Small Cap Network's  Instablog

AVI BioPharma, Sequenom, Inovio Biomedical, and CytRx Corporation all close to making a major move higher.

By James E Brumley

Despite the market being in the red on Monday, most the biotech industry's stock seems to be doing just fine. In fact, CytRx Corporation (CYTR), Sequenom, Inc. (SQNM), AVI BioPharma, Inc. (AVII), and Inovio Biomedical Corp. (INO) look like they're all lining up to be the group's best breakout candidates. Here's a closer look at each biotechnology stock's chart, and what it may tell us about the near future.

Oh, and just to be clear, these four picks aren't necessarily the sector's hottest over the last few weeks. In fact, none of them looked overly-healthy earlier in the month... that's the point. Our search is for the next big winner, not the prior big winners.

It was only a couple of weeks ago that AVI BioPharma, Inc. (AVII) looked like a complete disaster after the company raised $35 million dollars by selling more common stock.... salt in the would after reporting that Q2's loss was bigger than the loss taken  a year earlier.

Now, it appear the market thinks its treatment of AVI BioPharma has excessively harsh. Following the August 29th bearish gap, we've seen nothing but upside from AVII shares. Today's high-volume move is the strongest re-accumulation we've seen since then.

Though the company's MD treatment is only on Phase I, AVI BioPharma offers something many other biotech companies can't.... real revenues right now. They may not be great, but between the pipeline and current revenue-bearing projects, investors could do a lot worse than AVII.

Our near-term target is a return to the $2.50 area.

Following the big gap up from late July, Inovio Biomedical Corp. (INO) shares were highly vulnerable to a pullback. That worry was legitimatized by the gradual decline we witnessed from INO in early August. Over the last four trading days, however, we've seen this stock make higher lows, and we've seen an attempt to make higher highs. Has the big gap-closing pullback been staved off?

It's still too soon to call this a breakout yet, but something can be said of INO that can't be said of most other biotech names - it's not overbought right now.
 
The line in the sand is the ceiling around $2.34. If that line cracks, the Inovio Biomedical are apt to gear up for round 2. It will take a little more volume than what we've been seeing recently to make it happen, but INO is still one of the stronger biotech breakout ideas on our radar.

No target price; just keep tabs on it.

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The pullback from CytRx Corporation (CYTR) in late July and early August may have been just the dip would-be buyers needed. After hitting a low of 84 cents on the 17th, we've seen higher highs and higher lows - generally - from CYTR shares.

The technical signal here is a bullish MACD crossover. This indicator isn't often successful or helpful, but has a solid history when it comes to trading CytRx Corporation. The fact that the cross occurred while the MACD lines were under zero carries even a little more weight, in that is suggest a full 'reload and relaunch' for CYTR shares.

The catalyst for the buying has been positive data so far on a stroke drug. The research has only involved animals so far, but that's a positive situation for the stock - it leaves much more good news to be released in the future. In fact, the best thing CYTR share shave going from them is a pretty robust CytRx Corporation pipeline.

We're not setting a target price for CYTR either, as the April/July rally far exceeded anyone's expectations. Just ride the trends as long as it lasts.

 

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eWorld Companies, Magnum D'Or Resources, SMF Energy Corporation, and Smokefree Innotec may be artificially strong today.
By James E Brumley

Before jumping onto the next rising-star stock, traders may want to think twice about today's apparent strength from eWorld Companies, Inc. (EWRC), SMF Energy Corporation (FUEL), Smokefree Innotec, Inc. (SFIO), and Magnum D'Or Resources, Inc. (MDOR). Though the buzz is loud, it may only be loud because each of these stocks was heavily promoted within the last 24 hours.

Here's the 'rest of the story' investors may need to know before taking the plunge.

By the way, note that the investor awareness efforts may or may not have been sponsored or purchased by the companies in question.

To their credit, the pictures released by Magnum D'Or Resources, Inc. (MDOR) and/or its promoters pump up the credibility factor quite a bit - at least the market knows it's a real company with a real facility that is far more apt to drive real revenues than, say a mere shell company.

Magnum D'Or Resources is a rubber-recycling solutions provider. The pictures are of the newly-purchased tire landfill property... a 120+ acre (30+ million tires) facility. The company says they're sitting on $130 million worth of contracts to turn all that rubber into something somebody else can use. That's the upside.

The downside is that this is a brand-new venture for Magnum D'Or Resources. Prior to now, Magnum's quarterly revenue was measured in tens of thousands of dollars. That's not to say that the jump to $130 million in revenues (no time frame was offered) is an impossible leap. It's just that there's not much fiscal clarity.... particularly in terms of the cost of the landfill property. 

Nevertheless, analysts have established a price target for MDOR of above $3.00 per share. At that price, the market cap from MDOR would be $137 million. Depending on the rate that Magnum can collect on that $130 million in contracts, the target price may be reasonable. The hype in the meantime may override reason and make for very erratic trading.

eWorld Companies, Inc. (EWRC) was also the subject of a pumping campaign this weekend.  Rather than describe it, let's just take a look at a segment of it (only we corrected the typos)...

EWRC looks ready to RUN HARD - This is a trader's special.... could move up very quickly and make our members serious cash.... The stock was on fire last week and it gained 86% as it moved from .0007 to .0013....The stock is a trader's special as liquidity is enormous in EWRC.  The stock traded a staggering 145,255,600 shares.

We're still not clear on what a 'trader's special" is but whatever.

The more tangible news stemmed from a press release that eWorld Companies was on track to produce $1 million in gross profits per month through its Boomerang Media Station(r). That's actually a pretty exciting milestone for the web distributor of third-party movies, music videos, webcasts and other streaming video content.

The challenge here is that there's so little information about the company... no audited filings, and the filings we can find are pre-revenue. All companies start small, but pink sheet companies need to by hyper-transparent to interest investors. This one isn't.

In any case, liquidity had indeed improved and the interest in the stock is growing. That might make for a good trade, but for longer-term holders of EWRC there are still an awful lot of concerns.

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If the name SMF Energy Corporation (FUEL) rings a bell, it's because the stock made our most-promoted list a few days ago as well. Though the effort seems to have worked early in today's trading session, there's been little upside follow-through.... much like last time.

SMF Energy Corporation is a mobile fuel provider, meaning they bring the gasoline/diesel to where the fleet is rather than the other way around. The concept and business model is fine, as we mentioned last time. The worry is the capitalization.

The new market cap of $14.8 million versus Q1's $35 million in revenue seems uncanny, in favor of the stock. The tough pill to swallow is that recent recapitalization reduced short term debt by $9.5 million, and the total debt on its balance sheet was reduced by $4.4 million. The annual servicing expense for interest and dividends was reduced by over $1 million, and shareholders' equity improved by at least $4 million.

Those are all positives, but those are also symptoms of a company - when the market cap and revenue are what they are - that's heavily burdened by debt.

Today's pumping effort, nevertheless, seems to be getting traction. Given the massive amount of volume we've already seen though, one can't help but wonder why shares aren't even higher than they are. Could someone else be selling into the promotion-induced strength?

And finally, Smokefree Innotec, Inc. (SFIO) is up firmly today on a concerted investor awareness effort of its own.

The product is actually quite clever - Smokefree Innotec makes an odorless cigarette-style electronic device that delivers a liquefied tobacco extract. They're designed to protect the non-smoker from second-hand smoke, while simultaneously offering smokers a way to enjoy a smoke-free cigarette anywhere (like places where smoking is prohibited).

Crazy? Don't laugh yet - the 'Zig' is now part of a pilot test marketing pilot in some European markets. It will soon, hopefully, be introduced in most countries in the European Union including Spain, Italy, Germany, France, United Kingdom and Scandinavia. Asian and American markets are hoped to follow.

The stock is up today on the announcement of that test market program for Europe, and last week's distribution agreement for the South American market (and the promotional effort). 

What potential SFIO investors may want to consider about this start-up is that it's a one-trick pony. There are no revenues yet, and the only revenue driver in the pipeline is the Zig. Distribution agreements will mean little if there's no customer demand.

Yes, the idea of a smokeless cigarette seems very marketable.... to non-smokers who don't like second-hand smoke. The smokers are the one who will have to pay for the device though. The test marketing may indicate more regarding the viability of Smokefree Innotec.

In the meantime, SFIO is an $11 million company with no revenues, no real certainty of impending revenues, and no real idea of what kind of revenue (let along profits) may be in store, if any.

If you'd like to know when or if we issue trading alerts specifically for MDOR, EWRC, SFIO, and FUEL, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.

POZEN (POZN) gains on FDA review news, Encore Wire (WIRE) joins the S&P SmallCap 600 and Spectrum (SPPI) rides high on positive report.

By Dennis Askew

While the bears generally controlled the last day of August trading, good news for POZEN (POZN), Encore Wire (WIRE) and Spectrum Pharmaceuticals (SPPI) brought in some brave bullish traders who were also encouraged by the news that the Federal Reserve has made $14 billion in profits on loans made in the last two years. The Fed earned approximately $19 billion from interest and fees charged to institutions that tapped 'liquidity facilities' during the credit crisis.

Gaining 6.96% ($0.45) in mid-session is POZEN Inc., (POZN) http://www.pozen.com/ currently trading in the $6.92 range on the Nasdaq. Bio-Pharma POZN has a new market cap of $206 million. POZN has a 3-Month average daily trading volume of 74,230 shares and topped 101,793 shares traded by noon EST.

POZN management said today the Company received a $10 million payment from partner AstraZeneca (AZN on the FTSE) while the Food and Drug Administration reviews its application for Vimovo, which is aimed at preventing gastric ulcers in patients with chronic pain. London-based AstraZeneca and Chapel Hill, N.C.-based POZN have been developing the drug since 2006.

POZN asked the FDA to review the application in June and expected the milestone payment when the agency agreed to conduct the review. The drug is a combination of the painkiller naproxen and esomeprazole magnesium, the active pharmaceutical ingredient in AstraZeneca's top-selling ulcer drug and heartburn medicine Nexium.

POZN also has a development and commercialization alliance with GlaxoSmithKline (GSK) for Treximet which is used for the acute treatment of migraine attacks.

At $6.92, POZN is beneath its 52-week high of $12.34 set on 09-22-08 and above its 52-week low of $4.50 set on 03-06-09. At $6.92, POZN is below both its 50-day and 200-day moving averages. POZN is widely held by institutions and its shares out versus float ratio is near-parity.

Gaining 7.63% ($1.68) this morning on two pieces of good news is Encore Wire Corp., (WIRE) http://www.encorewire.com/ currently trading in the $24 range on the Nasdaq. WIRE has a new market cap of $552 million. WIRE has a 3-Month average daily trading volume of 146,562 shares and easily passed 175,562 shares traded in early trading.

The good news for WIRE came on Friday: The Company declared a regular quarterly dividend of 2 cents per share; payable Oct. 16 to shareholders of record Oct. 2 and WIRE will replace Axsys Technologies Inc. (AXYS) in the S&P SmallCap 600 after the close of trading on a date to be announced. Good exposure news for WIRE.

WIRE manufactures copper electrical building wire and copper cable for the residential, commercial, and industrial construction industries.

At $24, WIRE is at its 52-week high of $24 set on 04-20-09 and is far above its 52-week low of $13.49 set on 11-20-008. At $24, WIRE is ahead of both its 50-day and 200-day moving averages. WIRE has trailing twelve month revenues of $780 million and a trailing twelve month diluted EPS of $1.29. WIRE is widely held by insiders. Its shares out versus float ratio is at parity and the stock is very stable.

Gaining over 6.75% ($0.52) this morning is Spectrum Pharmaceuticals Inc., (SPPI) http://www.spectrumpharm.com/ currently trading on the Nasdaq in the $8.21 range. SPPI has a new market cap of $344 million. SPPI has a 3-Month average daily trading volume of 1,775,420 shares and it surpassed 2,127,407 shares traded today by mid-session.

SPPI has an alliance with Allergan (AGN) and there has been quite a bit of speculation lately about AGN outright buying up SPPI. I believe that's added fuel to recent positive outlooks on the Company. Beacon Equity issued a report on Aug 25 that noted, "If approved by the U.S. Food and Drug Administration (FDA), the market for SPPI's drug candidate Zevalin could reach more than $1 billion at its market saturation." That's what investors want to hear.

The SPPI Aug 13 Q2 2009 report pointed out that SPPI had a $106 million in cash on hand and consolidated revenue of $22.3 million, which was comprised of product sales of $18.1 million; $5.9 million from ZEVALIN and $12.2 million from FUSILEV and $4.2 million attributable to the amortization of the Allergan licensing fee SPPI receives.     

SPPI is a commercial-stage biotechnology company with a focus on oncology. In the trial pipeline, SPPI is also developing apaziquone for the treatment of non-muscle invasive bladder cancer. Its phase II products include Ozarelix, a drug being investigated for benign prostatic hypertrophy (BPH), a non-cancerous enlargement of the prostate, and hormone dependent prostate cancer; and Ortataxel, a third-generation taxane. In addition, SPPI has exclusive worldwide rights to the drugs Renazorb and Renalan and related compounds.

At $8.21, SPPI is seven cents past its 52-week high of $8.15 set on 06-30-09 and far, far above its 52-week low of $0.55 set on 10-16-08. At $8.21, SPPI is ahead of both its 50-day and 200-day moving averages. SPPI is widely held by institutions. Its shares out versus float ratio is at parity and the stock is very stable.

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AuthenTec, Inc., (AUTH) fingerprint sensor technology will target Chinese market at the direction of new Vice-President.

By Dennis Askew

U.S. indices were down this morning after China's main index plunged 6.7%, adding to a nearly 3% drop on Friday. The sell-off in Chinese shares has been fueled by worries over bank lending that could affect the country's economy as a whole.

Plunging Right Ahead

Gaining over 29% ($0.62) in early trading today, AuthenTec, Inc., (AUTH) http://www.authentec.com/ set a new market cap of $77 million. AUTH is currently trading in the $2.66 range on the NASDAQ. The 3-Month average daily trading volume of AUTH is 236,362 shares and it had easily tripled that number topping 996,219 shares traded by 10:30 a.m. EST.

The volume surge and stock price gain came on Company news that AUTH will expand into the greater Chinese mainland at the direction of a new Vice President. AUTH has headquarters in Shangai, China and is based in Melbourne, Australia. Dr. Lunji Qiu was named as Vice President & General Manager of AuthenTec China.

Dr. Qiu previously held positions as Vice President of Product Development & General Manager of Atrua Technologies, General Manager of Broadcom China, and held management and engineering positions with Motorola in Singapore.

"His background and expertise, coupled with our expansion initiatives will help us further pursue the tremendous growth opportunities not only in China but the rest of the world, as well," said Scott Moody, AuthenTec Chairman and CEO.

AuthenTec's design center in Shanghai serves as a base of operations for AuthenTec China's software development, sales and technical support teams. The Company recently added three new players to its 28-member China team, including two senior field applications engineers and a sales account manager.

AUTH management noted that China is a key region for growth in AuthenTec's target markets of notebook PCs, netbooks and smartphones. AuthenTec has the broadest portfolio of silicon fingerprint sensors on the market today. On August 7, AUTH reported revenues of $8.4 million for the period ending July third, up from $7 million in the first quarter and ahead of its guidance of between $7.8 million and $8.3 million.

AUTH provides fingerprint authentication sensors and solutions to nearlt 50 million personal computer and wireless device markets via its TrueSuite and Power of Touch applications.  

At $2.66, AUTH is below its 52-week high of $8.39 set on 09-02-08 and above its 52-week low of $1.26 set on 02-27-09. At $2.66, AUTH is ahread of both its 50-day and 200-day moving averages. Auth has trailing twelve month revenues of $45 million. Its shares out versus float ratio is near-parity.

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Trubion (TRBN) sets 52 week high on partnership deal, Eurand N.V. (EURX) soars on FDA approval and Allos Therapeutics (ALTH) drops on FDA questions.

While the broad markets opened with the Dow down a few points and the Nasdaq up a few points, Pharmaceutical SmallCaps Trubion Pharmaceuticals (TRBN) soared this morning on news of a partnership deal with Facet (FACT), Eurand N.V. (EURX) soared on news of an FDA okay and Allos Therapeutics (ALTH) dropped on questions from the FDA about a trail in progress.

BigCap Tech stocks had positive Intel (INTC) earnings to encourage the Dow and the Finance sector had AIG (AIG) rising to $50 yesterday, but lackluster traders kept the market mixed and uncertain this morning and a 4-Month low in a confidence report released mid-session didn't help much, but when there's new money and FDA approvals, it doesn't much matter what everyone else is doing.

Gaining 58.75% ($2.25) this morning is Trubion Pharmaceuticals (TRBN) http://www.trubion.com/ which is currently trading on the Nasdaq in the $6.08 range. TRBN set a new market cap of $110 million. TRBN trades a mere 12,151 shares in its 3-Month average daily trading volume, but new investors (on today's news) pushed the volume past 130,615 shares by 11 a.m. EST.

The huge jump in trading volume and the astronomical share gain came on news today that TRBN has formed a joint, worldwide development and commercialization agreement with Netherlands pharmaceutical powerhouse Facet (FACT) for TRBN drug candidate TRU-016, currently in phase 1 clinical development for chronic lymphocytic leukemia.

TRBN, through this collaboration, can leverage and extend its development of protein therapeutics. The deal includes TRBN receiving $20 million upfront and. TRBN will also have access to an additional $176 million as trial milestones are met. TRBN and FACT will share equally the costs of all development, commercialization and promotional activities and all global operating profits. Also, FACT will buy 2,243,649 shares of newly issued Trubion common stock for an aggregate purchase price of $10 million.

The TRBN Trial Pipeline

TRBN focuses on drugs for the treatment of autoimmune and inflammatory diseases and cancer. TRBN The company, in a collaboration with Wyeth (WYE), is conducting a phase IIb clinical trial for its lead product candidate, TRU-015, for the treatment of rheumatoid arthritis. The TRU-016 drug mentioned above in phase II/II clinical evaluation and a novel CD37 targeted therapy for the treatment of B-cell malignancies, such as chronic lymphocytic leukemia and certain autoimmune and inflammatory disease indications.

TRBN also has a collaboration agreement with Wyeth for the development and commercialization of SBI-087 for the treatment of rheumatoid arthritis and SBI-087 for the treatment of systemic lupus erythematosus, as well as other therapeutics directed to CD20, an antigen that is a validated clinical target present on B cells.

At $6.08, TRBN is above its 52-week high of $5.46 set on 07-28-09 and above its 52-week low of $1.00 set on 12-09-08. At $6.08, TRBN is ahead of both its 50-day and 200-day moving averages. TRBN is widely held by insiders. It shares out versus float ratio is lopsided 18m/9m and I would like to see more shares in the public float.

As a precursor to the news on toady's gains by Eurand N.V. (EURX), I'd like to make mention of how difficult and delicate the process is when any drug, in any phase of a trial, is undergoing FDA scrutiny. The best example is a real one.

Losing as much as 8.49% ($0.66) this morning is Allos Therapeutics Inc., (ALTH) http://www.allos.com/ currently trading in the $7.21 range on the Nasdaq. ALTH has a new market cap of $642 million. ALTH has a 3-Month average trading volume of 838,477 shares and in mid-session today, it had topped 4,620,597 shares traded.

The ALTH value tumble came on news that an FDA advisory panel had questions about the ALTH lymphoma drug currently in trials. ALTH management maintains the drug offers meaningful benefit.

FDA reviewers claimed to have issues with the ALTH application to sell the drug Folotyn based on: 1) 'the clinical significance of tumor response and duration of response' and 2) 'whether the benefit/risk ratio is favorable'. ALTH is seeking approval of Folotyn for previously treated patients with peripheral T-cell lymphoma. The FDA panel will meet next Wednesday to talk it over. ALTH management said separately that Folotyn will help patients who have failed to respond to other therapies were in desperate need of better treatment options.

Never Kick Anyone When They're Down

Next week, the FDA could stall out the trial and more value losses could follow (depending on the news) however, the FDA could turn around next week and agree with ALTH management (in whole or even in part) and the stock could gain back its losses from today and skyrocket on the news.

The ALTH Trial Pipeline

ALTH has Pralatrexate, an antifolate under Phase II trial, which accumulates preferentially in cancer cells and treats patients with relapsed or refractory peripheral T-cell lymphoma, RH1, a small molecule chemotherapeutic agent, which is under Phase I trial to treat patients with advanced solid tumors and non-Hodgkin's lymphoma and Pralatrexate in various Phases for the treatment of non-Hodgkin's Lymphoma and Hodgkin's disease, cutaneous T-cell lymphoma, non-small cell lung cancer, bladder cancer, and other solid tumor indications.

At $7.21, ALTH is below its 52-week high of $9.95 set on 09-03-08 and above its 52-week low of $3.82 set on 10-10-08. At $7.21, ALTH is below its 50-day moving average and above its 200-day moving average. ALTH is widely held by institutions. Its shares out versus float ratio is close enough not to cause any worries about stability.

Gaining 10.78% ($1.45) on the 'approval' side of the FDA coin this morning is Eurand N.V. (EURX) http://www.eurand.com/ which is currently trading in the $14.87 range on the Nasdaq. EURX has a new market cap of $680 million. EURX has a 3-Month average daily trading volume of just 43,848 shares and that volume shot up over 245,620 shares this morning on FDA approval news.

EURX received FDA approval today for the drug Zenpep, a pancreatic enzyme product that treats the inability to digest food due to a lack of enzymes made by the pancreas. Zenpep is the only approved treatment for exocrine pancreatic insufficiency.

Zenpep, which was delayed by the FDA for three months to complete its review, has been approved with a risk evaluation and mitigation strategy (REMS) to ensure that the benefits of the drug outweigh its risks. They do.

EURX plans to deploy its own sales force to market the product and expects to launch Zenpep in the fourth quarter of this year. The drug would come in four doses to meet the requirements of infants, toddlers, adolescents and adults.

EURX Products

EURX has EUR-1037, as an over-the-counter sleep-aid; EUR-1025, an oral formulation of ondansetron, an anti-emetic prescribed to prevent nausea and vomiting; and EUR-1073, an enteric coated, controlled release formulation of beclomethasone diproprionate for the treatment of inflammatory bowel disease. EURX also has Amrix, a sustained release formulation of cyclobenzaprine hydrochloride, used as an adjunct to rest and physical therapy for relief of muscle spasm associated with acute and painful musculoskeletal conditions; and products and services to the cystic fibrosis community.

At $14.87, EURX is below its 52-week high of $18.93 set on 09-03-08 and above its 52-week low of $6.17 set on 12-01-08. At $14.87, EURX is ahead of both its 50-day and 200-day moving averages. EURX is widely held by insiders. The EURX shares out versus float ratio is lopsided 45m/9m and I would like to see more shares in the public float for stability.

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BioElectronics Corporation, SpongeTech Delivery Systems, Las Vegas Sands, and Quality Systems are all setting up some interesting and trade-worthy action.

Don't look now, but a few stocks are getting positioned for what could be major moves in the near future. Charts of SpongeTech Delivery Systems, Inc. (SPNG.OB), Quality Systems Inc. (QSII), BioElectronics Corporation (BIEL.PK), and Las Vegas Sands Corp. (LVS) have all worked their way into suggestive patterns worth a closer look.

Quality Systems Inc. (QSII) hasn't actually broken out yet, but it's quite close - today may well be the day.

In late July and early August, Quality Systems shares broke under rising support (part of a wedge pattern) that looked as if it was the beginning of a major pullback. However, horizontal support around $50.90 once again caught QSII, and kept it within range of a breakout.

Now, thanks to a handful of decent gains with growing volume since the 19th, Quality Systems is knocking on the doors of resistance again.... the same ceiling line we observed with the wedge pattern between May and July.


Bottom line? QSII is worth watching.

This look at BioElectronics Corporation (BIEL) is a follow-up to our August 12th look, with which we pointed out that BIEL shares were approaching the tip of a wedge and were going to be forced out - one way or another.

Initially (for about a day) BioElectronics hinted at an upside move. The next day, and every day since then, BIEL was sliding lower. The bleeding may have stopped, however, at a major support level. The bar gave us a reversal clue as well.

One of the other ideas we mentioned on the 12th regarding the chart of BioElectronics Corporation was the Fibonacci retracement lines; the one of most interest was the 38.2% retracement at $0.059. Care to guess where BIEL closed yesterday after hitting a low of $0.055? It ended the day at $0.61, and is inching higher today. The Fib retracement may have sufficiently relieved any bearish pressure.

Yesterday's bar from the BioElectronics Corporation chart was also a pretty tall doji, indicating that the bears and bulls reached a volatile equilibrium, and the sellers handed the reigns over to the buyers. This could be an optimal short-term entry point.

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The chart of Las Vegas Sands Corp. (LVS) isn't complicated to interpret - the stock's not only overbought, it's running into a major resistance line, Factor in how the broad market is also starting to deteriorate, and Las Vegas Sands simply looks like a pretty decent shorting candidate.

A trader could make the case for LVS tumbling all the way back down to the support line, currently at $8.50 (but rising daily). That wouldn't be a bad target level in our view either. However, given the volatility of the casino industry's stocks, this trend may be best tapped by taking the chart one day at a time and just being aware when/if  Las Vegas Sands shares make any strong upside reversal efforts.


Finally, it looks as if SpongeTech Delivery Systems, Inc. (SPNG) is making a run... or was anyway. The stock broke past a ceiling at $0.179 with a strong move to $0.194 yesterday.

The problem, however, was a considerable lack of volume; all the SpongeTech Delivery Systems buyers seemed to jump in on the day before (the 25th), meaning the rally from yesterday (the 26th) was running on fumes. In fact, the tank looks empty today for SPNG; the stock's a hair in the red.

Nevertheless, if there's one thing we've learned about SpongeTech Delivery Systems during our three years of covering the stock, it's this.... once the company gets the stock going, it does what it can to keep it going for as long as it can. Case in point - May's runup.

SPNG is nothing you'd want to buy on the way down (like it is right now), since the dips can cut pretty deep as well. It's mostly something you'd want to buy on the way up. So for now, it's best left on watchlists only as a potential breakout candidate now that it's making some noise.

If you'd like to know when or if we issue trading alerts specifically for SPNG, BIEL, LVS, or QSII, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.