Small Cap Network's  Instablog

The following three companies, Seacoast Banking Corporation of Florida (NASDAQ: SBCF), SuperGen Inc (NASDAQ: SUPG), and Tengion Inc (NASDAQ: TNGN) have all posted gains in the last few sessions and appear ready to retake lost territory…

… just a reminder; a little profit taking during a bounce back is normal…

Seacoast Banking Corporation of Florida started July climbing up from $1.50, past $1.65, testing $1.75, and then plummeting back to $1.50, before moving up again to its current $1.62 price. Quite the ride for Shareholders in the last five weeks. 

A pretty good, but not stellar Q2 was the catalyst for all the motion. Well that’s all over now and the stock is on the move: Up. Considering its strength in testing $1.75, I think the rally is on and the shares, absent of any earth-shattering news, will retest that higher price and take, and hold it in the immediate term (6 weeks). Not many short sellers here to prevent some gains.

At Tengion Inc, the regenerative organ and tissue concern, any move up to constitute is going to be in small, incremental steps, but that doesn’t negate a rally, only makes it much more subtle in form over time. The stock was trading in the $1 range both athe beginning of June and the beginning of July, its obvious ‘bottom’ and slowly, but steadily moved up in July to its current $1.34 range, a gain of 34% in four weeks.

I think the rally is on at Tengion Inc. This was a $2.75 stock in May; it has a number to return too… Sr. Management changes in June and virtually no short sellers can sustain a rally and in the near term (3 mos) turn it into a surge.

The story at SuperGen Inc is completely different… the pharmaceutical concern, with a long list of drug candidates in the pipeline, has topped a plateau as I see it and question is: can it hold its ground. The stock was trading in the $2.80 range in late June, and in some very choppy trading fraught with little dips and spikes, the stock has managed its way to its current $3.08 price, a gain of 10% in five weeks.

With only the normal numbers of short sellers to apply any downward pressure and positive sales and EPS projections quarter over quarter; I think the rally is on here though it may be ‘two wins here and one loss there’ in weekly trading sessions.

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