Don't Forget about Memory Pharmaceuticals...

I really do like searching and hunting for new potential stocks. They may not have that many insider buys or purchases like CHK does, but they would have to have high insider ownership for me to even look at them. Of course I would then analyze Earnings and see if the company had improving quarters. Then I would see how the industry that the stock belonged to was performing, analyze the chart, volume activity...yada yada ya. This was how I did it a few months ago, when I first started getting into this stock game. That is how I spotted VPHM, PARL, CNQ, TLM, GLW, CNX, CHK and many others when they were cheap. Now, with school being the main focus, I do not have that kind of time on my hands. So I have to settle for quicker methods of research. Which is why I settle for insider buys and purchases as a good indicator of a stocks future performance (something that I did not place too much emphasis on in the past). You will notice that some of the stocks I chose, are battered stocks, stocks that have fallen from grace and out of favor. That doesn't mean they are not good choices. It just means that they need a boost to get them up and running again. Which is why I get excited when I see heavy insider or institutional buying in battered stocks. Especially buying from CEOs, VP's and other higher ups. Director buys are good as well, but not as good as CEO buys. Nevertheless, not a single one of these insiders (director or CEO) invests in the company that they work for to lose money...thats the shareholders job! I'm just kidding, but you get the point. These company insiders who are throwing around hundreds of thousands of dollars are not throwing them around just for kicks (unless they like to lose money).

With all that in Mind, I would like to present to you Memory Pharmaceutical Corp (MEMY). Why is that? Lets see, the stock closed at 1.82 on Friday (9/23) and all of a sudden, After Hours (A/H), the stock is up +13% to 2.06?! What is going on?! There is no news, no hint, no nothing to even warrant such a spike in price! So whats up? Somethings up alright! If you notice, a wide variety of company insiders have just purchased stock! And I mean a lot of stock! Close to $7,000,000 worth of stock in one day! Why is that?! I'm thinking that there might be a buy out offer or a merger in the works, and the rumor is out and I believe it may be announced this coming week! My advice is, if you got some money laying around, buy some!