Shares of Corindus Vascular Robotics Inc.(CVRS) rocketed 76% toward a 4-year high today, after the robotic-assisted vascular interventions company worked a buyout deal valued at $1.1 billion by Siemens Healthineers AG Siemens is paying $ 4.28 a share in cash for Corindus, which is 77% above Wednesday’s closing price of $2.42.
So how in the world could you have known to buy this stock?
Med-tech stocks can be tricky – especially small caps like Corindus.
The limited float keeps them off Wall Street’s radar since these trades are unlikely to “move the needle” of multi-billion dollar firms.
This also means few, if any, analysts track the stock. But… We have a secret weapon!
Insider Trading… His name is Louis Cannon a Director of the company and a regular buyer of the stock since March 2017, but always with small trades – $5k, $13k, $30k – nothing of any real significance. But back in March our Insider Trader went big picking up 573,398 shares at a cost of $791,840. In addition to being on the board of directors, Mr. Cannon is also the founder of BioStar Capital – a boutique investment firm specializing in breakthrough medical technologies.
This gives him both inside access to key information as well as investing expertise in stocks like CVRS. Clearly Louis knew what he was doing because today shared jumped 77% on the day and nearly 200% since we issued a buy on this stock in March when we saw Mr Cannon’s trading activity.