News Details – Smallcapnetwork
Gold & Dollar Redux, Looks at TRLG, MNKD, BBI, MNTA, ANX, & NEWP
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February 2, 2024

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PDT

In this edition... Momenta Pharmaceuticals (MNTA), MannKind Corporation (MNKD), Adventrx (ANX), True Religion Apparel (TRLG), Newport Corporation (NEWP), and Blockbuster (BBI) are in the spotlight today. After that, we take another look at charts of the U.S. Dollar and gold.    Stocks in the Spotlight  Technical Forecasts for CRBC, LJPC, and BBI James Brumley actually made the call back on December 8th, though Blockbuster Inc. (NYSE:BBI) didn't start getting any obvious traction until this week. Now that it has though, the movie-rental stock is one of his favorite trade picks. The key was BBI getting - and staying - above $0.66, which has happened this week. With a current price of $0.75 (and another higher high), the Blockbuster Inc. momentum is still building on what could end up being a triple-digit gain.  Up-Trend Outlook: NEWP, BANR, ININ Dennis Askew makes no bones about his 'buy' rating for Newport Corporation (NASDAQ:NEWP). After hitting new 52-week highs on huge volume, effectively raising the support floor for NEWP to a higher level than before. At the heart of the positive outlook is a compelling management team for the technology company; major institutional ownership doesn't hurt either. Newport Corporation manufactures lasers, instruments, and components for the semiconductor industry... one of the market's biggest beneficiaries of economic recovery.  Top Consumer Staples Picks for 2010: TRLG, ICON, NWL, HANS, BARE The Small Cap Network is still rolling through its 'best of sector' series, adding its consumer staples picks this week. Among the best is True Religion Apparel, Inc. (NASDAQ:TRLG). The fashion-oriented retailer stock nose-dived in November on weak holiday shopping fears, though the fears were overblown. True Religion Apparel has more than survived the recession, which is why net profit margins are still running a solid 15%. With a P/E almost at single-digits, TRLG is a 'buy'.  Carl Icahn's Adventrx (AMEX:ANX) Ready To Run As FDA Filing Date Approaches M.E. Garza has been following Adventrx (AMEX:ANX) very closely, with the latest chapter in the story focusing on an impending submission of an NDA (new drug application) for ANX-530. The new drug turns the chemotherapy drug vinorelbine tartrate - or Navelbine - into an emulsion intended to treat non-small cell lung cancer. It's not the only thing in the Adventrx, but it is the most pressing. ANX shares have perked up as the expectation of the FDA request grows.  Charting Forecasts of HEPH, MNKD, and SIMG MannKind Corporation (NASDAQ:MNKD) shares stopped and reversed like clockwork on the 22nd, pretty much like James Brumley described earlier that same day. Between MNKD closing the October 6th gap and then reaching a major Fibonacci line at $9.50 on the 21st (not to mention the weight of its recent gains), the deck was stacked against MannKind Corporation. From here, a revisit to the other key Fibonacci line at $7.81 is likely.  High Flyers: NBIX, HNSN, MNTA Momenta Pharmaceuticals Inc. (NASDAQ: MNTA) is almost a 'buy' for Dennis Askew. The key to getting the drugmaker stock off the watchlist and into his hypothetical portfolio is the pending approval for an anti-clotting drug, which - per the company - could happen before the end of this year. Dennis acknowledges, however, that the risk in FSA-related matters can be as great as the reward... and MNTA is apt to be volatile either way. The consensus opinion at this point, though, is that Momenta Pharmaceuticals is worth the risk.    Gold Versus the Dollar - Reversal of Fortunes It's hard to believe it was only four weeks ago the U.S. dollar was getting crushed, and gold futures were soaring. Whatever the reason though, both of those trends have been reversed - dramatically - in December. More importantly, both of these trends still seem to have more road in front of them before they've fully played out.  Using the SPDR Gold Trust ETF (NYSE:GLD) as a proxy, we can see gold prices are up today. But, we can also see they were up on December 16th as well. It was hardly the beginning of a rebound though. In fact, GLD fell sharply to new multi-week lows the next day. Today's strength is likely the same kind of bottom-fishing buying. Like the last time, however, the bullish effort won't be enough to stop the bearish freight train that's now in motion.  We still contend gold futures are en route to $1027, which translates into a target price of $99-$100 for GLD. Those target levels were determined by using Fibonacci lines, though it's worth noting both are in line with October's key low or high points.  As for the greenback, undoubtedly today's mild bearishness will convince a handful of doom-seekers that the last month's worth of rally was just a bullish blip on the path to complete financial devastation.  To some degree their expectation for downside is probably right - the dollar has worked its way into an overbought situation, and needs to cool off. On the other hand, much of that pessimism needs to be reeled in. Even a strong pullback won't necessarily put the U.S. Dollar Index back into its prior downtrend.  We're only looking for the dollar to bleed off its overbought pressure. After that, it's onward and upward again.  Before it's all said and done, the Dollar Index should reach its first Fib line at 79.76 before we even need to think about taking a stance against it again. Nothing is ever set in stone though, so be sure to stay tuned for updates on these outlooks.  And just so you know (though you probably do anyway), it's the dollar's movement that's mostly fueling gold's movement. Both should be hitting major milestones at roughly the same time, which is why we're using Fibonacci lines as our targets on both charts.