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Genocea Biosciences – a Good Buy and Hold Stock

Yaron Mazor
Genocea Biosciences – a Good Buy and Hold Stock

The broad market trend is at a crossroad and its next direction is uncertain, it is unclear whether to buy or sell stocks.

In these market conditions, I am looking for “Non-conventional” buying and/or selling opportunities. And the equities I discuss are not necessarily correlated with the major market indexes performance.

What am I looking for?

Here is one example currently running on my personal account. Recently, I bought 4,000 shares of Genocea Biosciences, Inc., (NASDAQ: GNCA). This company is listed in the Healthcare sector and Biotechnology industry.

Trading BioTech companies carry a high-risk potential, especially those which are in Pre-clinical phases and at the beginning of their pipeline, however, the profit potential is relatively high.

So, why did I pick this stock?

  1. Statistics – this is the first parameter that I check before making a market commitment. The reward to risk ratio in this trade is positive. Since the beginning of March 2018, the equity has traded between the $1 and $1.25 level, and it has reasonable midterm upside between $2.5 and $5, and this is where my first profit target is set. The long-term potential could be double digits and more, depending on Phase 1, Phase 2, and eventually FDA approval.
  2. On Feb 6th of 2018, Needham & Company, a globally recognized investment banking firm upgraded its recommendation from Hold to Buy with a price target @ $3. As a result, the stock price jumped more than 10% in one trading day with 5 times its average daily volume. Furthermore, Analyst Joseph Pantginis at H.C. Wainwright initiated coverage on the equity with a year’s price target of $5 and Cantor Fitzgerald initiated coverage with an overweight rating and a price target of $5.00 as well. Additionally, market analysts are expecting earnings to become less negative, and expect its upward trend to continue for the next couple of years.

About the Company:

Genocea Biosciences, Inc., develops personalized cancer vaccines, utilizing its proprietary discovery platform AnTigen Lead Acquisition System to identify new targets that are specific to individuals and offers designed immunotherapies and vaccines that act through T cell immune responses.

Again, currently, I am holing 4,000 shares with an average cost of $1.24 per share.

Yaron Mazor is a senior analyst at SuperTraderTV.

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Any investment recommendation presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. 

This article was originally posted on FX Empire