Rainbow Coral Corp (OTCPK:RBCC) jumped up from $0.12 on 6th May to $0.50 at the market close today. Having followed the stock for a few weeks on my watchlist, it seems that its finally moving in the right direction. RBCC has a subsidiary, Rainbow Biosciences, which is a biotech company that specializes in personalized medicine. Having received a huge influx of cash from their joint venture agreement with TheraKine Ltd., RBCC looks set to be on the move and their recent volatility is proving them to be really attractive.
The problem with Biotech stocks remain that they are still pretty much in their embryonic stage and there is absolutely no guarantee as to when they will start generating a return. In the case of RBCC, there is plenty of positive sentiment pushing the stock as they look to tap into the lucrative personalized medicine market. Apart from that, the genetic testing sector is also continuously growing and RBCC seems to be getting close to another potential deal with Leading Edge Pharmacogenics Lab for developing better more effective, optimized drug treatment plans.
The average volume for RBCC is also spiking up signaling a positive trend and I'd have a price target of $2.00 on the stock for the year to come.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: www.rainbowbiosciences.com/