Aegerion Pharmaceuticals Inc (fka AEGR)

[surf1944]

5 Stocks With Big Insider Buying

One final stock that has seen some large insider buying is Aegerion Pharmaceuticals(AEGR_), a development stage biopharmaceutical company that engages in the development and commercialization of novel therapeutics to treat severe lipid disorders. This stock is off to a decent start in 2011, with shares up over 12.2%.

This company has a market cap of $280 million and an enterprise value of $242 million. This stock is far from expensive trading at a forward price-to-earnings of 9.9. This is another cash-rich company with $46 million in total cash and just $10 million in total debt, for a net cash amount of $36 million.

Aegerion just recently did a public offering of 4.3 million shares that was priced at $15.50 per share. The company said it plans to use the funds to complete studies on a drug called lomitapide which is targeted to treat a disease that causes very high levels of bad cholesterol.

The CEO recently bought 64,516 shares, or $999,998 worth of stock, at $15.50 per share. This is the fourth time the CEO has purchased shares this year, but this most recent buy was by far the largest.

From a technical standpoint, this stock has fallen hard since late April dropping from a high of $25.92 to its current level of $16 a share. The stock recently hit a short-term low of $14.62, which is a previous support zonefrom back in late March.

If you want to buy this stock, look to add it on weakness and use $14.62 as your mental stop. A move below that level would have me bailing on this name since it would mean the downtrend is not over. If that level does indeed hold, then add to your position once it trades above the 50-day moving average of $17.88, and then add again above $18 to $18.28 a share.

http://www.thestreet.com/_yahoo/story/11173137/1/5-stocks-with-big-insider-buying.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA