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SISI is in breakout mode and I like it at $5. The company has 32.4 months of cash remaining, based on quarterly cash burn of -$2.11M and estimated current cash of $22.8M. With the low risk of the offer, the underlying trades above the low of $3, exit at $4. The target is always 10-20% in 1-4 days if entered.
FREQ has a strong ascending triangle and has a breakout range of $5 at the open. The company has 18.4 months of cash remaining with quarterly cash burn of -$14.21M and estimated current cash of $87.2M. I chose the weekly 1-year chart because I see it expanding here. Definitely one of my favorites to watch this week.
ORIC is a monster from Friday’s Lightning Alert watchlist, “ORIC had good news with Pfizer and already had low cash needs. The company has 33.5 months of cash left. Quarterly cash burn is estimated at -$19.94M and current cash at $222.6M. This includes a gap of $7 I hope we see. The weekly 2-year chart illustrates the range well. If that long base is broken, it should open.
It had every reason to continue until Friday. Notice how the weekly chart above looks the same as the FREQ weekly chart?
It’s still in play, but an ‘easy’ trade, if there is such a thing, entered Friday at that $4.70 breakout. Overall a great lesson on why stocks are going up and what to look for both fundamentally and technically.
Moving to the right.
NOTV is the Fishhook I’m looking at, which is an oversold chart pattern. It showed early Thursday and Friday that as long as it holds the upper $4s, watch for a gap recovery and a move to $8. The cash requirement here is low, but historically they have frequently raised outstanding shares and have the ability to do so again through a shelf or S-1. The company has 30.2 months of cash remaining with quarterly cash burn of -$1.8M and estimated current cash of $18.1M.
BMTX is cash flow positive at $2.48M on a quarterly operating cash flow basis, and has been ripped from $5-$6 per fish hook, which is a good example of what I think will happen to NOTV soon.
XPON had a monster Friday and would like to continue this week. The company announced an exclusive lithium battery supply deal, fueling a 139% rise. The company has 12.6 months of cash remaining, based on quarterly cash burn of -$1.57M and estimated current cash of $6.6M. According to Dilution Tracker the risk of offering here is low. In the absence of an offer, I would look at the $2 support for the underlying trade and see if it revisits $4.
APE had an impressive finish last week and actually broke long-term trendline resistance. It’s a very neat move, but I question whether it can be sustained. The company has 11.0 months of cash remaining, based on quarterly cash burn of -$198.4M and estimated current cash of $726.0M. The volume is impressive but unlikely to last. If it holds $1.50, strong is strong, and it plays to move to $2, $3 in the middle.
IMRN is one to watch in 2023. The company has 77.2 months of quarterly cash flow of -$0.61M and estimated current cash of $15.7M, meaning low risk of issuance. It tried to breakout on Friday’s good news and was very active in the premarket, however, shortly after the open it gave up its attempt at $3 and settled below $2. If it holds $1.80, I believe it could actually run to $3 very soon. It’s a confusing chart, I understand, but the news was good, so if they stop selling, it should.
RAYA did their IPO the same day Powell raised rates a few weeks ago, pretty terrible timing and the penny stock went down with the 2000s. Then it went back to $4. If it takes $3.75, I’d look for a late IPO spike of $1-2. Small company and doesn’t seem to have many sellers.
WAVD buyer beware. Shares rose 44% on Friday, but they were out of the money. Their supply capacity (shelf or S-1) is low but their demand for money is high. The company has a cash balance of -0.3 months. Quarterly cash burn of -$1.7M and estimated current cash of $-0.1M.
NH is another runner from Friday, so don’t be fooled by the pop. The company has -2.7 months of cash remaining, based on quarterly cash burn of -$8.41M and estimated current cash of -$7.6M. They split the stock 1 to 15 upside down, which is common just before an offering.
PHVS is one of my favorite Fibonacci patterns. The company has 38.1 months of cash remaining, based on quarterly cash burn of -$14.34M and estimated current cash of $182.3M. I think the limit here is $15 and if it tests $12, look for that breakout.
SMMT recently landed a monster deal and is going strong. The shorts are looking for an offering here, and while price action suggests they’re not going to get it, there’s medium risk according to the Dilution Tracker. The company has 20.5 months of cash remaining, based on quarterly cash burn of -$15.59M and estimated current cash of $106.7M. As long as the Fibonacci retracement holds, I’m bullish to $5-$6.
AMAM is another Fibonacci retracement stock that I keep watching and I like that they don’t get diluted too often. The company has 13.4 months of cash remaining, based on quarterly cash burn of -$20.1M and estimated current cash of $89.5M. This week I expect a move from $1.50 to mid $2.
Lightning Warning! Why, how, what
My nightly newsletter explains the swing trade alerts you’ll receive the next day.
For example, Wednesday night was on the APRN watch list. Here’s what it said.
“…This is a dead cat jumping opportunity. Short films are okay with this, but it’s so obvious, there’s no one to sell. Look for $1-$1.20 above $.84.”
Now that you know what to expect, I’ll be posting real-time trade alerts to your smartphone (like a text) and email during market hours.
Timely education is important. The time stamp in the ‘text message’ seen above is 12:23 PM ET.
This is what subscribers saw on Thursday.
Here it is Friday morning. 7 stocks with $ cash flow are up 10% or more as I type.
$.84-$1.19 = 42%
Not all trades are sure to be winners, but when they are, they seem to be.
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- Why Penny Stocks Could Make a Big Move
- How penny stocks make that move
- How about when they move
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