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MicroMarvel is a series of articles highlighting undercovered stock 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 MicroMarvel is the undiscovered biotechnology company Mereo BioPharma (MREO). I found the stock by using Barchart's powerful 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 12/1 the stock gained 32.88%.

(Click on image to enlarge)

MREO Price vs Daily Moving Averages (Barchart)

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom and internationally. Its lead product candidate, etigilimab (OMP-313M32), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors. The company is also developing Navicixizumab (OMP-305B83), which has completed Phase 1b clinical trials for the treatment of the late line ovarian cancer; Acumapimod (BCT-197), a p38 MAP kinase inhibitor that is in Phase II clinical trials to treat acute exacerbations of chronic obstructive pulmonary disease; and Leflutrozole (BGS-649), an oral aromatase inhibitor for the treatment of hypogonadotropic hypogonadism which is in Phase 2 trials. In addition, it develops rare disease product candidates, including Setrusumab (BPS-804), a novel antibody for the treatment of osteogenesis imperfecta; and Alvelestat (MPH-966), an oral small molecule that is in Phase II clinical trial to treat Alpha-1 anti-trypsin deficiency. The company has a collaboration with The University of Texas MD Anderson Cancer Center to evaluate anti-TIGIT therapeutic antibody candidate, etigilimab; and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize setrusumab. Mereo BioPharma Group plc was incorporated in 2015 and is headquartered in London, the United Kingdom. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 141.60+ Weighted Alpha
• 232.66% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50, and 100-day moving averages
• 13 new highs and up 46.04% in the last month
• Relative Strength Index 78.80%
• Technical support level at $2.84
• Recently traded at $2.95 with a 50-day moving average of $2.19

Fundamental Factors:

• Market Cap $369 million
• Wall Street is following this stock but has not given Revenue and Earnings projections

Analysts and Investor Sentiment -- I don't buy stocks 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:

• Analysts have 2 strong buy and a buy recommendations in place
• Analysts price targets are between $4 and $5 - with a consensus of $4.35 - a 45.73% gain from today's price

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