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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bishop who wrote (82367)	3/28/2001 2:13:11 AM
From: Jim Bishop	Respond to of 150070

UTHR List stock: thestreet.com Some Insiders Are Buying, and He's Naming Names By Bob Gabele Special to TheStreet.com Originally posted at 1:19 PM ET 3/22/01 on RealMoney.com Is it me, or is everybody clamoring for insiders to buy tech? I'm even hearing entreaties from those who wouldn't ordinarily give insiders a second thought. A few weeks back, I mentioned that insiders were buying a number of smaller biotechnology and drug-development stocks. To which more than one kind reader requested -- with varying degrees of civility -- that I name names. So here goes. Among the more robust names, an interesting profile has taken shape at Albany Molecular Research (AMRI:Nasdaq - news), where earlier this year, three insiders exercised options to acquire a combined 62,876 shares. Two of the recent buyers also exercised early last year and then sold modestly over the course of the year. Given that the stock gained more than 200% last year, the sales don't speak well for these insiders' timing. Either way, those previous exercises occurred near the year's lows, and it is exceedingly rare to find insiders exercising options and holding a stock that is trading near all-time highs. In fact, Albany Molecular Research sounds a bit more provincial than it really is. The company, a chemical research and drug discovery outsourcer, was integral in developing allergy blockbuster Allegra and still receives royalties from its sales. Like most all others, Albany Molecular stock has had a rough first quarter, backing off about 30% year to date. If nothing else, the options exercises near the top do little to contradict the notion that the selloff was largely related to the market. Insiders have been every bit as aggressive at drug developer United Therapeutics (UTHR:Nasdaq - news). In all, from Dec. 6 through Feb. 23, six insiders picked up a combined 66,855 shares at $11.38 to $17.63. Leading the pack, Chairman and CEO Martine Rothblatt purchased 55,000 shares. It was Rothblatt's first acquisition since the company's initial public offering in June 1999. The company's CFO, general counsel and vice president of research and development were among the remaining buyers. This particular situation might be instructive for those holding out hope for insider accumulation in the tech sector. Consider that four of the recent buyers purchased stock on the open market at a time when their incentive stock options were underwater. It has long been my contention that insiders holding in-the-money options are less likely to head to the open market for shares. When their options slip underwater, it's a different story. Buying under these circumstances always strikes me as a particularly bold statement. Finally, insiders are also biting at fellow drug-developer Insmed (INSM:Nasdaq - news). All told, from November through January, four executives exercised options to acquire more than 140,498 shares. Chief Executive Geoffrey Allan was by far the most aggressive, picking up roughly 110,000 shares. Of those acquiring in more modest numbers, Vice President Ronald Gunn and CFO Michael Baer acquired just over 13,000 shares apiece, while Vice President Robert Falconer picked up 6,566 shares. Insmed got a shot in the arm a few weeks back when Phase II trials of lead drug INS-1 showed positive results in patients suffering from polycystic ovarian syndrome and dyslipidemia. Both conditions involve insulin resistance (a common feature of diabetes), which is estimated to affect up to 16 million people in the U.S., including up to 6% of women of child-bearing age. Now, there's a few to get you started. And as I said, it's not all bad. Bob Gabele has been tracking and analyzing insider trading since 1978, most recently for First Call/Thomson Financial. This column is not meant as investment advice; it is instead meant to provide insight into the methods of insider trading. At time of publication, Gabele held no position in any of the companies discussed in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Gabele appreciates your feedback and invites you to send any to Bob Gabele . -------------------------------------------------------------------------------- Send letters to the editor to letters@thestreet.com. Read our conflicts and disclosure policy. Order reprints of TSC articles.