Thursday, June 27, 2013

Small-Cap Biotech Poised for a Quick Double-Digit Pop: INSM

When it comes to investing in young and unproven biotech stocks, you want to look for a few key characteristics. First, the company should be targeting a market for which current treatments are less than ideal. Second, this potential market should be fairly large in size and scope. And third, you want to focus on companies that have already established compelling, robust results in clinical testing trials.
New Jersey-based Insmed (NASDAQ: INSM) checks all those boxes. Better still, a clear imminent catalyst exists to send this stock to fresh highs. With a market cap of roughly $350 million, Insmed qualifies as a small cap, but it is hardly a well-kept secret. But with a few good breaks on the regulatory front, this company's market value could easily -- and quickly -- tack on millions more. Notably, the stock has slumped more than 20% since hitting a new 52-week high in late May, providing a fresh entry point. (more)

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