August 15, 2013
Sleepy Plandaí Stock Matches 52-Week High
As we near the end of the dog days of August, the relatively sleepy and under-followed Plandaí Biotechnology, Inc. (OTCQB – PLPL - $0.61 – Spec Buy) has matched its 52-week high this week and appears primed to move substantially higher. On August 13th, just 2 days ago, Plandaí one again reached the $0.62 mark, matching its year-high for the second time in the past few months. The move occurred on nearly four times average daily volume which is a very bullish sign for prospective shareholders and current investors.
BarChart.com rates the stock a Buy based on a series of technical analysis characteristics that even the layman will understand to be great positioning, especially considering the recent and steady declines in the stock market in recent days. At current levels, the stock’s daily moving averages (DMA) are quite impressive. For example, the shares are now trading 22% over its 20-day moving average and nearly 300% over its 200-day moving average. The 5-day DMA returns are even more bullish, as Plandaí’s shares now trade 11% higher on nearly twice the average daily volume. Moreover, with relative strength at new highs and DMA volatility at new lows across the board, the stock appears ready to set a new, higher base, led by new shareholders that have purchased shares at these higher prices.
Of course the return to its 52-week high is not driven by technical analysis alone. Company fundamentals, led by a series of pending milestones illustrate that the Company is in its best position in quite some time, thus providing great comfort to shareholders at current levels. For example, Company plans to commence human bioavailability studies to test oral absorption and further human studies to test the efficacy of the product in inducing weight loss. The Company is also poised to begin its first round of in vivo anti-malaria studies, in animals, as a follow up to previously released favorable in vitro studies. Given the type of tests ad studies, early 2014 should see a flurry of trial and test results, which we believe will be overwhelmingly favorable.
Plus, with the start of major commercial production and sales of its flagship product, the total formulated Phytofare™ catechin complex, slated to occur sometime in early-1Q14, this sleepy stock will be generating meaningful revenue as well. All of these events serve to lower the risk profile, add to the already attractive valuation, and serve as a catalyst to drive the PLPL shares to new highs.
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Senior Analyst: Robert Goldman
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