Okay kiddo, sometimes people who work at a company buy some of their own company's shares when they think it will do well. This is called insider trading and it can tell us if the people working there are confident about the future. There was an article that talked about three small companies that cost less than $2 per share, and some important people bought more shares in those companies. They must believe these companies will grow and make them more money. Read from source...
1. The title is misleading and clickbaity, as it implies that insiders are only buying two other stocks besides Immunic, when in fact they bought three stocks - OPKO Health (OPK) and Fresh Tracks Therapeutics (FRTX).
2. The article starts with a irrelevant statement about the Dow Jones index closing lower by over 20 points on Wednesday, which has no connection to the insider trading activity or the performance of the penny stocks mentioned.
3. The author does not provide any evidence or sources for their claim that insider purchases indicate confidence or concern around the company's prospects, which is a subjective and unproven assumption.
4. The article fails to mention the significance of the number of shares bought by Frost Gamma Investments Trust in OPKO Health, which amounts to 50% of its total outstanding shares, suggesting a potential takeover or significant influence over the company's decisions.
5. The article also omits the important detail that Fresh Tracks Therapeutics has been involved in a reverse split and changed its name from Aclaris Therapeutics (ACRS), which could affect its market capitalization and share price.
- Fresh Tracks Therapeutics (OTC:FRTX): Buy, high risk, potential for significant growth if clinical trials are successful. The company is developing a treatment for rare genetic disorders using gene therapy, which has shown promising results in preclinical studies. However, the field of gene therapy is still in its infancy and faces many challenges, including regulatory hurdles, ethical concerns, and technical difficulties. The stock price is volatile and subject to wide fluctuations based on news and announcements from the company or other players in the industry.
- Immunic (NASDAQ:IMUX): Buy, moderate risk, strong insider buying indicates confidence in the company's pipeline of drug candidates for autoimmune diseases and cancer. The stock price has been range-bound for the past year but recently broke out to new highs on positive data from a phase 2 trial of its lead candidate, IMU-838, for ulcerative colitis. The company is planning to initiate phase 3 trials in 2021 and expects to file for FDA approval by the end of the year. However, there are still risks associated with drug development, including clinical failure, regulatory delays, and competition from other therapies.
- OPKO Health (NASDAQ:OPKO): Sell, high risk, insider selling indicates lack of confidence in the company's ability to generate positive cash flow or profit from its diversified businesses, which include diagnostics, pharmaceuticals, and biotechnology. The company has been losing money for the past several years and has a significant debt burden. The stock price has declined steadily since 2014 and is currently trading at less than $1 per share. There are no clear catalysts for a turnaround in the near future, and the company faces legal issues related to its former CEO's involvement in an insider trading scandal.