Hubert Senters here.
With an insider trade example. In this example, we’re going to walk through Kite Pharmaceuticals ticker symbol is KITE. Kite Pharmaceuticals is dedicated to achieving one of the most ambitious goals of the 21st century in medicine curing cancer. That’s what it says on their website’s home page.
And if the insiders that are buying is any indication of that they’re getting close. The company’s newest drug is known as KTEC Lanting which is kind of a crazy name for drug. It uses genetically modified cells to fight cancer on the biological level. The science is promising so promising in fact that Kite employees are betting their own money on it. Not a single insider had bought the stock in more than three years.
Until a couple months ago when the chairman, President, CFO and three directors all bought big chunks of their stock. The trades ranged from $97,300 to $3.4 million. Now, after those three insiders bought the next month Kite’s new drug was granted fast track approval from the FDA, a process reserved for lifesaving drugs that show substantial promise. It means that the drug will get to market four months faster and the stock is responding.
Once again, the ticker symbol is KITE and shares are up 52 percent in less than two months after the insiders started buying and it could go even higher. This is the power of following insider trades so here is a screen shot example of the chart. Here’s where all the insider buying took place.
And then you can see the price just continued to climb. So insider buying here in a climb in price all the way up in here with a gain of $52.1 percent in a little over two months price action. The power of insider trading.
Hubert.
