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| | | Now What?
Every once in a while we profile stocks that either leap higher or drop dramatically in a matter of weeks. When that happens, we feel we need to re-visit these stocks to provide some review and guidance as to what to do.
A little over two weeks ago, we published our 2nd Annual Thanksgiving Treats and Turkeys. Our three treats jumped big time and, unfortunately, so did one of our turkeys. With the big moves in such a short period, here is our updated outlook on these stocks.
TREATS:
AcelRX Pharmaceuticals, Inc. (NASDAQ: ACRX - $4.14)
ACRX reached a new high of $5.25 just a few days ago, but the stock has been a victim of profit-taking the past few trading sessions. The stock is back close to our profile price of $3.86 and we would take the opportunity to get back on board again. The move higher was driven by the release of its lead product's Phase 3 trial results, which were very positive. The trial demonstrated that ACRX met its primary endpoint for the non-invasive, handheld system that allows post-operative patients to self-dose to manage their post-operative pain. ACRX has other products that have already completed Phase 2. The stock has hit a new 52-week high and still appears to be very attractive on a valuation basis, given its deep and late-stage pipeline. There may be risk that it could drift on no news but any events or updates would act as a trigger for investors to accumulate the stock again.
To read more click here >> or visit http://www.pennystockjunction.com
Getting an Education
When you follow stocks in a narrow, or at least a somewhat limited space, you tend to see the same symbols popping up over and over again among the big daily movers and those trading on pretty heavy volume. Over the past year, a dozen stocks or so seem to have occasionally hit the big daily losers list. The cynic in me chuckles and shakes his head each time these same stocks pop up. Nonetheless, I try to commit these symbols to memory even if I do not catalogue them. Believe it or not, there can be an advantage to following these stocks, as a lot of money can be made with big annual losers, especially if they can execute some semblance of a turnaround.
This notion is extremely important to recognize during this time of year. As we near year end, and the bulk of investor tax loss selling is completed, the big losers of the year tend to be oversold. Moreover, they often become some of the biggest gainers during the last week of the year and the first week of January. Investors always think about how well small-cap and penny stocks tend to perform in January, which is largely true, due to the second phase of the January Effect.
For example, since 1991, the S&P 500 Index has risen by an average of nearly 7% in January alone. And it nears 10% when the prior December performance is added to the return. Of course, small stocks tend to perform even better. However, the group that typically generates the greatest return is the previous year's biggest losers.
To read more click here >> or visit http://www.pennystockjunction.com
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