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How to Understand a Complex Trading Opportunity

I come across a lot of companies that clear my Stock Surge Indicator (SSI) screening system. Each and every day, I’m scanning the thousands of stocks in the market and looking for the next trading opportunity.

When I get my preliminary list of companies and their stocks, I then dig in and go through each of my SSI criteria to see how they made the initial screen so that I can make more cuts.

From there, I come up with my final stocks for the day to do even more analysis on them.

To get the rundown on my SSI, I encourage you to check out my special report: The Magic of the Stock Surge Indicator. And to see my current stocks on my Watch List, click here.

One of the big challenges is that I come up with stocks now and again from companies that can be a challenge to understand their actual potential for success. This is especially the case when I find a great prospective biotechnology company.

But I do know that if a biotechnology company has the cure for a fatal illness and gets through the US Food & Drug Administration (FDA) testing regimen, then it can really almost print money. 

This risk/reward of getting an understanding of a company and getting to invest in that company as it goes from its labs to a mega-lifesaving product is hugely in favor of the reward.

If I can have a dependable way to know the probability of success with its products and the FDA, then I’m good to go.

I’ve found that way to get to the reward, and I want to share that with you today…

Cancer Is a Big Target

Cancer takes many forms in the human body and attacks various organs and systems that are crucial for life. It works to replicate its cells while it attacks the body – keeping itself alive while killing its host.

This reads like a horror movie – and it is – but in real life.

The immune system is one of the major lines of defense against cancer. As cancer is an unwanted external killer to the body, the immune system gets triggered to fight it. And in doing so, it also leads to our potential demise in the process.

Getting the immune system to recognize initial cancer cells and to block their work in embedding into human systems is one of the cutting-edge tools to fighting cancer.

The company I found recently that is making headway right now is PDS Biotechnology (PDSB)

Based in Berkeley Heights, New Jersey, this smaller company with only dozens of employees and contractors is working on utilizing the human body’s immune system to fight cancer in its early stages. And its technology utilizing human T-cells shows a great deal of promise.

To read more about the laboratory work and clinical results, the company’s main site is www.pdsbiotech.com.

Being cutting edge, the company is purely in development and testing mode. It has gobs of cash and negligible debt, so it has the wherewithal to work on its life-changing and life-saving products and treatments.

But what gets me to a comfort level of getting a handle on the risk/reward in favor of the reward is who is buying and owning the company’s shares as it goes through its transformation as a lifesaver.

Who Buys & Owns Matters

PDS Biotechnology has gotten through to me, as it has plenty of bold-faced names in the biotechnology space that have their own money in this company – believing in its capabilities.

What really gives it an edge in the market is that its insiders own a chunk of the company right now amounting to over 5.00% of the outstanding shares. And they have been buying more stock in their company – adding some 4.96% to their holdings as of July 11 filings.

And this insider buying has been recently taking hold as it is getting closer to its exit strategies for its prime life-saving products.

PDS Biotechnology Insider Trades & Price — Source: Bloomberg

The stock has gone from the low single-digits into the double-digits. And this is building up its market capitalization to get more notice from various specialized investment funds. 

Insiders putting more of their own money into the company’s stock is also helping this awareness and more institutional fund investment.

PDS Biotechnology Total Return — Source: Bloomberg

The stock has begun to really move over the past year as just noted. It has already jumped in price by over 259%. But insiders see that there is more to go for this company and its stock. 

And insiders are buying – adding to my confidence in the company’s prospects and the stock’s potential.

While there is lots of upside, I’ve suggested a stop at $9.00.

An Insider Tip for You:

As I discussed yesterday in Stock Surge Daily, I am ramping up my insider stock-buying research that is part of my Stock Surge Indicator (SSI)

This week, I hosted a live coaching event that was all about insider buying and how it works to find stocks that are set to rally higher and stronger.

I have developed a new product that we’ve recently launched here at Traders Agency called Insider Edge

It’s all about one of my common-sense tools that finds stocks with big surges in the works that are tipped off by insiders’ buying their own shares. 

To get the full rundown on how to profit by buying stocks that insiders are buying right now, check out my latest research at Insider Edge.  Click here to watch

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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