La Jolla Pharma Co. LJPC – Form-4 Bottom Play
One of the top scenarios we routinely scan for on a regular basis, is a Form-4 Bottom Play. Whenever we witness a stock trading at or near its annual lows being purchased in large amounts on the open market by its own directors, we can feel fairly certain that their confidence in a potential recovery is high.
LJPC is a fantastic example of this at the present time. We’ve just noticed more than 12M shares being purchased by a director in three separate transactions over the past few days, amounting to roughly $6.8M, or nearly five percent of LJPC’s total market cap. (>>View Transactions)
We’ll now treat this as any other bottom watch play, and monitor the stock for a recovery in coming sessions.
Kandi Technologies, Inc. KNDI
We signaled KNDI in yesterday morning’s extended watchlist, and the stock managed a solid move on the day for our first session of observation on the stock since early in the fall.
KNDI traded in a daily range from a low of 4.60 to 5.63, a modest but solid 22% intraday rise, and a good start on a more significant push. We’ll look for KNDI to test its previous resistance in the mid-$6 area going forward.
Fresh Options Ideas:
KBH 01/18 $22 & $23 Calls
BBBY Weekly $13 & $13.50 Calls