|Cleveland BioLabs' big climb continues|
|By Staff and Wire Reports|
|Monday, 11 October 2010 16:58|
Cleveland BioLabs, Inc. (Nasdaq:CBLI) established a new 52-week high as investors continue to be enthusiastic about the firm's long and short term future.The recent rally has been accompanied by higher than average volume, which adds to the momentum we first told our subscribers about in August; when the stock was still trading in the $3+ dollar range. Since then, Cleveland Biolabs has returned over 70% to readers who followed our trade alert. Cleveland Biolabs is currently above its 50-day moving average of $4.41 and above its 200-day moving average of $3.83. Look for these moving averages to climb to confirm the company's upward momentum for some time to come.
BioMedReports' M.E. Garza recently reported that the company is in line for additional U.S. government grants as well as foreign (Israel) government orders.
"There was a great deal of short interest in this stock," says Garza. "The problem for the shorts was that they were hoping the stock porice would come down after they got the government order a few weeks ago, but with other catalysts ahead, there was no way share holders were going to sell. Many of those shorts were actually computers which were trading based on a series of check-lists without taking into account the market intelligence and reporting that we provide. While many of those shorts have begun to cover there are still a great number of funds and investors hoping that they won't have to cover, but with some analysts calling this a $40 to $60 stock within two years, I think the pressure will continue to against them. Also as a result, you're probably going to see a stronger than anticipated push when good news hits."
A glance through options data shows that an unusual volume of call contracts was traded for CBLI today. There were 4,279 call contracts traded compared to the ten day average volume of 1,170 contracts. On the put side, only 25 contracts exchanged hands.
We continue to believe CBLI is a great play with a very bright future. Smart investors should definitely do their homework on this one and below are some research links that can get you started:
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