Why MEI Pharma Is Likely To Rally Over $3 In The Next Month Or So
TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
In this video, I explain why I like the MEIP chart and why I think it will rally over $3 in the next 3 to 4 weeks or so. The basic thesis here is that warrant holders are shorting the stock to a certain point where there is enough short interest to sling-shot the stock over where the warrants are priced at, roughly about $3.25. I gave a similar thesis with Synergy Pharma (SGYP) when that stock was $2.75, predicting a move over $4,50, in which that stock hit a high of $4.68 before retracing to the mid $3 level where it currently trades at. In this video, I give a detailed explanation for my thesis, enjoy!
Video Length: 00:08:29
Disclosure: Long MEIP.
Disclaimer: This article/video is intended for informational and entertainment use only, and should not be construed as professional ...
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YES, beware of small capitalized stocks! If you like to play risky stocks then be ready to dump them any time even with no gain (or loss).
Djoni S Sidik, Indonesia
Where do the short sellers stand right now? Are warrants still available? I guess my question is, if this is a longer-term view, what is the immediate-term view in your opinion?
Pretty much what's in the video Wendell -- To the best of my knowledge, there are no open warrants for sale. I do know there are over 3 million warrants, most of them un-exercised at $3.12. Seeing the daily finra report, there are constant market maker exemptions, so those are "naked shorts" which there is no question in my mind are shorts against shares that do not exist now (un exercised warrants), but will exist at some point. So, I still believe they will sling shot this one to over $3.25 to make money both ways.
I agree that this stock should be back over $3 based on the Financials of the company alone. Add to that, that they still have solid products and really the phase II drug is still a solid drug (not the glory results everyone wanted to hear), and their second drug is showing solid results. So I cant figure out why this stock is still so low.
I will say that this stock doesn't follow chart reading pickers as well though, because their basing it off the old highs/normals not after the drop and I believe that causes false indicators so you can't really do that with this stock. But I agree to the extent that it will go above $3 pps soon, of af course imho.
Great video, hit all the topics and chart analysis is on point.