Along with substantial institutional ownership and solid "buy" recommendations by analysts, the thing that sets this group apart is the fact that they are all micro-cap stocks (with values between $50 and $300 million) that are showing a strong technical possibility of moving out of their recent consolidation trends.
As some of you know, triangle patterns are usually characteristics of a trend consolidation followed by an accelerated break out of the pattern in the direction of the continuing trend.
All of these stocks are showing a symmetrical triangle which is indicative of a period of consolidation during a trend. As such, the pattern yields to a breakout in the direction that corresponds with the trend beforehand. In short, something has to give and if you like to trade, then you may want to put these potential movers on your radar screen.
Lpath Inc (LPTH) is a therapeutic antibody company which has been getting increased attention for its focus on lipid-based therapeutics, which some believe may be the next big thing in biotech.
Unlike the vast majority of developmental biotech companies its size, Lpath benefits from having a powerhouse partnership with Pfizer, the world's largest pharmaceutical firm. Last year, a transformational deal was made in which Lpath was paid an upfront option payment of $14mm, with the potential for a total of $497.5mm in milestones if Pfizer decides to license rights to one of the drugs undergoing clinical trials (iSONEP™) and expecting results soon. With a current market cap of 63M, the stock has an analyst price target of $8 and is currently 27% lower than its 52-Week high of $1.55. Volume and trading activity has been rising in the stock has been on the rise since October.
Now is the time to accumulate LPTN and have it in portfolio. As investors how many times have we created watch lists and not taken positions only to look at watch list results in the green. I know I have and I want to kick myself for not taking action each time. Usually, if it draws enough of my attention to be on radar; it's worth owning, in my opinion. Nice article by the way, thanks for posting it.