Connect with us

Stock Picks

Small Cap Trading Frenzy Drives Penny Stocks In October

Published

on

Speculative fervor took a boost in September trading as the Russell 2000 small cap index broke into a bull market, driving penny stocks, according to Investopedia. The top two performers in September’s penny stocks to watch list, RADA Electronics Industries, Ltd. and 22nd Century Group, Inc., sustained their top positions in October, an unusual occurrence.

Three of the other top September stocks, Intrepid Potash, Inc., Moleculin Biotech, Inc. and Zynga, Inc., gained higher positions in October, reflecting the continued strength of biotech and technology.

The technical conditions supporting these equities should persist through the fourth quarter and into 2018, portending multi-year highs for many of these issues.

Source: Investopedia

1. RADA Electronic Industries, Ltd. (RADA)

RADA Electronic Industries, Ltd. (RADA), a defense electronics system of advanced electronic systems for airborne and land applications, sustained its top spot for the second consecutive month.

RADA Electronics broke out to a 2-year high during the period.

After joining Nasdaq in the 1990s, the stock suffered a multi-decade decline. It ground out a series of lower highs and lows through January 2016’s all-time 54-cent low.

The stock spent 16 months moving sideways in a narrow basing pattern before turning higher in May 2017 and rallying back to 2016 resistance at $1.78.

The stock cleared major resistance at $2.25 in July 2017, entering an uptrend that’s now filling the July 2015 gap between $2.50 and $3.60. Buying pressure remains strong, raising odds it will test 2015 resistance near $4.00.

Following capital raising activity with institutional investors, the company recently converted loans to equity and increased its net cash position by $13.3 million while reducing ongoing annual interest payments by approximately $250,000.

On Aug. 21, RADA completed a $10 million capital raise under an existing shelf prospectus, issuing 4,604,500 shares. The investors included leading Israeli institutional investors, such as Yelin-Lapidot Investment House, More Investment House, Noked Capital, and The Phoenix Insurance Company.

From Aug. 17 until Sept. 5, DBSI, the company’s primary shareholder, exercised warrants and converted a loan to equity. It sold a portion of the shares gained to institutional investors such as Optimus Fund and others. On a net basis over the period, DBSI increased its shareholding in RADA by 1,168,782 shares to approximately 12.2 million shares, representing 35% of the company’s equity on a fully diluted basis.

Source: Investopedia

2. 22nd Century Group, Inc. (XXII)

22nd Century Group, Inc. (XXII), a plant biotechnology company that provides tobacco harm reduction and development of proprietary hemp/cannabis strains, rose from the number three spot in August to number two in September. The stock posted its highest high since July 2014.

In 2013, the stock broke out above multi-year resistance near $1.50, rallying to a record high a few months later at $6.36. It then began a persistent decline through August 2015 before finding support at 56 cents, followed by a bounce to $1.75.

The stock traded within these boundaries for 22 months, bouncing at support three times and reversing at resistance in equal measure. The price returned to that level a fourth time, improving odds for a breakout that could double the price in the year’s second half.

22nd Century Group found support near 70 cents in the second half of the year, testing that level three times ahead of a March 2017 uptick that has now reached ranged resistance. A breakout over $2.00 should draw strong buying interest favoring a high percentage rally back to its three-year high.

The stock hit its highest high since 2014 on August 7, 2017, and pulled back to the 20-day SMA, testing support around $2.00. This price level could offer a platform for continued upside that reaches longer-term resistance near $4.00.

The stock joined the Russell Microcap Index four months ago, when FTSE Russell reconstituted its U.S. and global equity indexes.

Membership in the Russell Microcap Index signifies automatic inclusion in the value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

22nd Century Group focuses on genetic engineering and plant breeding that allows the increase or decrease of nicotine levels in tobacco plants and cannabinoids levels in cannabis plants. Its primary goal for tobacco is to lessen the harm caused by smoking. The primary goal for cannabis is to develop proprietary hemp/cannabis strains for new medicines and agricultural crops.

Source: Investopedia

3. Intrepid Potash, Inc. (IPI)

Intrepid Potash, Inc., the number four penny stock to watch in September, rallied 24% to a 23-month high, jumping to the number three spot in October, displacing Trilogy Metals, Inc.

The only U.S. producer of muriate of potash, Intrepid Potash moved from the number nine spot in August to number four in September.

In 2010 the stock suffered a decline that reached an all-time low at 65 cents in March 2016. The stock then rebounded above $1.50 in June before a December 2016 breakout that soon stalled at $3.04.

A stair step bounce reached a 21-month high at $3.93 on Aug. 3, 2017, giving way to a rectangular consolidation with support near $3.15.

Intrepid generated a second quarter net loss of $5.9 million, or $0.05 per share, delivering a first half net loss of $19.6 million, or $0.19 per share. This marked an improvement over the net losses of $13.4 million, or $0.18 per share, and $31.8 million or $0.42 per share, in the second quarter and first half of 2016, respectively.

Improvements in year-over-year net loss per share were driven in part by a gain in outstanding shares from the March 2017 secondary offering.

Consolidated gross margin advanced to $3.7 million and $0.8 million in the second quarter and first half of 2017, respectively, against the prior year. Improvements were due to lower cost solar potash production and higher average net realized potash pricing that offset lower average net realized sales prices for the product, Trio.

Cash provided by operating activities rose year-over-year to $9.7 million and $11.5 million for the second quarter and first half of 2017, respectively. Increased cash flow was due to strong spring demand, increased potash prices, and the elimination of costlier conventionally mined potash from the production profile.

Source: Investopedia

4. Moleculin Biotech, Inc. (MBRX)

Moleculin Biotech, Inc. (MBRX), the number seven penny stock to watch in September, moved to the number four spot in October,

The stock went public in June 2016 at $8.99 and began a downtrend that continued to post new lows into May 2017 before it bottomed out at 71 cents. A June test held support, ahead of an uptrend that completed a high volume base breakout which saw the stock rally to an 8-month high at $3.75 by the month’s end.

A pullback in July found support at the 50-day EMA, causing a bounce to range resistance, followed by a decline that could attract strong buying and continued upside toward $6.00.

The company recorded a net loss of $3.3 million in the second quarter of 2017 for the change in fair value on revaluation of its warrant liability associated with warrants issued in conjunction with its stock offering in February 2017.

The company recorded a gain in the second quarter of 2017 of $1.2 million related to expiration of warrants issued as part of the February 2017 stock offering.

The net loss for the three months ended June 30, 2017 was $2.3 million, including non-cash income of $1.2 million related to a gain recognized on the expiration of warrants, which was offset by a non-cash expense of approximately $3.3 million on the change in fair value of the company’s warrant liability. The net loss also included additional noncash charges for $0.1 million for stock based compensation and other stock based expenses.

As of June 30, 2017, the company had $9.3 million in cash and cash equivalents compared to $5.0 million at Dec. 31, 2016. Through June 30, 2017, $3.2 million in cash was received from the exercise of warrants issued in the February public offering. Cash used in operations was $3.4 million for the period ending June 30, 2017.

Source: Investopedia

5. Zynga, Inc. (ZNGA)

Zynga, Inc., the number 10 penny stock to watch in September, moved up to the number five spot in October.

A company whose mission is to connect the world with games, Zynga went public in December of 2011. The stock reached an all-time high at $15.91 in March 2012, then dropped in a straight line to $2.09 in November, ahead of a bounce that stalled near $6.00 in 2014.

The stock found support at the 2012 low in the first quarter of 2016, then turned higher, rallying to a three-year high in June 2017. Price action since then made a symmetrical triangle on top of the 200-week EMA.

The company achieved record mobile revenue of $179.9 million and bookings of $181.6 million in the second quarter, with revenue up 30% year-over-year and bookings up 33% year-over-year.

Mobile commerce now represents 86% of total revenue and 87% of total bookings, respectively. Mobile online game revenue was up 39% year-over-year, and mobile user pay bookings were up 45% year-over-year. The company’s mobile audience reached 19 million average daily active users, up 28% year-over-year and the strongest since Q4 2014.

GAAP operating expenses for the quarter were 67% of revenue – down from 73% of revenue for the same period in the second quarter of 2016, while non-GAAP operating expenses were 58% of bookings – down from 68% of bookings a year ago.

The company recently delivered its first quarter of GAAP pre-tax profit since Q4 2012, due in part to progress in improving operating leverage and the lowest quarter of stock-based compensation expense in more than three years.

The company generated operating cash flow of $37.8 million, which was the best quarterly performance in five years.

Source: Investopedia

6. Xplore Technologies, Corp. (XPLR)

Xplore Technologies, Corp., which manufactures tablet PCs, declined from a high at $100 in 2010 to $3.05 in 2013. The stock entered a recovery wave that stalled near $7.50 in 2014, before failing to test that level in 2015. The stock collapsed in June 2016 before finding support at an all-time low at $1.54 in June 2017.

The stock recovered above the 2013 low in August, then fell into a symmetrical triangle which could yield a vigorous rally up to 2015 resistance at $6.15 in the next few months. A buying spike above $3.70 could set that recovery into motion.

The company’s mobility solutions are designed for the energy, utilities, telecommunications, military, manufacturing, distribution, public safety, health care, government and field service sectors.

For fiscal quarter one for 2018, ending June 30, 2017, the company reported revenue of $20 million, a 21% gain year over year and a 30.9% gross margin. EBITDA was $839,000 compared to $1.1 million in the first quarter of 2017. GAAP net income was $239,000.

Source: Investopedia

7. Plug Power, Inc. (PLUG)

Plug Power, Inc., a manufacturer of fuel cells, sold off from a split-adjusted $1,565 in 2000 to an all-time low at 12-cents in 2013. The stock turned higher in March 2014, but stalled at $11.72 before falling to 83 cents in March 2017. In the last six months, the price spiked to $2.70, before suffering another fall. A breakout should target the May 2014 low at $3.65, which would mark a high percentage rally from the current level.

The Plug Power plant in Latham, N.Y. has ramped up manufacturing to deliver third quarter production, which will be the largest quarter in the company’s history, with an estimated 10 GenKey hydrogen fuel sites and nearly 3,000 GenDrive units to be deployed.

In addition to the ramp up, the second quarter 2017 saw continued efforts to improve he business model, boost margins and expand its customer base.

The company kicked off the second quarter signing a strategic GenKey agreement with Amazon, which will generate about $70 million in revenue for 2017. On July 21, the company announced an agreement with Walmart to provide GenKey hydrogen fuel cell energy solutions to 30 more sites in North America over the next three years. Ten of these sites were contracted and scheduled to be finished by the end of 2017.

Source: Investopedia

8. Durect, Corp. (DRRX)

Durect, Corp., a biopharmaceutical company developing therapeutics based on its epigenetic regulator program and proprietary drug delivery platforms, posted an all-time low of 61 cents in November 2012 before embarking on an uptrend that topped out at $3.42 in June 2015. A subsequent decline unfolded in multiple waves, ending at a 2-year low in April 2017 followed by a recovery that stalled at resistance near $2.00 in July.

The stock has since recovered, finding support at the 50-day EMA and challenging the second quarter high.

In mid October, the company reported that Persist, the Phase 3 clinical trial for its Posimir pharmaceutical, did not meet its primary efficacy endpoint of reduction in pain on movement over the first 48 hours after surgery as compared to standard bupivacaine HCl. While results trended in favor of Posimir versus the comparator, they did not achieve statistical significance. Posimir is an investigational drug candidate being developed for the treatment of post-surgical pain.

Posimir is an investigational extended-release depot utilizing Durect’s patented Saber technology intended to continuously deliver bupivacaine to the surgical site for 72 hours to provide up to three days of continuous pain relief after surgery. Posimir is a drug candidate under development and has not been approved for commercialization by the U.S. Food and Drug Administration or other health authorities.

Source: Investopedia

9. Microvision, Inc. (MVIS)

Microvision, Inc., a provider of ultra-miniature projection display and sensing technology, topped out at a split-adjusted $548 in 2000 before entering a downtrend that continued into a 2012 low at $1.11.

A 2013 bounce to $3.49 carved posted resistance, ahead of multiple reversals that have outlined a rectangular basing pattern. The stock rebounded in October 2016, entering an uptrend that’s has reached the upper half of its persistent trading range. The stock broke out to a 22-month high in September and has since settled near $2.75, signaling an upside that could reach the 2015 high at $4.23.

The company announced in August that it sold 1.5 million unregistered shares to a private investor who is also a current shareholder at a price of $2.10 per share, for aggregate consideration of $3.15 million. Microvision intends to use the proceeds from the issuance for general corporate purposes.

Microvision’s display and sensing solution can be adapted to an array of applications and form factors. MicroVision’s business model and product line offering includes display and sensing engines, licensing its patented technology and selling components to licensees for incorporation into their scanning engines.

In September, Microvision and WPG Holdings, a distributor of semiconductor components in Asia, entered into an agreement for distribution of Microvision’s line of PicoP scanning engines across Asia.

Source: Investopedia

10. BioDelivery Science International, Inc. (BDSI)

BioDelivery Science International, Inc., a pharmaceutical company with a focus on pain management, broke above 7-year resistance at $8.26 in 2014, then rallied to an all-time high at $18.48 a few months later. A pullback into 2015 triggered a failed breakout, delivering a decline that continued into a November 4-year low at $1.50.

The stock tested that level in April 2017 and turned higher, supporting an uptrend to a 52-week high at $3.60 in July. The stock fell in September, finding support at the 200-day EMA. It could bounce back to the third quarter high.

The company announced in September that Health Canada granted market authorization to formally transfer the Drug Identification Number (DIN) ownership of Belbuca (buprenorphine) buccal film in Canada to BDSI’s commercial partner, Purdue Pharma in Canada. This approval triggers a milestone payment to BDSI.

Belbua incorporates BDSI’s BioErodible MucoAdhesive (BEMA) drug delivery technology and is the only long-acting opioid that uses buccal film technology to deliver buprenorphine for patients living with chronic pain. Belbuca was approved in Canada in June 2017 for the management of pain severe enough to require daily, continuous, long-term treatment and that is opioid-responsive and for which alternative options are inadequate.

Technology and biotechnology highlight October’s penny stock list while the recent Russell-2000 breakout should benefit an assortment of low-priced stocks in the fourth quarter. Nevertheless, this group remains speculative, requiring aggressive risk management.

Penny stocks require investors to make some guesses about the future. Very few such stocks have a sufficient track record to indicate they will prosper. At the same time, the stocks on this list are in significant industries and have the potential to be vital players in their industries.

Featured image courtesy of Shutterstock.

 

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.9 stars on average, based on 8 rated postsLester Coleman is a veteran business journalist based in the United States. He has covered the payments industry for several years and is available for writing assignments.




Feedback or Requests?

Stock Picks

Stock Picks: ADM and CELG

Published

on

The S&P 500 (SPX) continued its drop as it closed yesterday, June 18, 2018 at 2,773.75. We maintain our bullish outlook despite this slight dip. This brief pullback is most likely setting up the index for a higher low.

As SPX remains bullish, let’s look at stocks that show promise.

ADM – Archer-Daniels-Midland Company

The Archer Daniels Midland Company (ADM) is an American global food processing and commodities trading corporation.  Founded in 1902, they now have more than 270 plants and 420 crop procurement across the globe. The company processes and manufactures vegetable oil, protein meal, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients.

Technical analysis show that ADM is about to take out resistance of 47. This would trigger the large inverse head and shoulders reversal pattern on the weekly chart. To increase the odds of a successful breakout, the stock must generate volume of at least 7.2 million shares on the daily chart. Those who bought the higher low of 40 are likely to take profits at the resistance. ADM needs buyers to absorb the selling pressure.

Furthermore, fundamental analysis reveal that the trailing twelve months (TTM) price to earnings ratio (PE ratio) of ADM is 15.93.  The stock appears undervalued considering that it has a five-year maximum of 26.46 and an average of 17.46. Plus, recent earnings report beat expert estimates. Based on these figures, the stock has some room to grow.

The strategy is to buy the breakout at 47 as long as the pair generates the required volume. Once breakout is complete, bulls have the momentum they need to climb to our target of 60.

The process may take more than three months.

Weekly ADM Chart

Monthly ADM Chart

As of this writing, the Archer-Daniels-Midland stock (ADM) is trading at 46.19.

Summary of Strategy

Buy: Buy the breakout of 47 after the pair generates 7.2 million volume on the daily chart.

Target: 60

Stop: Close below 45 after the breakout.

CELG – Celgene Corporation

Celgene Corporation (CELG) is an American biotechnology company founded in 1986. It discovers, develops and commercializes medicines and therapies for the treatment of cancer and inflammatory diseases. In their product portfolio are REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA), THALOMID (thalidomide), and the epigenetic modifier ISTODAX. Celgene’s subsidiaries include, among others, Juno Therapeutics, Impact Biomedicines, Inc., Signal Pharmaceuticals, and Pharmion Ltd.

Technical analysis show that CELG appears to respect support of 75. This view comes after the pair has managed to stay above the support for the last four weeks. This is because bulls are starting to show up. The significant rise in volume in May 2018 indicates that bulls are buying the stock. On top of that, the stock is almost oversold, suggesting the possibility of a bounce.

In addition, fundamental analysis reveal that CELG’s trailing twelve months (TTM) PE ratio stands at 21.88. The stock appears fairly valued but it has a five-year maximum of 64.24 and an average of 44.44. Moreover, the company’s recent earnings report beat analyst estimates. Considering these figures, CELG has some upside potential.

The strategy is to buy on dips as close to 75 as possible. If bulls preserve the support, they may spark a rally to our target of 98.

The process may take more than three months.

Weekly CELG Chart

Monthly CELG Chart

As of this writing, The Celgene Corporation stock (CELG) is trading at 77.73.

Summary of Strategy

Buy: As close to 75 as possible.

Target: 98

Stop: Close below 74.

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 181 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




Feedback or Requests?

Continue Reading

Stock Picks

Stock Picks: PANW, TCRD, EVLV

Published

on

By Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets

 

In our latest reviews, we highlighted the importance of insider transactions, which may lead to very high yield in the respective stocks. Today, we will again review the stocks with high insider activity. We won’t consider biotech companies here, as they may be very risky.

Palo Alto Networks (NYSE: PANW)

Number one by trading volume is Palo Alto Networks, quoted as PANW on NYSE. It belongs to the Technology (Networking & Communication Devices) sector. The insiders bought shares worth $13,380,262 in June.

Palo Alto Networks was founded in 2005 and is based in Santa Clara, California. It specializes in developing cyber security platforms for business throughout the world. As of now, PANW caters to over 50,000 customers in 150 countries.

Palo Alto Networks is a large company, although its IPO took place as recently as in July 2012.

In 2017, its earnings amounted to $1.8B, which is 28% more than in 2016. Through 2011-2016, Gartner named Palo Alto Networks as the leader in cyber and computer security. In 2016, Bay Area, an SF Business Times agency, named Palo Alto Networks as ‘the best place to work at’. Currently, over 5,100 people are employed with PANW.

Arora Nikesh, PANW CEO, bought shares worth $13,380,262 at $198.79 to $216.07. Curiously enough, Nikesh became CEO on June 6, and began buying shares as soon as on June 8. Before coming to PANW, Arora Nikesh was Executive Director at Google, and sold some Google shares in April.

It looks like Mr Nikesh got some free capital after selling Google and wanted to invest it as soon as possible. Eventually, after becoming CEO at Palo Alto Networks, he decided to buy some shares at his new company.

Financially, PANW is very reliable, with all latest earnings reports exceeding expectations of both the management and the analysts.

Over the last week, the stock broke out its historic resistance at $200 and is currently still growing.

On D1, the price broke the 200-day SMA as early as in mid 2017, and ever since there have been no resistance that could stop it. The ascending trend is still here to stay; with the record highs hit, there is no immediate resistance, while the support is at $200.

Meanwhile, the short float is as low as 4.93%.

THL Credit (NASDAQ: TCRD)

THL Credit, quoted as TCRD on NASDAQ, is our number two for today. This company belongs to the Financial (Asset Management) sector. The insiders bought shares worth $848,922 in June.

THL Credit was founded in 2009, and is headquartered in Boston, Massachusetts. This investment firm manages a total of $12.1B. THL Credit has regional offices in Chicago, Dallas, Los Angeles, and New York City. The company majorly invests funds into mid-price securities, which are chiefly stocks of the companies with a yearly turnover of at least $25M. THL Credit does not invest into startups or companies with large debts. The initial investment amount is $10M to $25M.

TCRD Q1 earning reports came positive, with a revenue of $16.7M; still, the stock price did not go up, as the analysts had expected the earnings to be at $18.3M. When the reports came out, the stock price went down by 13%. It may seem strange, as good earnings usually should mean the stock price rise, but, in practice, good news does not always lead to this.

Insider transactions were made by the Chief Operations Officer, Olson Terrence, who bought some THL Credit shares as early as in Sep 2017; by then, the price was $9 per share, and the total amount was $17,579. The next SEC report by Terrence came in March 2018, with shares worth $10,263. On the same day, two other board members bought shares worth $136,680 at around $8.20.

Terrence continued buying shares on April 16, and such buys occurred nearly everyday, up to now, with the minimum amount of $60,000 and the maximum at $139,000. We may soon learn the reason for such massive buys by Olson Terrence, as no other board member did it.

Technically, there is an descending trend, with the price being below the 200-day SMA. However, there is also a consolidation pattern formed since March between $7.70 and $8.00. On June 7, THL Credit broke out the support at $8.00 but failed to go through the resistance at $8.40, and is currently testing the upper boundary again.

EVINE Live (NASDAQ: EVLV)

EVINE Live (NASDAQ: EVLV) takes the third place today. This company belongs to the Services (Catalog & Mail Order Houses) sector. When it comes to insider transactions, it falls behind the leaders, with the total amount of just $52,572.

EVINE Live was founded in 1990 and is headquartered in NYC. The company focuses on selling goods via web, TV, mobile apps, and social networks. Through EVINE Live, one can buy jewelry, home appliances, textile, kitchenware, accessories, footwear, etc. The company has access to over 86M of homes through television, while also offering their products on evine.com.

EVINE Live issued its Q1 earnings report on May 30. The net sales came at $156.50M, which is 0.1% more than in Q1 2017, when the sales were $156.30M. However, the increase in sales did not help the company to make any profit, and its loss for Q1 2018 was $3M, which is 7% more than in Q1 2017. Overall, Q1 reports are far from optimistic.

However, two board members did buy shares, although the amounts are not that high, those being $6,032, $22,834, and $23,706. Before that, insiders bought shares as long ago as in Dec 2017, and the share price did not go up. What really matters here, though, is the current price, which is just $1.18; as long as it goes up by just 2 or 3 dollars, the yields will get doubled or tripled. Perhaps this is the very reason why the insiders bought the shares, while there may be some other reasons for that, of course.

Back in 1998, EVLV price broke out the 200-day SMA and had been growing for around two years. The price went from $4 up to $65, with the yield being 1,500%, although it had been trading for long below $5. This may repeat any time in the future.

Currently, the price is making its second attempt to break out the 200-day SMA and form an ascending trend. The support is at $0.90, and the immediate resistance lies at $1.60.

Short positions are scarce, with the short float being below 1%.

 

Disclaimer

Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 3 rated postsHaving majored in both Social Psychology and Economics, Dmitry went on to continue his education in post graduate. He then worked as a team lead of a tech and fundamental analysis lab in the Applied System Analysis Research Institute. This helped him to acquire all necessary skills and experience to become a successful trader and analyst, as well as a portfolio manager in an investment company. Dmitry is a pro in the financial field who authors articles for various international media. He also holds the position of Chief Analyst at RoboForex.




Feedback or Requests?

Continue Reading

Stock Picks

Stock Picks: UAL and AES

Published

on

The S&P 500 (SPX) pulled back last week. This dip is healthy as it enables the index to regroup before mounting a push to take out resistance of 2,800. The surge in volume on Friday, June 15, 2018 gives us confidence that bulls are once again buying.

With the SPX flashing signs of strength, let’s look at stocks that offer profitable trade setups.

UAL – United Continental Holdings Incorporated

United Continental Holdings Incorporated (UAL) is an airline holding company that transports both people and cargo. The company owns and operates United Airlines, Incorporated and has air rights in North America, Asia-Pacific, Europe, Middle East, Africa, and Latin America. As of 2016, the company has total assets worth $40.140 billion.

Technical analysis show that UAL is creating a large cup and handle continuation pattern on the weekly and monthly charts. This view comes after the pair generated a higher low of 60.44 in February 2018. The stock has been rallying since and it looks primed to take out resistance of 75.

To complete the breakout, the stock must print 6 million shares on the daily chart. Those who bought the higher low are likely to take profits at 75. The stock needs buyers to absorb the selling pressure.

Furthermore, fundamental analysis reveal that the trailing twelve months (TTM) price to earnings ratio (PE ratio) of UAL is 10.13.  The stock is undervalued considering that it has a five-year maximum of 52.80 and an average of 13.80. Based on these figures, the stock has some room to grow.

The strategy is to buy the breakout at 75 as long as the pair generates the prescribed volume. Once breakout is complete, bulls have the momentum they need to climb to our target of 100.

The process may take more than three months.

Weekly UAL Chart

Monthly UAL Chart

As of this writing, the United Continental Holdings Incorporated stock (UAL) is trading at 73.80.

Summary of Strategy

Buy: Buy the breakout at 75 after the pair generates 6 million shares on the daily chart.

Target: 100

Stop: Close below 70.

AES – The AES Corporation

The AES Corporation (AES) is a Fortune 500 company based in Arlington, Virginia. It generates and distributes electrical power in 15 countries and employs over 10,000 people all over the world. In 2017, the company generated $11 billion revenues while managing assets worth $33 billion.

Technical analysis show that AES is attempting to break out of the cup and handle pattern on the weekly and monthly charts. However, it appears that the stock is not yet ready to take out resistance of 13.

We have this view because the monthly and weekly candles are detached from the 4-day, 8-day, and 21-day moving averages. This tells us that the move up is not sustainable. Also, the pair is flashing overbought readings on the weekly chart. What we can do is to wait for a slight pull back before placing buy orders.

On the other hand, fundamental analysis reveal that AES’s trailing twelve months (TTM) PE ratio stands at 27.98. The stock appears overvalued but it has a five-year maximum of 105.43. In addition, recent company earnings report beat expert estimates. Considering these figures, AES has some upside potential.

The strategy is to buy on dips as close to 12 as possible. If bulls preserve the support, they may finally take out resistance of 13 and ignite a rally to our target of 15.50.

The process may take more than three months.

Weekly AES Chart

Monthly AES Chart

As of this writing, The AES Corporation stock (AES) is trading at 13.10.

Summary of Strategy

Buy: Buy on dips as close to 12 as possible.

Target: 15.50

Stop: Close below 11.50.

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 181 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




Feedback or Requests?

Continue Reading

11 of 15 Seats Available

Learn more here.

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending