Aug 27, 2010 10:04 AM PDT
Trends, Charts and Exclusive Opinion
Three SmallCaps that 'Have' or 'Could' Break-Out
CYTX: Now $9.29; this was an 11-17 ‘Watch Closely’ for us at $4.36
NBIX: Keeping the Pipeline Positive and Active with Shares Sale
KELYA: Now $12.98; this was a 12-21 ‘Buy’ for us at $11.06
Gaining 3.78% this morning is Cytori Therapeutics Inc., (CYTX) http://www.cytoritx.com/ currently trading in the $9.29 range. CYTX is a very heavily traded SmallCap with a 3-Month average daily trading volume of 736,576 shares which it easily topped this morning early in the session. CYTX set a new 52-week high this morning, toppling its previous high of $8.98 set yesterday. CYTX is widely held by insiders and institutions. There are a lot of short-sellers of CYTX. My sentiment is this, looking at the charts below, I hope they are prepared to ‘Buy High’ and take the loss. I believe CYTX has legs and can make further headway. CYTX continues to be a near-term (3 Mo) ‘Watch Closely’ stock for me.
On Nov 17, I considered this a near-term (3 Mo) ‘Watch Closely’ stock for me at the $4.36 level. I wasn’t convinced it could hold in the $4 range; thus no outright ‘Buy’ consideration, but it certainly was worth watching closely day-to-day to see if a ‘buy’ opportunity presented itself. As it trended up, I hope someone got in at that $4+ level.
CYTX was under $2 in April and set a $3.50 floor for the months that followed and in the last 3-Month period began to pick up steam spiking into its current range. What really put CYTX on the map happened on Jan 8 when the Company received Food and Drug Administration approval for its device that can transfer a patient’s fat to other areas of the body for cosmetic purposes. CYTX shares jumped 15% on the news.
The CYTX device, called the PureGraft system, enables a patient’s fat tissue to be taken out of the body and re-injected for ‘aesthetic contouring’ taking about 15 minutes. CYTX management said the procedure may become available in Q1 of 2010 in the U.S., and may gain approval from European regulators before midyear. You can check the CYTX web site for its extensive pipeline and clinical trials.
CYTX 1-Year CYTX 3-Month
Sign-up for Free to Receive Future Commentary
and Trading Alerts on CYTX, NBIX, and KELYA.
Losing 10 cents this morning is Neurocrine Biosciences Inc., (NBIX) http://www.neurocrine.com/ currently trading on the $2.66 range. Why is a loser a Break-out Performer? NBIX is simply giving back some of the 11% gain of $0.27 it picked up yesterday. I’m thinking ‘break-out’ here not in terms of daily numbers; but in near-term advances of value. NBIX has a 3-Month average daily trading volume of 185,873 shares. NBIX has a 52-week high of $4.25 set on 03-23-09. NBIX is widely held by institutions and has some shorters, but it is a development stage company (hardly any revenues) and struggling until an FDA approval comes along for one of its drugs is par for the course with Pharma companies.
NBIX fell from $4 in February 09 and fell again, most dramatically, from July at $3.50 to Oct at $3. NBIX then took a nosedive on earnings and a stock offer to raise cash, dropping the stock back to $2 levels in Nov. I see NBIX as a very affordable way to get into a bio-pharma stock that is pursuing treatments for some of todays most prolific afflictions. If NBIX can get something out of trials and to market, the stock will soar. NBIX is a long-term (1 Yr) ‘Watch Closely’ stock for me.
On Dec 21, NBIX announced their highly selective vesicular monoamine transporter 2 (VMAT2) inhibitor, NBI-98854, will be advanced in clinical development. “The results of this first clinical trial in our VMAT2 inhibitor are exactly what we were seeking,” said Chris O'Brien, Chief Medical Officer of NBIX. That’s the stuff!
The NBIX VMAT2 is a protein concentrated in the human brain that is primarily responsible for re-packaging and transporting monoamines (dopamine, norepinephrine, serotonin, and histamine) among nerve cells. VMAT2 inhibitor that is effective in regulating the levels of dopamine release during nerve communication and may well be useful in other disorders, such as Huntington's, schizophrenia, Tourette's syndrome, and tardive dystonia.
On Dec 17, NBIX entered into a privately negotiated transaction to sell an aggregate of 4,784,689 primary shares of its common stock to affiliates of Venrock at a price of $2.09 per share, raising aggregate gross proceeds to NBIX of approximately $10 million. This shouldn’t alarm an investor in bio-pharma; trials cost money. A week earlier, NBIX announced top-line efficacy and safety results from the Tulip PETAL Study (703 Study), its fifth Phase II clinical trial using its proprietary, orally-active nonpeptide Gonadotropin-Releasing Hormone (GnRH) receptor antagonist, elagolix, in patients with Endometriosis. In its Q3 09 earnings filing, NBIX lost 21 cents a share, so if you’re looking of near or short-term gains, NBIX isn’t for you. You can look at the NBIX web site for its extensive list of clinical trials.
NBIX 1-Year NBIX 3-Month
Gaining 4.33% this morning is Kelly Services Inc. (KELYA) http://www.kellyservices.com/ currently trading in the $12.98 range. KELYA has a 3-Month average daily trading volume of 189,551 shares. On $4.40 billion in trailing twelve month revenues, KELYA has a 52-week high of $14.10 set on 09-22-09. KELYA is widely held by institutions. There are some short-sellers, but not enough to put downward pressure on the stock. KELYA established a $10 floor in the last 10 months, with some support at $12 and in the recent 3-Month period, has held an $11 floor with spikes up and down from that level. The trend 3-Months ago seemed to fall off to $10.50, but a January surge has pushed it up to its current level.
The jump today came on news that research house Robinson Humphrey upgraded the stock from a ‘Neutral’ to ‘Buy’. On Dec 21, trading in the $11.06 range, I considered KELYA a near-term ‘Buy’ stock for myself based on the recession recovery indicator of company’s hiring temp workers first and then transitioning them to full-time as 2010 economic improvements took hold. KELYA is still a near-term ‘Buy’ for me as I think it can find support as moves towards $15.
As one analyst recently put it, “... improving signs in the temporary employment sector over the past several months as well as optimism on the long-term secular trends in the staffing market ...” could move the whole employee provider industry. I agree.
KELYA 1-Year KELYA 3-Month
|
Follow any changes in our opinion of CYTX, NBIX, and KELYA... Quickly identify trends in current market activity and receive |
|
