MicroMarvel - Atossa Therapeutics

What we call "Micro Marvels" are undercovered stocks with less than a billion dollars in Market Capitalization. These articles are not intended to be buy recommendations. They highlight stocks that may have limited trading volume and may be highly volatile, so if you do decide to add them to your portfolio I highly recommend you use stop losses and limit orders.

Today's Micro Marvel is the biopharmaceutical company Atossa Therapeutics (ATOS). I found the stock by using Barchart's screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and having a Trend Seeker buy signal, then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 2/6, the stock gained 108.94%.

ATOS

ATOS Price vs Daily Moving Averages (Barchart)

Atossa Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing medicines in the areas of unmet medical need in oncology. The company's lead program is Endoxifen, an active metabolite of tamoxifen, which is in Phase II clinical trials to treat and prevent breast cancer. It is also developing AT-H201 for lung injury caused by cancer treatment. In addition, the company develops immunotherapy/chimeric antigen receptor therapy programs. It has a research agreement with Dana-Farber Cancer Institute, Inc. to support research of cytokine-coated nanoparticles for the treatment of breast cancer. The company was formerly known as Atossa Genetics Inc. and changed its name to Atossa Therapeutics, Inc. in January 2020. Atossa Therapeutics, Inc. was founded in 2008 and is headquartered in Seattle, Washington. 

 

Barchart Technical Indicators:

  • 100% technical buy signals
  • 149.21+ Weighted Alpha
  • 161.83% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50, and 100-day moving averages
  • 12 new highs and up 83.33% in the last month
  • Relative Strength Index 62.23%
  • Technical support level at $1.5433
  • Recently traded at $1.87 with a 50-day moving average of $1.2216

 

Fundamental Factors:

  • Market Cap $234 million
  • Wall Street analysts project earnings will increase 25.00% this year, decrease 12.50% next year and decrease at a annual compounded rate of 11.10% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks just because everyone else is buying, but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • In spite of those projections Wall Street analysts have 4 buy recommendations in place
  • They have price targets between $4 and $5.75 with a mid-point of $4.58 for a 145% gain
  • Value Line give the stock its average rating of 3
  • CFRAs MarketScope has a hold rating

Authors Note:  Although the stock has a decent size following, Value Line points out that this stock has highly unreliable projections for Revenue and Earnings.  I also see that the stock has had a recent pullback on very increased volume.  Very highly speculative!


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Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

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