Six stocks to keep a bullish eye on this week Print E-mail
By M.E.Garza   
Monday, 12 April 2010 06:36

There are several stocks that biotech investors should keep an eye on this week. Many of them have been rising in value since we first started talking about them here, but none more than last week's big winner, Radient Pharmaceuticals (AMEX: RPC).

We alerted our subscribers to Radient last week when it was under $.30 and it has since gone over $2 (last Friday) before pulling back a bit. As we understand it, a very special combination of "behind the scenes" debt conversion proposals and a massive short squeeze may cause the stock to go higher, but I am concerned- purely from a technical analysis standpoint- that the parbolic run upwards may need to take a breather (see the stock chart at the end of this article). If it doesn't take that breather today, then it will likely do so tomorrow. Still, the stock could see $3 or more in the short term due to not only the fact that if terms for that debt conversion are accepted, the number of outstanding shares will be reduced. In the meantime, there is a great deal of not only shorting, but "naked shorting" going on here. Those shorts are going through a massive squeeze and one firm was forced to buy several million shares of the stock on Friday in order to cover their position. Thus the massive late day run. More lined up to do the same, apparently.

I'm with Roth Capital who issued this statement about Neostem, Inc. (AMEX: NBS): "We believe NeoStem's shares warrant a higher valuation based on 1) a growing profitable business with Erye pharmaceuticals, 2) multiple long term stem cell therapeutic and cosmetic opportunities in China and the U.S., growing interest in NeoStem's VSEL technology and 3 potential U.S. government DoD grants for injuries such as wound healing."

This is a company that has multiple catalysts ready to ignite and big news on any number of fronts could send this stock much higher. Keep your eye on morning news wires and on the developments surrounding the company's VSEL technology in particular. The management team is doing an amazing job of keeping several balls in the air and adding value to shareholders. At the current price, it is still undervalued. Look for a more in-depth piece about NBS later this afternoon or tomorrow in this space.

Rexahn Pharmaceuticals, Inc. (AMEX: RNN); another stock which we shined the spotlight on several weeks back when it was trading at $.70;  has a big announcement scheduled for Tuesday and it will be interesting to see how the stock reacts to that announcement. I know that the table is being set for a major feeding frenzy from big pharma companies who may want to move in to partner with the company based on pending public release of clinical data results associated with not one, but two of the company's drugs. I keep saying that that is a $7 stock waiting to happen in the short term. Keep an eye on the price action today because the stock could realistically hit a high at previous resistance levels of $4.40 in anticipation of the big announcement. Be sure to follow the action tomorrow after the press conference, which is scheduled to take place at the Nasdaq MarketSite in New York at 12:15 EDT.

I keep getting emails about Millennium Biotechnologies Group Inc. (OTC BB: MBTG.OB). We know that a big beverage company (most rumored to be Anheiser Busch InBev) is looking to make an investment into the company and we reported that major developments are underway, but sources tell me that the first thing that will cause the stock to move, in anticipation of the other events, is the official name and stock symbol change to Inergetics, Inc. That change "could happen any day now" and after that, the pieces should start falling like dominos. MBTG longs, hang in there.

The other longs which should be happy with rumors and news developments include shareholders in NewCardio, Inc. (OTC BB: NWCI.OB). Recent management meetings with potential partners went well and we should be hearing about additional revenue streams just like the one announced last week and the one announced two weeks prior to that one. That should continue the positive mood amongst investors as we wait for a big announcement that could triple or quadruple stock value from today's levels.

Finally, our readers keep asking me about the "IMGG-like" imaging company that we teased two weeks ago as a possible subscriber-only trade alert. That pick should be coming later this week- but only if we are able to confirm rumors that the vastly undervalued OTC company with an FDA approved technology is on the verge of a major deal or partnership with a 25 billion dollar big board company. If our investigation continues to point in that direction then look for us to issue that trade alert- which should be followed almost immediately by the rumored announcement. Keep your powder dry because that alert could come either Wednesday or Thursday of this week and that announcement could send the stock price up multiple times higher than where it is trading today- just like RPC's alert did last week.

Disclosure: Long NBS, NWCI, RNN

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