Two Biotech Breakouts Now Underway In one of the funnier episodes of Seinfeld, Jerry compares breaking up (a relationship) to tipping over a Coke machine... it rarely works the first time - you have to rock it back and forth until it finally falls over. Eventually though, the deed is done. All joking aside, stocks can be the same way; sometimes a chart has to rock back and forth a few times before it finally catches some wind and really starts to move. As it turns out, not one but two of our recent picks now look like they've rocked themselves all the way over on the bullish side of the fence. If you aren't in yet, we think now's the time. The first one is Avanir Pharmaceuticals (AVNR). Yeah, it's been falling back pretty much all month long, but the rebound since the middle of last week happened right where we needed it to, confirming a major support line that extends all the way back to early 2010. It's been very up-and-down, but since we picked it back on February 24th, it's been more up and less down... the stock's ahead about 10% from that entry spot. That's not even the big deal today though. No, what grabbed our attention is something we're just now starting to see - a lot of buying volume, despite a lack of news. See all those tall blue bars at the bottom of the chart? Somebody's now accumulating a serious number of shares. If they know something, then we want in. And if the stock's just attracting a bunch of new buyers - or if all those short positions are now being covered - that's just as good. Either way, one of these rally efforts is going to be the one to light the fuse - this thing has a bit of a history of taking off with little to no warning. The other breakout is Alphatec Holdings (ATEC) - the manufacturer of spinal surgery and repair systems that's trapped somewhere between being a biotech and being a medical device maker. The stock's knocking down walls like Mike Tyson knocked down boxers when he was in his prime. Even better, this looks like it's going to be one of those scenarios where the more ceilings the stock punches through, the easier it is to sail through the next one. We've actually logged this progress ever since we named ATEC as an official pick back on April 6th ....after the resistance level at $2.86 (orange) was toppled. Following that, $3.13 (green) fell, and as of late last week, so too did the ceiling at $3.30 (purple). At some point, you have to simply accept that the bulls just aren't interested in quitting. Between the April 6th entry at $2.96 and Monday's close of $3.40, anybody who took the recommendation is now up a solid 15%. Frankly though, with as firmly as this one's been knocking everything out of its way, ATEC may just be getting started. The prompt for the latest round of bullishness was mostly attributable to Q1 earnings. They came in at a record $49.7 million, up 6.6% on a year-over-year basis. The net loss per share fell from $0.09 a year ago to $0.02 this year - a huge step forward, bringing real profitability into the foreseeable picture. That's about as much as you could ask for as an investor at this stage of the game. Just goes to show you ...timing is still everything. As for everything else, which is GigaMedia (GIGM), Biodel (BIOD), and Aeterna Zentaris (AEZS), not a whole lot going on. The market's malaise is gripping these names too, and there's no sense in trying to deny it (especially when two of our five open picks are on a roll). One upcoming event you may want to be aware of... Aeterna Zentaris will announce its Q1 numbers on Wednesday (May 18th), with a conference call and webcast to follow that same day. Here ya' go if you want to participate. GigaMedia will be having its Q1 call on Wednesday, May 25th, but at a crazy time - 10:00 pm EST, following the post-market-close release of earnings numbers that day. If you'll still be awake at that point, feel free to join in the conference call.   $500 With Your Name On It Wanna' make $500? It may be easier than you think. Just sharpen up your virtual pencil, and start sharing your best trading/investing thoughts at the Small Cap Network's new Stock HQ. Whoever has the most-read article - as measured by page views - between now and midnight, June 30th, wins the money. We posted the rules and details back in Saturday's newsletter, so no need to rehash them. If you want to revisit it, it's here. The really cool part about the contest.... win or lose, you get to be published at one of the most popular and fastest-growing investment sites around. You can use a pen-name if you like, but if you want to prove your prowess or put together a writing portfolio, this is a great way to get your name out there. Remember, the article has to be about one, and only one, stock. Good luck!   The Community's Best Whether the guy's right or wrong about the stock, anybody willing to title an article "Role Reversal in the Muffin Merchant World" has to be worth checking out. What's "electro-oncology", and why is OncoSec Medical Inc. (ONCS) interested in it? M.E. Garza's (who actually met the CEO of the company) got the skinny on the technology and the company behind it, as it prepares to enter Phase II testing for a few tumor-fighting treatments. Free presentation too. Looks like the Chinese middle class has now caught the gambling bug too. What's not to like? Great question Dennis.... what's not to like about these three picks? Of all the alternative energy options out there, geothermal seems to be the most obscure... perhaps a testament to a limited understanding of how it works, or maybe just 'cause it's the least-developed. Regardless, John Udovich names some names of geothermal stocks that are making this venue viable.   We Value Your Feedback Got comments, questions or suggestions? We want to hear from you. Send us your feedback. If you wish to send a written request or inquiry, please send it to our physical address: SmallCap Network 4364 Bonita Rd. #451 Bonita, CA 91902   Share the SCN Newsletter If you find the Small Cap Network Newsletter informative and profitable, please forward our newsletter alert service to like-minded friends and associates who share similar market interests.   Ensure Newsletter Delivery To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. 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