SPNG and JAZZ
SPNG - I wrote an article on SPNG when it was at 2.1 cents. You can read it here. I thought they were going up, but didn’t have any idea that it could be so “up”. I had 100K shares and made a very tidy profit….I wished that I had stayed in. But, I took my profit and I am thankful for that.
The question is , “Do I get back in”. I am watching SPNG run again today. I tried to buy at .181, but didn’t get filled. It has already run to .19. Here is what we know:
- SPNG has made a feast of good news for its investors. They appear to really have made a huge advance in exposure leading to sales. The latest jump can be tied to their annnouncement that they are being sold in Costco. What will be telling with that relationship will be if they re-order. I have had dealings with Costco and they will make or break companies. If the product doesn’t sell, Costco will ship all the product back and SPNG will refund Costco’s money.
- SPNG is driving eyeballs to their product. Successful cross promotions with MLB and Sponge Bob is increasing the profile of SPNG exponentially. They are being sold on television, even. On our board, our members have mentioned seeing ads for SPNG everywhere.
- They are making money….well, at least they are driving top-line revenue. With the increased ad spending and other costs, I will be curious to see what.
- Becoming a NASDAQ company. Hanging over this whole stock equation is the stated desire of management to become a reporting company. It will require a reverse split of some huge number due to their bloated capital structure, but will be a good thing in the long run.
Conclusion: the stock has already popped the magic .20 range and it is marching on. Remember that it is in uncharted territory and could fall off fast. It is so far above the 50 and 200 MA that they almost have no relevance to the stock or its direction. Watch the chart and keep a tight stop.
JAZZ
JAZZ, in my opinion, is a creature of good news. It has shot up an amazing 300% since Wednesday gapping up sharply in early trading on that day and continuing a multi-day run. Any pharma company that releases news has the potential to shoot up like JAZZ did.
To look at the chart, you can see that both the MACD and stochastics are still bullish, but the question is “how much farther can it run). Their financials are terrible – huge losses (although narrowing somewhat) and some very real liquidity concerns. The shares opened up sharply today, but have given back some of that gain. It doesn’t appear that heavy profit-taking is going on, but be careful.
Conclusion: Watch for a short opportunity on this one. I don’t think the run will continue and JAZZ will be pushed back to the $1 mark within the next few weeks.
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