Forget the naysayers; forget hunting season, all the bears just got slaughtered. With every single major index like the NASDAQ, S&P 500, and the Dow Jones trading at all time highs, it’s clear that 2017 is setting up to be a once in a lifetime bull market.
More Cash is Entering Equities Than Ever Before
As indexes continue to climb higher and higher, investors have increasingly reduced their cash positions, in favor of equities for their portfolios. With cash, previously parked on the sidelines, now pouring into the stock market, 2017 has proven to be a particularly rewarding year for companies reporting record revenues and profits.
Spotting A Breakout Stock
In a bull market like none other, both large and small companies are now primed to appreciate substantially the moment positive developments become public knowledge. Large trades following positive news often lead to a Breakout. As soon as a stock gains momentum with higher share price and volume, these stocks tend to trade significantly higher as resistance points are broken faster than they are created.
Not only are more companies breaking out each week, but also these companies are continuing to trade higher even after breaking out. After share prices are able to break through and hold above key resistance levels, they have generally continued to trade higher over the following week in 2017.
With that in mind, here are four companies breaking out right now on major news.
NewLink Genetic Corporation (NLNK)
Shares of NewLink Genetic Corporation are starting to break out again. After the early stage biotechnology company reported its financial results for the fourth quarter and year ended 2016 and progress on its clinical development pipeline, share price grew over 40% with 3.5 million shares traded in volume over the following five days.
2017 is proving to be a pivotal year for the company, having nearly doubled year to date. Due to the promising data being reported regarding Newlink’s lead therapeutic, indoximod, the breakout may continue as management recently announced its presentation of two abstracts at the American Association for Cancer Research (AACR) early next month.
Immydyne (IMMD)
Immudyne broke out massively on Friday, appreciating over 34% on over a million shares or 50x average volume, establishing an all time high of 43 cents a share. The company’s market capitalization has increased 64% year to date on the back of strong fundamental growth.
Introduction of premium health products have served to invigorate the development of the company, with a 70% gain on its top-line in 2015, and reporting four times 2015 revenues in 2016. Immudyne’s patented products, that are endorsed by leading dermatologists, drove gross sales to over $4 million in the last fiscal year.
Immudyne closed Friday at its all time high; this signals that the breakout is just beginning. As more momentum and value driven investors begin to take notice of the company and its compounding double to triple digit sales growth, the company appears poised to establish new highs.
Calithera Biosciences, Inc. (CALA)
Calithera Biosciences just isn’t letting up. Since 2017, the market cap has more than tripled from $67 million to $257 million as of the last close. Despite this incredible run, shares broke out again right before the company announced its participation at Cowen and Company’s 37th Annual Healthcare Conference for the year of 2017.
Shares have rallied over 35% from $8.90/share to over $12/share on nearly triple the average volume since February 28th. Although the specific catalyst remains unclear, investor appetite for the clinical-stage pharmaceutical company has grown considerably from the validation received from partnerships with Bristol-Myers and Incyte.
The last breakout for Calithera came from its announcement of a global collaboration and license agreement with Incyte, where they received $45 million in cash up front with $8 million equity investment. Shares traded well in advance of this announcement, nearly doubling from $4.60 to over $9.00 following the formal press release.
Navigator Holdings Ltd. (NVGS)
This transportation company for the oil and gas industry defied estimates on its fourth quarter earnings. Navigator smashed analysts’ estimates by posting $75.5 million in Q4 revenue, of which $7.6 million was profit. With the average consensus expecting just under $60 million, the strong beat resulted in a breakout.
After the earnings report, shares broke out at $12/share the following day, before closing the day above $14/share. Although shares are trading 30% higher, share price still remains below its 2016 high of $17.17.
About One Equity Stocks
One Equity Stocks is a leading provider of research on publicly traded emerging growth companies. Our team is comprised of sophisticated financial professionals that strive to find the companies and management teams that will outperform the market and deliver investment returns to our subscribers. We are not a licensed broker dealer and do not publish investment advice and remind readers that investing involves considerable risk. One Equity Stocks encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. One Equity Stocks is a for profit business and is usually compensated for coverage of issuers. In the case of Immudyne, we have been compensated 250,000 shares of common stock in for advisory, marketing and business development services. The owner of One Equity stocks is long IMMD.