MicroMarvet - Fulcrum Therapeutics - Confusing Projections And Recommendation

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. 
 

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Today's MicroMarvel is the biotechnology company Fulcrum Therapeutics (FULC). 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 11 /20 the stock gained 68.82%.

FULC

FULC Price vs Daily Moving Averages (Barchart)

Fulcrum Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing products for improving the lives of patients with genetically defined diseases in areas of high unmet medical need in the United States. Its product candidates are losmapimod, a small molecule for the treatment of facioscapulohumeral muscular dystrophy is under phase III clinical trial; and FTX-6058, an investigational oral fetal hemoglobin inducer for the treatment of sickle cell disease and other hemoglobinopathies, including beta-thalassemia is under phase I clinical trial. The company is also discovering drug targets for the treatments of rare neuromuscular, muscular, central nervous system, and hematologic disorders, as well as cardiomyopathies and pulmonary diseases. Fulcrum Therapeutics, Inc. has a collaboration and license agreement with Acceleron Pharma Inc. to identify biological targets to modulate specific pathways associated with a targeted indication within the pulmonary disease space; and MyoKardia, Inc. to discover, develop, and commercialize novel targeted therapies for the treatment of genetic cardiomyopathies. Fulcrum Therapeutics, Inc. was Incorporated in 2015 and is headquartered in Cambridge, Massachusetts. 

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
  • 36.00+ Weighted Alpha
  • 15.77% loss in the last year
  • Trend Seeker buy signal
  • Above its 20, 50, and 100-day moving averages
  • 15 new highs and up 58.59% in the last month
  • Relative Strength Index 79.37%
  • Technical support level at $7.16
  • Recently traded at $7.85 with a 50-day moving average of $4.96
     

Fundamental Factors:

  • Market Cap 466 million
  • Revenue is estimated to be down 63.40% this year and down another 19.80% next year
  • Earnings are projected to increase 32.80% this year but be down 9.80% next year then continue to increase at a compounded annual rate of 6.40% for the next 5 years

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:

  • Wall Street analysts have 3 strong buy, 2 buy, 1 hold and 1 underperform recommendation in place on the stock
  • Analysts price targets are between $4.50 and $16.00 with a consensus of $10.21 for another 30% increase
  • CFRAs MarketScope rate the stock a hold
  • 1,520 investors are following the stock on Seeking Alpha

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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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