PLUG, FBC, CLSN: Institutional Investors Seeing Value in These Stocks
Plug Power Inc (NASDAQ: PLUG), Flagstar Bancorp Inc (NYSE: FBC) and Celsion Corporation (NASDAQ: CLSN) are moving up along with broader markets. A wide majority of stocks would tend to move in tandem with the broader markets but what sets these stocks apart from the others is the high institutional activity and some amount of insider transactions as well. This institutional activity and insider buying has resulted in a V shaped recovery for most of the stocks.
Apart from the surge in institutional buying, insider transactions at rock bottom prices is another indicator that the stock price has fallen below its intrinsic value and thus, value buying comes into play. Seniors company executives such as CEO CFO etc are interested in selling their holdings at higher prices but they become interested in buying the stock from open market only if the stock is available below the intrinsic value so that sooner or later, they pocket smart gains.
Plug Power Inc (NASDAQ: PLUG) is one such stock which has seen significant increase in institutional buying in the recent months. The stock has seen a very divergent pattern throughout the last year, touching a high of $9 and going down all the way to $1.4. However, it is largely traded in a narrow range in the last three months, especially after the $20 million public offering of stocks and warrants in June. The company makes fuel cell products for industrial and stationary power markets.
Michigan-based Flagstar Bancorp Inc (NYSE: FBC) is a savings and loan holding company and its stock has increased more than 30 per cent so far in October. It started making sense for big investors to start buying in this stock after it dropped from $1.35 in June to $0.45 in September. The stock has a stiff resistance at $0.50 but the level has been crossed convincingly. Since the stock has entered into an uncharted territory, it could move substantially higher from its current price of $0.65 to $1 over the next month provided the economic woes plaguing the market remain on the sidelines.
The stock of Maryland-based oncology drug development company Celsion Corporation (NASDAQ: CLSN) has also recovered substantially from $2.3 earlier this month closing at $2.95 yesterday. There is a huge potential in this stock considering the fact that it was trading above $4 in July. The company is cash rich after raising $18 million in funding in July and has negligible debt on its books. Institutional investors Mangrove Partners and Ayer Capital Management are big shareholders in the company.
Do NOT buy or sell FBC, PLUG or CLSN until you have read everything.
SmallCap Network provides comprehensive research and opinions on FBC, PLUG and CLSN. |
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| Date: | May 20, 2013 | |
| Price: | Free | |
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