Northstar Neuroscience is a biotech company involved with cortical stimulation (brain) for a few different conditions - they're good in the long run, but not important in this respect.  This company is my first real stock investment, so I thought i'd share it with you - i've got $1000 tied up in this @$1.61 a share.  With about 30 million shares, currently trading at just under $2 - I believe it's still a bargain.  They've got a market cap of 47.38m, BUT they've got 85m in assets.  Yeah, it's undervalued (on the basis of book value  - apparently its $3.31 per share, but thats from some random post on a forum).  They don't have any revenue at this point, they're strictly research - burning approximately 20m per year.  Unlike most biotech companies, they're safe for a few years right now.  

This past couple of weeks it has been seen some action, breaking free of resistance in the $1.50-1.60 range (IMO it was being manipulated to be accumulated, but thats another matter).  It closed today at $1.83 but went to $1.98 in after hours - a huge jump considering how boring the stock has been in since it's original fall.  This stock does have dirt on it, a few months ago it was trading in the $9+ range, but it dropped 84% in one day because it failed an FDA trial.  Since then they've had a big change in direction and focused on other conditions for cortical stimulation.  

 However, what really makes it interesting this week is the recent changes in trading inside the company.  In the 2 past weeks the insider holdings has increased from 28% to 34%.  Edit:  forgot to include, someone named Tang in the company bought 587,000 shares last week at $1.71. 

For the imaginative types, if this company were to be bought by another - it would be a fantastic deal.  Just to throw some numbers out there, a $3.80 price per share buyout would nab this company for 100m - only 20m for everything they have and research patents!  Now, how does that $2 per share look to you?

 I'm more interested in what the insiders are doing, and they're buying up lots of stock completely out of the blue.  The stock has been bouncing between $1.50-1.60 since the start of march, then insiders start buying AFTER it goes up?  Look at the acquisitions, shares are being bought up from between $1.70-1.87.  Obviously they don't care as long as it's under $2.  I think they know something we don't, so i'm still holding on this.  A reasonable pricetag for this company would be around $150m, which would be a $5pps.

http://finance.yahoo.com/q/it?s=NSTR

http://www.thelion.com/bin/aio_msg.cgi?cmd=search&symbol=nstr&x=15&y=24

Thanks, sounds good, I'll be sure to chech this one out.

 TANG CAPITAL PARTNERS LP. Long term maybe, but the way it looks right now: doubtful this'll be a contest winner.

Thanks for the info.

they don't have any revenue? so i'm investing in research?

Sorry to resurrect this thread, but i'm still watching it and it's still acting weird.  Type in NSTR here and check out the purchases by Tang.  http://insidercow.com/

Also, it's been quite bearish the past week showing tons of signs that it's going to go down.  It has been pushed down to todays close of $1.77, however it was pushed up to $1.98 in after hours trading - 21 cents!   This is the second time in the past 2 weeks that it has been pushed up 12% afterhours, but I don't really know what to make of it.  Either way insiders or not, it has been heavily accumulated in the past month and will be on it's way up.  It has $3 cash per share, so it's worth much more than it is now for sure. 

http://finance.yahoo.com/q?s=NSTR

After Hours: 1.98 0.21 (11.86%) as of 4:13PM ET on 04/15/08

Strange

Thanks 4 the tip

Oh, and Tang purchased another 120,000 shares today, check that insidercow link from earlier in the thread