Xenomics has been on a tear over the last two weeks, and the stock made a parabolic rise in the last two trading days. Weeks of low volume accumulation finally led to a tremendous breakout.
This stock is proof that you can never tell what’s going to happen in the small stock world. Three months ago I would not have picked this stock as a candidate for an outstanding short term move.
The company has been getting some great ink in the medical community of late, and the publicity has led to a significant rise in the price of the stock.
I published a “first look” edition on this stock in mid March at $2.50. Today, it closed at $4.46 for a cool 79% gain in three months.
The company is in its infancy, so this idea could be years from maturity, and there could be a lot more to be made in this stock. However, in light of the parabolic rise, I would not be a buyer at these levels. This might be a good opportunity to sell either part or all of your position with the idea of buying it back on a pullback.
In light of the run in the stock, this will be a perfect candidate for Mr. Fibonacci’s 38.2% and 61.8% retracement as an entry level if you don’t own this stock or choose to sell and want to buy it back.
As always, your comments and questions are welcome.
Now thats great, talk to us about AMW, ZAP, FMLY, NTDL, should i go on ?
Editor: No, I’ll let you do the talking. The fact that I allow this post to go up should at least say I don’t hide from the failures as well. Everything ever published is still on our site, and we don’t hide from our failures. It happens in microcaps, and if you can’t take it, this end of the market is not for you. I don’t understand why you waste your time with this newsletter if you have lost interest.
The comment above from tasteless was “tasteless”. I can share in the pain from NTDL, ZAP, FMLY, and AMW but I have other microcaps BIPH and BOCX which have been extreme wealth builders for me. I seem to alway miss your plays that make good profits. It is almost to the point that every issue you follow, I should throw some $$ towards becuase a few winners make up for several losses. Keep up the good work and the excellent resource!!!
Editor: Thanks for the kind comments. Just like with anything, sometimes I get hot, and sometimes ice cold. However, you never know which one is going to get it done. One or two always do. I believe the best way I can improve is try to identify the losers earlier in the process.
Don’t let a few negative comments turn you off. Folks reading this or similar micro-cap newsletters know what time it is. This is a risky undertaking and folks must be able to withstand the ups and downs, winners and losers alike. Im watching this one and so far, its price seems stable. Looks like a good one for the long term.
Editor: Thanks for the positive overview. The microcap world is risky, but can be a lot of fun when you find the winners.
What is your current recommendation on Xenomics? I notice that there has been no news or anything about it for some time? I am considering it, since I am in the medical field.
Editor: XNOM has been going through a very lengthy registration process. Once completed, the company will have a lot to say. Their replacement test for amniocentisis has a lot of upside- there will be a repeat of the run in the stock at some point in the future, but it may take some time.
Can you tell me where to find out how to apply Mr. Fibonacci’s ratios to the chart? Which chart is being used?
Editor: You need the proper charting software. If you don’t, it can’t be done. I get my data and charting software from eSignal.
How close are you to the update on XNOM you referred to in your 4/5/06 newsletter? Have you had a chance to read through the “Opportunity Analysis Report” released on 4/10/06 by Laguna Research Group? I’m sure you are quite busy but I’m very interested in your comments. This stock reminds me of HDY due to its enormous potential, although it is clear that they are at least two years away from generating revenues through commercial products. Plus it appears to be very thinly traded at this point. Thanks for your time and insight.
Editor: I love their technology, but the stock clearly needs a larger audience. The company basically went “dark” for 9 months as they went through a regulatory process. Should start to trade a bit better. For a two year hold I believe it is an excellent speculation.
Thanks for the feedback from my prior message. Are you still planning to update your writeup from last year? Also, do you have any insight as to why the prior CEO (Dr. White) left the company a couple months ago? Thanks.
Editor: Yes, there will be an update coming. I heard they replaced White with someone better, but that’s just anecdotal.
What would a resonable stop-loss be for this one? If purchased at $1.48 should I hold considering it is common knowledge that this one won’t generate $$$ for some time? Thanks Mark
Editor: Always a difficult question, because there is no right answer. It depends on how much risk you are willing to take. Since the stock is very thinly traded these days, it is tough to pick a stop loss technically. Therefore, you must go on percentage of principle you are prepared to lose. For you it could be 20%. I think in a microcap situation it should be more like 30%, because you can get so much volatility. The way this stock is behaving, you need to be long term. Microcap investors have turned their attention to energy thanks to oil prices, and biotech is kind of off the radar screen for now. XNOM should perk up when it turns back.
Any insight on the big drop in XNOM in the last couple weeks? It seems to be in a free fall with no apparent reason after staying around $2 for nearly a year.
Editor: I have no idea why this one has fallen so far in the month of May, which was a horrendous month for small and microcap stocks. It looks like the company is still on track. I guess all I can do is refer to the May 27th edition entitled “Don’t Say You Weren’t Warned”, wherein I cautioned everyone we could be moving into a market environment where these kinds of drops could be happening. It could be a heck of a good buy at these levels if you like the technology.
Any comments on the yesterday’s price surge to USD 2.00 with an almost 65% gain during the session? Volume also seems to be abnormal.
Editor: I am not close to the company, so I have no intimate knowledge of what changed. However, since the stock had recently swooned considerably, my guess would be someone group has been selling, and some group has been wanting to buy. They were just waiting to see how low the seller would take the stock before pouncing. As I have been saying, this company has very exciting technology- this action just bears up that other people believe as well. If you are a long term investor, this action bodes well for the stock’s future and the validity of the company.
Because XNOM was not apart of latest newsletter, I’m guessing you are down on the stock for now? What was your summer SSL for this stock? Thank you.
Editor: I will comment on XNOM from time to time as information warrants. However, if you recall our long term history with that one, I suggested selling at about $4. I didn’t have an SSL over the summer, as it is really not a core following. However, long term it has a lot of promise.