Today’s Stock Picks are two Very Speculative Stocks: Kazia Therapeutics and Terrestrial Energy. They are low priced with lots of upside.
1.Kazia Therapeutics (KZIA) $8.33. Guggenheim gave it a Buy Rating on October 21st, with a $35 Price Target, and Leerink Partners gave it an Outperform Rating on October 20 th and a $30 Price Target.
It has a promising drug, Paxalisib, in clinical trials for both colorectal and breast cancer.
If you look at the chart you can see it fell out of a four month consolidation pattern in early September and moved down from about $12 to a little under $7, in about a month and a half. In the Zoom Chart, you can see it had a Bullish MACD Crossover about a week ago and came out of a small 2-week consolidation triangle two days ago, on increased volume.
Per Finviz.com, there are 11.34 Million shares outstanding, and 1.17 Million shares are short, which gives a Short Float of 11.94%, a fairly high number, which should help it move up on any good news. Current Earnings show a loss of -$6.82 per share, and a projected loss of -$1.42
per share next year. Insiders own 14.01%. We like the stock, and expect it to double within 6 months. Biotech Stocks are high risk. If their drug in clinical trials isn’t approved by the FDA, the stock can
plummet, and you can lose all or most of your investment.
2. Terrestrial Energy (IMSR) $3.35. Lake Street gave it a Buy Rating with a $15 Price Target on October 21, and Roth Capital gave it a Buy Rating and $15 Price Target on September 22nd.
The company is a developer of Generation IV Nuclear Plants that use its proprietary Integral Molten Salt Reactor. ISMR plants are designed to be small and modular for industrial applications such as petrochemical
and chemical synthesis and data center applications. The company has large projects in process, but as yet I found no nuclear plants in operation. Mostly they are in the permitting stages-hence the large
risk.
Per Finviz.com, the company has 105.94 Million shares outstanding,
and a Float of 66.23 Million shares. 8.15 Million shares are short, which gives a Short Float of 12.27% – a high number, which makes it a candidate for a Short Squeeze if any reactors get approved. Insiders own 37.48% of the shares, No Insider Selling is shown. Current Earnings are a loss of -$42 per share, and next year’s earnings are estimated at a loss of -$.75 per share.
If you look at the chart, you can see the stock is way down from a year ago, where it traded above $30 a share. Two days ago (on the zoom chart insert) you can see it had a Bullish MACD Crossover, and jumped out of a small 2 week, downward sloping consolidation triangle, on heavy volume. We expect the stock to now begin moving up and probably double within 90 days.
This article should not in any way to be construed as investment advice. For investment advice consult a registered investment advisor or a certified financial planner. Joe Cotton’s website is www.cottonstocks.net.
Joe Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com