If I inspect a company’s Form 4 filings and do not see significant insider purchases, I get out my red pen and scratch it off my list. After all, if the stock is not good enough for the CEO or chief biologist, why is it good enough for me?
Finally, the company had better be making some headlines. If its public relations team does not have the Street talking and spreading rumors, my money is better off somewhere else. Never forget, one headline can mean the difference between a gain and a loss.
Not that one, or that one, but THAT one!
With such rigid guidelines, it is not every day I run across a winner. But when I do, I get excited. It means somebody is about to get rich.
The company you need to know about is a small biotech from Memphis called GTX, Inc. (GTXI:NASDAQ). Founded in 1997, the company’s hard work is just now beginning to pay off. This one is about to go from a small fish in a big pond to a competition-devouring piranha.
GTX specializes in men’s health drugs. No, not the small blue pill, but the same general part of the body. One of the company’s most promising late-stage medicines is toremifene citrate, or Acapodene. It is used to help treat patients with advanced prostate cancer.
Without getting too scientific, typical prostate cancer treatments are very hard on the body. They lower critical hormonal levels, destroy bone mass, and even degrade the heart. GTX’s potential new drug helps to eliminate many of those side effects.
With nearly a million men currently undergoing treatment, Acapodene has a lot of potential. It is expected to hit the market later this year and bring the company as much as $400 million in annual revenues. Right now, GTX pulls in just $7 million.
But remember I said I want at least two late-stage drugs in the pipeline and I want the Street to be talking. Acapodene will need some company if it wants to get my nod. It comes under the name Ostarine. Although it will be a bit longer before it hits the market, it offers even more potential than Acapodene. This is the drug most analysts and industry experts have their eyes on. Rumors are already flying… I love it.
All of those potential drugs do not mean a thing, unless insiders are buying. GTX more than meets my requirements.
So far this year, company insiders have shelled out more than a million dollars of their own money to get their hands on shares of the company. If they are willing to place that much money on the line, you know they trust their company and its pipeline. And so can you.
The nation’s economy is far from sure-footed. But that does not mean you should grab a shovel and bury your savings in the backyard. There are plenty of profit opportunities remaining.
You merely have to stick with the essentials and do your homework. Few companies meet my strict requirements, but when one does, I am positive it will be a winner.
Take a good, close look at GTX and make your move. You will be glad you did.