Is Alimera Sciences Inc (ALIM) A Good Stock To Buy?

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As industrywide interest jumped, some big names have been driving this bullishness. venBio Select Advisor, led by Behzad Aghazadeh, initiated the most outsized position in Alimera Sciences Inc (NASDAQ:ALIM). venBio Select Advisor had $5.3 million invested in the company at the end of the quarter. Jeffrey Jay and David Kroin’s Great Point Partners also made a $3.9 million investment in the stock during the quarter. The other funds with brand new ALIM positions are Steven Boyd’s Armistice Capital, Anand Parekh’s Alyeska Investment Group, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Alimera Sciences Inc (NASDAQ:ALIM) but similarly valued. These stocks are The L.S. Starrett Company (NYSE:SCX), The Goldfield Corporation (NYSEAMEX:GV), ChinaCache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH), and Alcobra Ltd (NASDAQ:ADHD). This group of stocks’ market caps resemble ALIM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SCX 3 10602 0
GV 3 4411 -2
CCIH 4 1099 4
ADHD 14 28086 -1

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $33 million in ALIM’s case. Alcobra Ltd (NASDAQ:ADHD) is the most popular stock in this table. On the other hand The L.S. Starrett Company (NYSE:SCX) is the least popular one with only 3 bullish hedge fund positions. Alimera Sciences Inc (NASDAQ:ALIM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ADHD might be a better candidate to consider taking a long position in.

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