The following three companies, Antares Pharma Inc (AMEX: AIS), Constellation Energy Partners LLC (NYSE: CEP), and EMCORE Corporation (NASDAQ: EMKR) are all teetering in a price range that could signal an upward movement in valuation.
Let’s look at EMCORE first. The stock was trading in the $2.50 range much of May and is currently trading in the $2.24 range. The stock has spent much of June in this current range and seems poised to make a move; one way or the other. EMCORE had a steep spike in February March from $2.50 to $3, so I believe there is support from existing shareholders to ‘buy in’ and aggregate and for the stock to attract new buyers. The number of short sellers of this stock is less than normal, and any further downward pressure is likely to come from them. The Company has a big interest in the solar market and if that business can ever get itself on track; that could also boost valuation.
Another stock that is poised to possibly make a break is Constellation Energy Partners which has climbed from $2.10 in mid May to its current $2.71 range, a gain of 29% in a month. The stock was trading above $3.20 in early February and has lingered in its current range for most of this month. Is it positioned to make another surge? Break out from this level? I think so; based primarily on the strength of its run ups in late January and earlier this month. I think the stock could retake the $3 level in the near term (3 mos).
And then there is Antares Pharma which was trading in the $1.70 range in mid May and rallied a spike into June topping $2.10, a gain of 23.5%. The stock came back down almost immediately to the $1.90 to $2 range and has ‘waiting’ there for much of this month. It is currently trading in the $1.94 range. The strength of this months run up could signal a willingness by shareholders to buy up more shares; pushing it upward to that $2.10 level. Antares Pharma has fewer short sellers than normal and positive sales and EPS projections to give credence to another ascent in valuation.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.