News Details – Smallcapnetwork
Trade Alert: An Under the Radar NASDAQ Biotech
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February 2, 2024

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PDT

An Under the Radar NASDAQ Biotech  We asked, you delivered. Several weeks ago we announced we'd pay $200 to anyone who submitted a stock pick good enough to be featured here in the newsletter. Well, we got one a couple of days ago. Congrats to Tod P. for getting the first of what we hope are many $200 checks for your great trading ideas. And, if all goes as he expects, congratulations will be in order soon enough for anybody who acts on his pick.  We'll get to the recommendation in a second, and then we want to show you the coolest frickin' tool on the web for actually making money as a stock trader. First though, we need to take care of a little business and update some of our most recent trading ideas. Assuming you got into AlphaTec (ATEC) on the open of April 6th when the alert was issued, you can get out right now at about a break even.... and we recommend you do. Some of you already got out a couple of weeks ago with a gain. If that's you, great. If you happen to still be in it, you know it's been like watching paint dry. We all (hopefully) have better things to do. Dump it and move on. As for GigaMedia (GIGM) - our most recent recommendation - this one's a judgment call on your end. For our money, the bulls have already shown their hand with the breakout effort from a couple of weeks ago. And, we're seeing support at many of the key moving average lines. The bullish volume has stayed reasonably firm too. It's worth sticking with for now, at least the way we see it. AVANIR Pharmaceuticals (AVNR) and Biodel Inc. (BIOD) were the only other two names still on the radar. You can go ahead and shed Biodel... it's spinning its wheels just a tad above our entry level. AVANIR is still a hold, having finally set up shop above that key support/resistance line at $4.20.  Now about today's new (reader contributed) pick....  No fanfare needed - it's AEterna Zentaris (AEZS), a biotech working on some really incredible cancer treatments (with one in Phase III). We've got our own thoughts on the opportunity, but since Tod P. sent his own in, we'll share his words first: When I look into buying stocks I look at what the company does, who runs the company, can their product get to market AND be PROFITABLE? Then I check SEC filings - IMHO one of the most important tools to gauge near term stock price and volatility going forward. How many shelf offerings (and when), any R/S?, who's buying/selling(and when)...As far as AEZS is concerned...the pipeline is deep and widespread. I like them because they're receiving royalties for the all-important constant cash infusion, and still hold patents for the majority of the world.  All great points Tod, and thanks for the pick. The only note we'll add is a semi-technical one. As easy as it is to get lured into a stock while it's on the way up, the time to step into a trade is when it's on the way down. A lot of folks jumped in late last week when they saw some hot momentum right as the stock was hitting $2.40. Right idea, but wrong time. The stock's back to $2.29 now; those extreme rallies rarely last. What's interesting - and bullish - about this pullback from the peak of $2.68 is how the selling has been on light volume, and it's been getting lighter. For that matter, the selling wasn't even selling on Wednesday, as AEterna Zentaris shares started to work on an upside reversal and resumption of its rally around mid-day yesterday. Timing is everything, and we think the time is now. Thing is, there's a way you could have heard about AEZS well before today, and gotten in on the first runup.....    Where to Find Big Stock Gains  If you haven't been to the Small Cap Network community site in the last two days, then you've not seen the next evolution of one of the web's best resources for turning information into money.  The 'research' side of the SCN site is now 'Stock HQ'... the final destination you'll ever need for making a trading decision.  Why are readers flocking to this new tool? Here's why.... Lee Wilson's LEXG pick, up 178%. Paper Trader's (whoever you are) CMCI pick, up 30% in a week. John Monroe's VHC pick, up 66% in less than two months. You get the idea - if you're not getting specific stock trading ideas with your news and commentary, you may as well be reading a comic book. Our contributors know how to turn information and data into real trades (every trade mentioned above was posted publicly), and you can follow as many of these gurus as you like. Are you a great stock picker or savvy observer of all-things-investing yourself? Then you can be one of Stock HQ's next great gurus. Publish anything you want.... blogs, research, picks, tutorials, and anything else you can think of. And if you don't want to publish under your real name, no problem....just change your profile name with the 'manage profile' feature of our community.    Important Updates From the Community Sorry for the painfully obvious play on words, but 'Paper Trader' is on fire. This is the same guy we pointed out last week after he had posted one trade. Now he's got five, three of which are way profitable! Keep 'em coming.  Oakie's asked a great question about the broad market here....and one that should start a heated discussion. (This is one of those obscure seeds that may end up yielding a big 'aha' moment for a lot of traders. It just needs participants to get the ball rolling.)  Three penny stock possibilities for you, and not one of them has raced out of reach yet.  Is anybody else tired of 'rare earth' mania? We get it - they're rare, and in growing demand. Enough already....how long are the bulls gonna' wave that flag? Anyway, Art Bagra's just giving these names a reality check. It's gotta' be tough to be in that doubting minority, but it's a healthy discussion to have. Was the collective market really 0 for 3 on these three stocks yesterday? The meltdown at the Fukushima nuclear power plant was supposed to be the beginning of the end for nuclear power, and the beginning of the mainstreaming of energy sources like solar, wind, and geothermal. Has the hysteria already been left so far behind that solar stocks have already lost their luster again? If so, that fear-induced fad faded faster than SARS, the North Korean/South Korean conflict, swine flu, and Greece's debt crisis (all things that were going to end the world at the time, but are barely a memory now). As such, these once hot U.S. solar stocks may already be bad investments again. Got food?  When it comes to most things these days, consumers have become more cost-conscious than brand-conscious. Not so in the beer world, and that's showing up (or not showing up) on bottom lines.    We Value Your Feedback Got comments, questions or suggestions? We want to hear from you. Send us your feedback. 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