One small stop on the chart…one giant leap for Mannkind (MNKD) (May 29, 2014)
I want to look at Mannkind ( NASDAQ:MNKD ) today. I’ve been talking about this stock for a while now; it’s been in a volatility squeeze and it’s started to breakout to the upside. I don’t think it’s too late to buy this stock. You look back here, the stock last peaked here at 8.70, and then here, it didn’t get up that high to 8.08, now it’s close to this 8.70 level, which would be a new multi year high. When a stock has this strong of an upside momentum I think it pays to trade along with it. They’re probably in a bit of a short squeeze now, there’s almost 30 percent of the float is short, which as short squeezes go isn’t that high of a percentage, but people are getting crushed with this stock. There’s a lot of negative sentiment out there because of all the uncertainty around their AFREZZA inhalant insulin delivery system, and of course everybody’s bashing it for various reasons.
I don’t have diabetes so it doesn’t impact me one way or another, and I have no dog in this fight as far if it’s a risky delivery system or not; I hope it works because I think that’s good medicine, to be able to inhale something as opposed to getting a shot. I think this stock is going to continue to work and as long as it keeps trickling higher I’m in, I’m going to stay in. I’m not a big biotech guy, but I love these patterns; I guess it got an FDA committee recommendation, or something like that, so I guess in the middle of June this is up for full-on approval, I think that’s why this stock is trending higher. I’m sure there are other reasons that people are going to give me, but the bottom line is, this has been one big consolidation bowl.
In my view I will look to perhaps start selling all the calls that I own when the stock hits $10.00, that’s almost 20 percent from where it is now; but I think this stock continues to move. So hopefully you’re along for the ride, just make sure you keep position stops on this; if the stock starts trading lower don’t sit here and white knuckle it because Dan says he thinks the stock’s moving higher, I say I think, I don’t know.
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