Sunday, January 10, 2010

Stock Watch 1-11-2010

Luna Innovations Incorporated (LUNA) -This company engages in the research, development, and commercialization of technologies in health care. The stock had a huge 71% gain from it’s open at $2.74 – $4.50 with an extra 1% gain in after hours. This reason for this huge spike came from the P/R issued that stated “(LUNA) said Friday it will expand its development and supply agreement with Intuitive Surgical Inc. (ISRG) to continue providing its shape-sensing technology for Intuitive products. report here” which lead to the spike. This companies balance sheet is a mess, the market cap is only 50million with 5million in debt. This spike was not from only good news but definitely from all the shorts covering. This will be interesting as to how it will play out on Monday, i think this could be a good setup for a short. I will only short if i can find shares and if it starts to fade through out the day. Check the chart here.

WebMediaBrands Inc (WEBM) – This is a media company that had a nice 26+% gain on Friday breaking it’s previous high of $1.30/share, which is considered a technical breakout. The question here is will it hold and keep going? I doubt it on the notion that it faded a lot towards the close with low volume and i see a morning sell off. This will be a potential short for sure.

Methode Electronics Inc. (MEI) – This company manufactures component devices worldwide. The stock got an analyst upgrade to outperform which made the price spike 25% from $9.53 to the high of $11.34. It had a breakout point at $9.80ish and surged higher from there with a strong finish late day. I see this stock coming back down some which will be a great buy on the dip to see it return to it’s 2 year high of $14.19/share. This company is so so on the balance sheet, it has a good amount of revenue coming in with 0 debt. I think this was one company beaten down by the economy and is starting to come back nicely. The short interest has also decreased. Potential swing trade if i can get in when it dips a little lower. Check the chart here.

CPEX Pharmaceuticals, Inc. (CPEX) – This Pharmaceutical company has a recently completed a phase 2 clinical trial of Nasulin a diabetes drug that helps a diabetic’s insulin levels. The results of the test are expected to be released a t the beginning of the second quarter of 2010. Friday a P/R was released stating that “(CPEX) confirmed that Arcadia Capital Advisors, LLC and its principal Richard Rofé, who hold approximately 12% of outstanding shares, have filed with the Securities and Exchange Commission (SEC) notice of intention of Mr. Rofé to make an unsolicited contingent offer to purchase the remaining shares of common stock of CPEX for $14.00 per share.” this of course spiked the stock price from $11.75 – $14.05/share. This is good for the company and share holders. On the other hand the shares outstanding are 2.5million and the float is only 1.84, so this thing can go wild with any news in a short period of time. I would watch this the next coming days to buy into, because this stock can climb fast! This reminds me of (VRMLQ) and its price fluctuations, CPEX is a Potential buy, check the chart here.

Cytori Therapeutics, Inc. (CYTX) – This company engages in the development, manufacture, and sale of medical technologies to enable the practice of regenerative medicine. It also just got FDA approval for a “fat transfer device that can transfer a patients fat to other areas of the body for cosmetic purposes”, sounds pretty ridiculous to me but they actually got approval and the stock spikes 12%+ check the P/R here. This company is in the hole big time as far as revenue coming in, this will definitely bring more in. On the other hand it seems the stock did not want to hold its gains and actually went negative on the close, which could mean a lot of people were taking some profits and selling into that spike. 18% of this stock float are short which if they cover could really send this stock soaring. If it can hold and here and and i see some big buy orders coming in, this could be a nice setup for a swing trade. Potential buy, check the chart here.

ICX TECHNOLOGIES INC COM (ICXT) – Here we go again the same airport security stock coming up on my radar. This stock does not want to make up it’s mind, it spikes and then falls then levels off around $7.50ish and now is starting to spike again. This reminds me of NLST when it was doing this, it was teasing everyone but those who held on threw the ups and downs really made money as it just keep stair stepping higher. ICXT does want to power higher although the volume is starting to fade and bulls starting to get weak, i still think this is a short all the way unless it get’s more news coverage. Check the chart here.

Inspire Pharmaceuticals (ISPH) – This pharmaceutical barley made my list, it made it only because its on the verge of a breakout. It spiked on Friday due to short squeeze IMO there is no big news for it other wise. It also lost half of those gains in after hours as everyone sold that spike. As you can see from the chart here, it is right there at the breakout point but it needs a good push to get threw that resistance. I will watch to see what it does, i don’t think it can do it.

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