XNPT presents a potential bounce play

Discussion in 'Stocks' started by miguel007, Dec 30, 2011.

  1. The stock looks oversold and could bounce starting tomorrow. Looking closely at the daily technical chart the MACD is showing a bullish divergence. This signifies that the prevailing trend is weak. If the prices fall to a new low but MACD traces a more shallow low, it would mean that bulls are ready to gain control, and this would identify strength at stock bottoms. In the above chart, you can see that bears are losing some momentum. One positive sign comes from insider transaction as company directors have been buying tons of shares since November. XenoPort, Inc. is a biopharmaceutical company focused on developing and commercializing a portfolio of internally discovered product candidates, which utilizes the body’s natural nutrient transport mechanisms to improve the therapeutic benefits of existing drugs. It has a market cap. of 127.62M no debt and lot's of cash $103M. Shares shorted have decreased from 2,973,400 to 2,749,900 month-over-month. The stock is a short squeeze candidate, with a short float at 8.1% (equivalent to 8 days of average volume). Of the 9 analysts that have set a target price on XNPT, the lowest price target stands at $7.00. This implies a current upside of 95% from current levels around $3.60. I bought today some shares very close to today's bottom. The stock seems to be undervalued and there is still good room for appreciation.
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  2. KBaines


    Where is your critic SkepticTrader when we need him? You are nothing but a pumper and your past selections have been atrocious. You were pumping this very same stock on December 2 when it was at 4.83 and it's now at 3.75 and has been even lower. You also pump these garbage stocks on the Traders Talk board.
  3. nitro