Looking for some new long ideas? The market's weakness sure isn't making it easy, but if you're willing to dig deep into the small cap stock realm of the market, you can find some incredible budding opportunities. Among the top trading possibilities today are Clean Diesel Technologies, Inc. (NASDAQ:CDTI), Powerwave Technologies, Inc. (NASDAQ:PWAV), Biosante Pharmaceuticals Inc. (NASDAQ:BPAX), and Cardiome Pharma Corp. (NASDAQ:CRME). All four names have dropped key technical hints that better days are right around the corner. Take a look.
Beginning with what looks like the top pick of the litter, Powerwave Technologies, Inc. shares have finally pushed their way above a nagging 100-day moving average line with today's surge. For the past week and a half, that 100-day line had halted a breakout effort in its tracks. With today's pop from PWAV though, the tide's been fully turned and the stock's got the green light.
PWAV makes wireless networking equipment. Given the prolific rise of data-hungry smartphones and mobile internet, it seems like the company wouldn't be able to keep up with demand. But, competition is still, and once its customers but hardware, it's not like they have to keep buying it. On the flipside, with all the major carriers reviving their 4G growth efforts, Powerwave Technologies may be getting a long-awaited shot in the arm. That's what the chart's saying investors think anyway.
Cardiome Pharma Corp. has been a disaster for the past six years, falling from around $12.00 per share in 2006 to $0.41 as of the last look. Yet, something has happened to CRME in the last week and a half that says there's at least a little upside ahead. That event is a surge past a ceiling around $0.35, and then a follow-through past the 100-day moving average line.... all on rising volume. There's still no ceiling in sight.
CRME is the developer of Vernakalant, which is licensed to Merck for sale in Europe, and is at the end of Phase 3 testing and waiting for FDA approval in the United States. Revenue has been scant, and losses remain heavy. But, the market is clearly starting to warm up to Cardiome Pharma. No need to fight the tape.
Of the four charts in question, Biosante Pharmaceuticals Inc. looks the least bullish, at first glance. Shares are in the red today - again - after BPAX failed to hurdle the 100-day moving average line with its effort last week. Thing is, the stock's still in the hunt. It just needs a little more time to lay the right foundation before making the game-changing leap above that 100-day moving average.
BPAX is the company that makes a handful of sexual-health products, for males as well as females. Its flagship product is LibiGel, which has been something of a roller coaster ride for the company. But, Biosante Pharmaceuticals recently announced it had completed a safety study and was ready to resubmit it to the FDA. The outlook is optimistic.
Last but not least, after a few tries, Clean Diesel Technologies, Inc. shares have finally made it above the 200-day moving average line. Given how CDTI also gradually ramped up its higher lows before making the leap, this turnaround should have real legs that prior attempts didn't.
CDTI manufactures low-emission diesel engines and related equipment. 2011 was a breakout year for its technology, but revenue waved in the prior couple of quarters. A recent supply deal with Honda, however, seems to have breathed new life into Clean Diesel Technologies.