Nice pump article on MBLX technicals from yesterday
From Small Cap Network: Metabolix Just Left the Ground (CERPQ, KRA, MBLX)
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Metabolix, Inc. (NASDAQ:MBLX) isn't exactly a name hat turns heads within the investment community. With a market cap of only $54.6 million, even big news from the company isn't a game-changer for the market. And, the fact that traders have a tough time defining what the company "does" hasn't helped the MBLX cause much either. Yet, the size of the company and the service it provides don't change the fact that the bullish Metabolix switch got flipped all the way to the on position on Tuesday.
In simplest terms (which still aren't all that simple), MBLX is a biochemistry company. Specifically, Metabolix makes polymers that are environmentally-friendly, meaning these polymers - plastic substitutes - are either biodegradable, and/or made from a biochemical process rather than traditional petroleum-based processes. The company also has developed processes and chemicals that can turn plant life into renewable chemicals or energy sources.
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That's not the important part of the MBLX story right now, however. Neither is any recent news, because Metabolix hasn't generated any press activity since last year, other than to announce it would be presenting its technology at trade shows, and to announce when it would be hosing its Q4 and full-year-2013 conference call. (It's Thursday, March 27th, for those who are interested.) No, the most interesting story about this company right now is the one its chart is telling. The chart is saying the company's turned the co
I absolutely hate pump articles because they can have short term effects on a share price and usually put those in control of the pump in charge as they begin to dump.
The chart of this company shows a company that has flat lined and nothing more; if investors want to gleam hope from something then they should look at the investors and who’s holding their ground (insiders own plenty and even a few have added over the last year). They should also look at the value of their Intellectual Property. This company continues to develop new products and receive new patents; their intellectual property is worth far more than the charts show. No pump, no hype, just a ton of potential on a gamble that the new CEO will figure out how to turn the company around. Turnarounds don’t happen overnight so the chart tells me nothing, but given a bit of time this could turn into a thing of beauty.
Thought it was a dumb article regardless. The stock is up on likely need for fundamental news on financing and possibly production on this next cc. They also have now twice presented at micro cap meetings and seen volume spike up soon thereafter. I don't know what vibe they are giving private investors in 1 on 1 meetings at these things but someone seems to buy and short interest can't handle addition demand.
Sure being above moving averages generates additional attention and good volume could kill shorts. As such I don't mind the attention.
But fundamentally, is this priced bellow IP value? Will production costs be lower in new factory under lessons learned and sugar source independence? Will demand for the product be much higher with new markets (additive markets in PVC and PLA)? Does the performance improvements in these markets allow for higher pricing?
In any event, super high risk stock due to cash position with potential for immediate huge returns due to high short position and need for immediate fundamental news.
Also helps that analysts might be happy to reward new CEO if disclosure is better and news is good. Recent dramatic market cap growths in similar companies who found production and/or financing could make target upgrades pretty easy.