Unfortunately, stocks rarely wave a flag that says "buy me now." Most of the time, the only warning signs we might get are the ones we can barely see. Take Pluristem Therapeutics Inc. (NASDAQ:PSTI), DynaVox, Inc. (NASDAQ:DVOX), and Entest BioMedical Inc. (PINK:ENTB), for instance. All three have hinted that a breakout is brewing, even if nobody else has noticed.
If the name Entest BioMedical Inc. rings a bell, it might be because I posted some bullish comments on it back on January 30th. Specifically, I liked the way ENTB was fighting its way higher - and past several key moving average lines - even without any news prodding it higher. As I said then, "It may sound crazy - if not impossible - to think Entest BioMedical has any real upside. But, charts don't lie.... somebody thinks something bullish about the company. Thing is, these unknown buying sprees have a tendency to be justified later on. It's worth watching anyway."
Well, guess what. Still nothing. Not even a shred of news from the company. Yet, ENTB has still traveled from $0.0015 then to the current price of $0.0073 - a 386% move that (frankly) nobody else saw coming, and that some even taunted me for suggesting was in the cards. Better still, with the rollover from Tuesday and the intraday dip and subsequent recovery on Wednesday, I think any overbought pressure has been burned off and the Entest BioMedical uptrend has been renewed. Dive in.
It's been working on it for a while, but DynaVox, Inc. was able to unleash part of its brewing breakout effort yesterday. As the chart below shows, the 100-day moving average line (grey) was a resistance level in mid-January, sending DVOX down again after being brushed briefly. The bulls never really went away though. They were just waiting for the next opportunity to breakout. That was yesterday, and they did. Now that the 100-day line has been hurdled, future bullishness will be easier to muster.
DVOX is a software company. It published speech and text software to assist people with language or learning disabilities. Though not profitable on a trailing basis (mostly), the past isn't the future. DynaVox is plausibly expected to earn $0.07 per share in fiscal 2013 (ending in June of this year), and is expected to earn $0.13 per share in fiscal 2014.
Finally, though it's not quite ready for prime-time just yet, this morning's pre-market bullishness at least merits putting Pluristem Therapeutics Inc. on your watchlist. One more good nudge could be all that PSTI needs to hit the afterburners and take flight.
The chart below says it all. PSTI has been riding a rising support line that extends all the way back to March of last year. Since last August's peak around $5.00, the stock has also been capped by a falling resistance line. It's just been within the last few days, however, that those two lines have almost converged, and left Pluristem Therapeutics shares nowhere to go [the fact that all of this is happening right around several converged moving average lines only underscores how much pent-up energy there is. The bulls seem to be taking charge too, and of today's early buying effort can lead to a close above the 100-day moving average line at $3.48, that may well start the fireworks.