SWK Holdings Corp (OTC:SWKH) seemed like it added some market depth to the volatile and rarely traded stock – the trading volume topped 1.4 million on Wednesday. However, it failed to provide any worth wile price action or follow up activity on Thursday.
The increase in trading volume came shortly after insiders disclosed to have added 400 thousand shares to their baskets. The share price wasn’t affected by this increased trading though and the stock continues to exhibit the inadequate liquidity and heavy risk for traders.[BANNER]
SWK Holdings holds $38 million in the bank, thus satisfying the current market cap, but the firm acts like a shell company and has limited prospects as a long term play for investors as it is right now. The management is looking for acquisition opportunities, but until anything comes up, the stock is sticking to the well defined price channel with just random swings.
The recent purchase of shares by the board members could be a sign of possible deal coming along, but is more likely just a casual stock purchase. With no follow up action, this random spike in activity showed SWKH shares are pretty much ignored by traders.
