Penny stocks can be volatile, curious, unpredictable, and downright ridiculous sometimes.
So why do wise investors love them so much? It’s because when you know how to find the right penny stocks, they can be like a winning lottery ticket!
And this rare situation with a particular penny stock could be spitting out the winning numbers right now…
December 1, 2014 appears to have been a very important one for Medgenics, Inc. (MDGN).
MDGN, a medical technology and therapeutics company, is engaged in the research and development of products in the field of biotechnology and associated medical equipment in the United States.
And on December 1, 8 different insiders bought 545,122 shares of stock in the company valued at $2.235 million!
On the shoulders of its development of a proprietary ex vivo gene therapy platform, MDGN recently announced a public offering of common stock.
As part of that proposed offering, the underwriters were granted the option to purchase up to an additional 15% of shares offered to the public.
And on December 1, all of the common stock shares were sold, including the 15% additional shares to the underwriters…
And the underwriters were the MDGN insiders!
That’s why they bought more than 500,000 shares for well over $2 million all in one day.
So where is MDGN now?
Since December 1 when shares were sold at $4.10 per share, MDGN has been sitting near the same level or just lower.
The price actually hit a low of $3.68 and a height of $4.41, but dodn’t close out at those prices on either day they were reached.
Despite the initial insider buying, MDGN doesn’t appear to be ready for takeoff just yet.
However, an insider backing such as the one MDGN has is usually a sign of great confidence in the company, and the fact that it’s a biotech penny stock means it has some of the most potential in the market to skyrocket!
If and when that confidence translates into a solid stock, I will be bringing it directly to readers of my Penny Stock Insider newsletter.
