Boston, MA 03/14/2014 (wallstreetpr) – TG Therapeutics, Inc. (NASDAQ:TGTX) comes across as a promising stock by most measures. The biotechnology company is not only undervalued, but also undiscovered by many investors yet it is full of strong potential. Perhaps all that you need to know at this juncture is who is buying the stock now or tripling their stake.
There is no doubt that 2013 saw an amazing bull run in the biotechnology, and 2014 is shaping out to be even better than the previous year. Shares of TG Therapeutics, Inc. (NASDAQ:TGTX) experienced a significant jump in the last session, touching a new one-year high at $8.02, and later coming to a close at $7.55, up 2.03 percent.
There are two important developments in this stock that investors keen to discover a winning formula in biotech stocks must have in mind.
Single buyer common stock offering
TG Therapeutics, Inc. (NASDAQ:TGTX) is offering more than 2.7 million shares of its common stock to a single institutional investor. The common stock is being offered at $6.71 per share to Global Healthcare Fund, which is an arm of JPMorgan Asset Management.
The transaction is expected to bring in $18.1 million in gross proceeds and this will be a significant boost to the company’s cash position. However, there is something interesting going on here which you should keep in mind. Look, the fact that more 2.7 million are being sold to a single institutional investor at a price that is premium considering what the price has been in the past month, suggests that the demand for the shares is high and that institutional investors are convinced that the management is executing well.
Jostling for more of the stock
As some institutional investors initiate huge positions in the stock, some can be seen tripling their position and one such investor is Baker Brother. The company currently owns more than 2.2 million shares of TG Therapeutics, Inc. (NASDAQ:TGTX) as of Q4.13 filing report, a significant boost of 266 percent from the 0.6 million stake it had in Q3.13.
So then, it is clear that it is no longer the question of whether there is something in TG Therapeutics, Inc. (NASDAQ:TGTX) to go for, but how big one can acquire the shares when they are still cheap in cost.
