Trading Week 6/27/16

What an exciting week coming to an end and we can't wait for Monday. Brexit shook up some of our plays, luckily we stayed out of forex due to the risk trading such an event. Our cryptocurrency plays knocked it out of the park with ETH recovering from 0.0015 to 0.0023 and XRP moving upwards strongly after our alert.

Forex Play

Waiting for volatility to revert back to normal from Brexit aftershocks. We will most likely have a new play next week.

Stock Picks This Week

VVUS (VIVUS) A biopharmaceutical company developing and marketing therapeutic products mainly. It has two approved therapies by the FDA including a product that treats ED. Price action has been interesting here with price stable around $1.10 at the beginning of 2016 before $1.80 on big volume for over a month before depressing back down to $1.00 levels, this recent push was based on investors hearing chatter on new FDA filings for generic versions of STENDRA, their own ED treatment medicine.

With Institutions like North Tide Capital heavily investing into VVUS at the price of $1.12 and $1.40 we see huge price growth possible, institutional ownership hovers around 40% however shorts are heavy right now with 27 days to cover, this can end up helping the price growth as shorts try to buy back and cover their positions in addition to investors being attracted at this 1.00-1.15 price level. VVUS is highly leveraged with their finances more-so than usual pharmaceuticals giving them room for faster growth but no room for mistakes. Price to sales puts the company in a nice spot compared to its peers, we see high growth in the future here and we recommend you keep a tight watch on VIVUS' future financing options, cash flows and we should see a real possibility of huge growth and achievements for the company.

Buy under $1.05

MDVX (Medovex) A development-stage company making/marketing patents and tech info in the medical field. Their main system DenerveX treats joint issues and pain. They recently reached a milestone on a live tissue model test with the DenerveX system. Medovex is riding on the momentum from their previous announcements lifting share price up to $2.25 as investors rushed in to buy before backing off over the course of the month as Brexit tensions heightened. Back to a reasonable price of $1.50 we see a good opportunity to buy back in as other investors think the same. Short term cash flows look to be improving here and price to book ratio is very low.

Buy under $1.40

XXII (22nd Century Group) Although a consumer staple this company is mainly a plant biotech, focused on tobacco and plant research. They are working on being able to fine tune and change parameters of tobacco plants like changing nicotine levels to help smoke cessation in addition to manipulating cannabis plants to increase the THC levels in them. This company has silently been increasing revenue each year and is on track to being profitable in the future as finance and R&D debt is managed properly. Share price started the year at $1.20 and has been slowly battled down to a more reasonable $0.79. As XXII is fairly valued and resumes some stability we see an excellent entry point for a swing trade here.
Buy under $0.77

Cryptocurrencies

The DGB (Digibyte) order book is shifting around and thickening up again looking ready for a move up from 50, over 30 Bitcoins of support buys around 50 satoshi.

NXT making interesting moves upward with buying pressure from china and after new research we have added NXT to our long term plays here.