Is BioSpecifics Technologies Corp. (BSTC) A Good Stock To Buy Right Now?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as BioSpecifics Technologies Corp. (NASDAQ:BSTC) but similarly valued. We will take a look at Compugen Ltd. (USA) (NASDAQ:CGEN), American Public Education, Inc. (NASDAQ:APEI), Trinity Biotech plc (ADR) (NASDAQ:TRIB), and CONN’S, Inc. (NASDAQ:CONN). This group of stocks’ market values match BSTC’s market value.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $22 million in BSTC’s case. American Public Education, Inc. (NASDAQ:APEI) is the most popular stock in this table. On the other hand Compugen Ltd. (USA) (NASDAQ:CGEN) is the least popular one with only 5 bullish hedge fund positions. BioSpecifics Technologies Corp. (NASDAQ:BSTC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard APEI might be a better candidate to consider taking a long position in.

Disclosure: None