Neither Acorn Energy Inc. (NASDAQ:ACFN) nor Cardica, Inc. (NASDAQ:CRDC) may look all that compelling with just a passing glance. The longer one examines CRDC and ACFN, however - and really gets a grasp of their underlying stories - the more compelling each one becomes. In fact, newcomers may want to go ahead and put both budding stocks on their watchlists, if not in their portfolios.
CRCD is a medical device maker. Specifically, Cardica, Inc. makes anastomotic systems for cardiac surgeries. And, last quarter's results rolled in far better than anticipated, kick-starting a rally from the stock that may have changed things on a permanent basis. In fact, it's this new paradigm for the stock that makes a trade so juicy right now.
As the nearby chart illustrates, the inevitable pushback from the rally in June was stopped rather abruptly, with CRDC only needing to brush the 200-day moving average line (green) to inspire another round of buying. It's the first time in years we've seen Cardica actually find support rather than resistance at a key ling in the sand. It's also the first time in years we've seen any real hints that the bulls are ready to hold their ground.
As for Acorn Energy, it's anything but a household name. ACFN is a $60 million maker of high-end sensors used in a variety of ways.... energy infrastructure, cell phone towers, and even defense technology. Business has been pretty good too, with four straight years of sales growth, even if losses have widened along the way.
That's not the reason a newcomer would want to own a stake in Acorn Energy Inc. right now, however. The most attractive part of ACFN here is the way shares have fought their way above a near-term ceiling at $2.66 after we saw a key reversal effort - on high volume - take shape in early June. The 100-day moving average line (gray) seems to be a point of contention, but the bulls are thus far winning the war.
While both Acorn Energy and Cardica may not necessarily be back in long-term uptrends because of recently-developed clues, the short-term upside here is potentially juicy, and worth a shot.
For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.
No comments:
Post a Comment