better position to know what is going on then the insiders.
I buy when insiders do if a company is solid enough to warrant an investment. In the past 12mo I've made good $ on KERX, MNKD, PACB doing this. I'm also holding ACHN, SNTA & KERX long. This method and rationale of investing doesn't always work though... I've also lost $ over the years betting with insiders. Buyer beware and buyer be smart with a long term plan to hold and be patient. My feeling as of yesterday is to wait this one out a while.
I sold 50% of my (mostly insider price) shares yesterday. After the options expire and moving into the new year it should slowly start to rise. Very slowly. That's my take on the situation. I may be wrong... or right.
Thnx for your story ! The flip side to your story is why I sold my long time CLDX position and shifted it all to SNTA.
There is something about insiders selling CLDX OPTIONS ...that does not give me as an investor the warm and fuzzy.
I DO however like it when I see insiders at SNTA buying on the market LARGE positions.
I did what the CLDX insiders did and sold. I rather invest with SNTA insiders. Besides SNTA "looks" like CLDX did, few years ago just prior to the huge move they have seen.