Bio Tech long shot
This morning I added a long shot, dark horse candidate Enzo BioChem (ENZO) to the Barchart Van Meerten Speculaive portfolio. The company develops, manufactures and markets health care products based on molecular biology and genetic engineering techniques, and also provides diagnostic services to the medical community. The business activities of the company are performed by one of the company's three wholly-owned subsidiaries--Enzo Diagnostics, Inc., Enzo Therapeutics, Inc., and Enzo Clinical Labs, Inc. The primary focus of the company's research is the development of products based on two technology platforms -- genetic modulation and immune modulation.
I'm calling this a speculative long shot because a lot of analysts including Value Line have beaten this stock up for a long time. I'm only looking at the recent price momentum and one lone analyst's opinion.
Lately the stock has momentum with 16 new highs and price appreciation of 25.60% in the last 20 trading sessions. The stock has a 96% Barchart technical buy signal and a Relative Strength Index of 68.30% that is rising. It recently traded at 5.21 which is well above it's 50 day moving average of 4.47.
The lone analyst made a Strong Buy report based on his thoughts that sales will increase 12.50% this year and 18.20% next year. As with most pharma companies increases in sales usually effect the bottom line very well. He estimates an earnings per share increase of 62.70% this year, 109.10% next year and a 5 year annual EPS growth rate of 14.00%.
Some small investors have noticed these projections and the CAPS members on Motley Fool vote 63 to 9 that the stock will out perform the market with the All Stars in agreement 23 to 1. There have only been 2 articles about the company but both have been positive.
There is a reason the portfolio is called a SPECULATIVE portfolio. I look for momentum not fundamentals so many of the pick are undiscovered long shots and you need to do your own research before you press the buy button.
1 - 96% Barchart technical buy signal
2 - 16 new highs and up 25.60% in the last month
3 - Only 1 lone analysts liking this stock
4 - Some positive investor sentiment
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Managementhas an interest in the stocks mentioned in this blog.