ROSG: Huge Upside Potential?

Company Descripttion
Rosetta Genomics Ltd. (Rosetta) develops and commercializes diagnostic tests based on microRNAs. The Company has a clinical laboratory improvement amendment (CLIA)-certified laboratory in Philadelphia, which enables Rosetta to develop, validate and commercialize its own diagnostic tests applying its microRNA technology. On February 4, 2010, the Company established Rosetta Green Ltd. (Rosetta Green) as a controlled subsidiary. As of December 31, 2010, it owned approximately 76.2% of interests in Rosetta Green. The Company’s wholly owned subsidiary, Rosetta Genomics Inc., serves as its agent for service of process in the United States. In December 2010, Rosetta launched its fourth product miRview mets2. Using Rosetta’s intellectual property, collaborative relationships with commercial enterprises and academic and medical institutions, it has initiated microRNA-based diagnostic programs for various cancers.


Faizan's Take
ROSG last closed at $11.95 a share, its chart has taken up a very interesting form which I have rarely seen in the stock market. Technical analysis shows that the stock is possibly positioning itself for a huge upward move. 
Some points to note are:


1. ROSG successfully broke above the 50 day MA and the 200 day MA on immense upside volume. The fact that this has happened after more than three years of trading makes this breakout potent.
2. RSI line has moved up in the positive region.
3. A golden cross of the moving averages is forming after several years of trading.
4.  The stock has made a huge move recently. In the last two months it has increased in value by about 300%.
5. Finally, the stock has broken above the Ichimoku cloud after several deliberations as shown in the image below.

All these signals combined are signalling that ROSG might be skyrocketing pretty soon. However, I must also note that ROSG is a very high risk stock.


How risky?
Let me clarify that this pick is only for aggressive high risk investors. Therefore if you are looking for a small but guaranteed trickle of upward moves than this is not for you. This stock is the kind that can double in value overnight and can also fall to half of its worth overnight.
Just like any bio med company ROSG's stock is highly sensitive to news about its products and therefore even a small punch can throw its price back to the ground. The probability of such a thing happening might be low however, I will still warn investors to understand this risk before jumping in.


Trade plan
I recommend assigning ROSG a very small portion of your portfolio. Small enough so that even if ROSG takes a downturn it won't hurt your overall performance, but size-able enough so that if it skyrockets you can make decent money.
Selling points for ROSG can vary depending on your preference. Just to point out there are small resistances at $20 and $30 and a major one at $70. For more risk averse people maybe a $20 target will suffice. 


Hope you enjoyed reading. Feel free to leave any questions or comments below the post.

Theragenics Corp. (TGX)

Company Description

Theragenics Corporation is a medical device company serving the surgical products and cancer treatment markets. The Company operates in two segments: the surgical products segment and the brachytherapy seed segment. Its surgical products business manufactures, markets and sells disposable devices primarily utilized in certain surgical procedures. Its brachytherapy seed business manufactures, markets and sells radioactive seeds primarily utilized in the treatment of early stage prostate cancer. The Company designs, manufactures, assembles, packages and distributes its surgical products in three primary production facilities, each of which manufactures different products. The product lines in its surgical products business include Sutures, Needles and Brachytherapy Accessories, Guidewires, Micro-Introducer Kits, Orthopedic Needles, Pain Management Needles and Access Needles. Effective February 17, 2012, the Company purchased Core Oncology's prostate brachytherapy customer base.

Faizan's take

TGX last closed at $2.01 a share. The stock is flashing some very interesting technical signals. All these signals are marked on the chart above. Before I go into the details of these signals let me just briefly mention that technical analysis is handicapped in the sense that it can just provide us with stocks that have a high probability of moving up and cannot categorically guarantee us an upward move. Keeping that in mind this stock is  a classical example of "Stan Weinstein's triple confirmation pattern" which is known to uncover exceptional winners. 

Triple Confirmation Pattern

So  this is how the triple confirmation pattern works:  In addition to the basic requirements of the price being above both the 50 day and 200 day moving averages, three signals have to flash on a chart in close proximity to each other. These three signals are as follows:

1. For the past several months the RSI of the stock should be "hugging" the center line and then on the day the breakout occurs the RSI should move sharply and decisively into positive territory. This can be observed clearly on the chart above where after the initial breakout in late May the RSI sharply moved above the center line and has remained there since.

2.  The volume surge on the day of breakout should be immense and by immense I mean more than ten times the average daily volume of past several months. This can also be clearly observed for TGX. The volume surge on the day of breakout was more than 10 times the average volume of past several months.

3. While in the in the base region before breakout the stock should be making huge swing i.e. the stock should be gaining and dropping 25% to 50% of its value in the base region swings. In this case it can be seen that the minimum TGX reached in the base region was roughly $1.35 in February this year and the max it has hit is around $1.90. Which means that stock has been moving more than 30% of its value in the base region. With that all three requirements of the triple confirmation pattern have been confirmed.

In addition to this pattern being confirmed it can also be observed from the Chaikin money flow indicator that for  the past several months a lot of money has been flowing into the stock which is always a good sign.

So there you have it! TGX is apparently poised for a huge move up. Now is a good time to add positions to this stock. It is likely that the stock will retrace its recent upward move to its last support i.e. $1.95. So if that happens you can use that pullback as an opportunity to add more positions. In case the stock never pulls back you can still ride the upward run on your initial position. 

Also, it is important to remember that the "triple confirmation  pattern" is not for short term investors. Don't buy this stock if you are not willing to hold it for at least a couple of months. 

When to sell?

I try my best to avoid giving recommendations on sell points. However, I will point out that there is a small resistance at $2.30. The stock might stumble at this resistance a bit or it might just shoot past it. Use your own intuition and research to find a good sell point.

When to cut your losses?

There is an old saying in technical analysis "Cut you losers, and let your winners run". As I said before there is always a chance that the stock might not move the way you expect it to move. If that happens I would recommend selling all your positions when the stock goes below $1.85 a share. Never ever stick with your losers. Nobody makes money on every single stock they buy, you have to have a system that can make money in the long run. 

Conclusion

With all that being said I believe that it is highly likely that TGX will go for a good bull run. Hope you guys enjoyed reading. Please feel free to leave comments or questions below this post.

Fluor Corporation (FLR)

Company Description
Fluor Corporation (Fluor) is a holding company. It is a professional services company providing engineering, procurement, construction and maintenance, as well as project management services on a global basis. Fluor serves a diverse set of industries worldwide, including oil and gas, chemicals and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the United Services federal government. Fluor operates in five principal segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services and Power. Fluor Constructors International, Inc., which is organized and operates separately from the rest of its business, provides management and construction services in the United States and Canada, both independently and as a subcontractor on projects in each of its segments. In November 2011, it acquired a sulfur technology company, Goar, Allison & Associates, a unit of Air Products.


Faizan's take
For a hold period of around 6 months I anticipate the price reaching $74.00 a share which should give a decent 21% gain.