US Charting Stocks: $NSTG $SAIL $UNM

Nanostring Technologies:

As we celebrate record intraday highs for the US stock market, it is interesting to look at a trio of US stocks that have so far made somewhat hard work of the greatest bull market in history.  In the case of the Nanostring chart there are three things to focus on. The first is the strange “pile driver” day in March where the stock fell and then immediately bounced back.

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This is a sign that somewhere behind the scenes there is a very keen buyer. Indeed, the latest price action in the form of a rebound off the floor of a rising trend channel from September and the recovery of the 50 day moving average at $24.94 implies that the rally here is back on track and could hit the top of the rising trend channel at $35 over the next couple of months. The stop loss is the aforementioned March day support at $22,00. It would be very surprising if this was broken.

Sailpoint Technologies: 

For Sailpoint it would appear that the recent pullback is also at an end, and that there could be an extended rebound off the $27 February 2018 uptrend line.

SAIL

Indeed, an end of day close back above the 200 day moving average at $27.78 may be decent confirmation of a return to bullish form, with a clearance of the 50 day moving average at $29.19 the trigger for cautious traders. Ideally, we have been in a converging triangle and this will break to the upside via $31 before the end of next month.

Unum Group: 

With Unum we get the feel of an oil tanker trying to turn around to the bull side, but with two failures over the past couple of months to clear the 200 day moving average at $35.70. The hope now would be that it is third time lucky, especially given the M&A buzz doing the rounds regarding the company last week.

unm

Nevertheless, unless there is a dramatic fundamental development the easiest way forward here may be to wait on a break of the main $38 resistance, or even a higher low above this mark. That said, where is the fun in being that cautious?

Disclaimer

Zakmir.com is a purely journalistic, not for profit website. Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Arkema (AKE:EPA): 200 Day Line Break Targets €100 Plus

akelogo

There has been a solid looking recovery for Arkema since the beginning of January, with a V shaped recovery, helped along by an as yet unfilled gap through the 50 day moving average.

AKE

Now with the stock clear of the 200 day line at €92.74 one would expect a further squeeze higher as bears are caught on the wrong foot. The notional target here could and should be as high as the top of a rising trend channel with its resistance line heading above €100. Only well back below €90 really upsets the idea of further progress to the upside.

Intercept Pharma (ICPT): Could it be intercepted?

One of the few things we know about 2019, and what was known at the start of January, is that 2019 could be the year when consolidation in the pharma sector really kicks in.

This is because the large players are being squeezed by regulation, and generic competition, and will have to look to the smaller, niche players in order to maintain their position.

This means that the likes of Intercept Pharma could be in focus for consolidation by the likes of Novartis or Astrazeneca, and given the rocky ride for the stock since the summer it would be likely that few would be able to argue this is not a good idea.

icpt

With the stock back at major support in the $85 zone, this could be a range play anyway, even without any M&A materialising.

Disclaimer
Zakmir.com is a purely journalistic website and not for profit – unlike the mainstream media. Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

 

The Link Between Perrigo And Akorn

It was announced on April 4 via Bloomberg and beyond that Apollo / CVC were looking to buy the prescription drugs business of Perrigo. All of this may be helpful to Akorn which previously escaped the clutches of Fresenius, and then saw its CEO retire and be replaced by Douglas Boothe.

akrx

He was previously the Executive Vice President and General Manager of Perrigo. What could be salvation for Akorn is if Perrigo with a war chest of $2.5bn from a sale of its prescription drugs business, is that it would then have plenty of cash to spare, could make a play for the generics drugs business of Akorn. Clearly, the links between the two companies are helpful. Indeed, Perrigo has the cash to decide between buying part or all of Akorn in order to acquire the target business it wants. Either way, given the debt Akorn is burdened with, and how its market cap is being held down in the interim, either a part or  whole purchase of Akorn would be attractive.

Give the poor performance of Akorn shares, anything which ends the recent drift has to be regarded as positive. Indeed, the generic drugs part of Akorn could fetch more than the present market cap of less than $500m.

Disclaimer
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Not So Hostile for Hammerson (HMSO)

Hostile bid rumours surrounding Hammerson are one thing, the shares being bombed out near the lows of the year may be more meritworthy.

Interestingly enough, there has been a spurt for the stock this morning. Technically, we are bouncing off the floor of a bullish falling wedge pattern, with the prospect of a break of the 50 day moving average at 364p and the top of the wedge leading to 400p plus. Clearly, new lows for the year under 320p would not fit the scenario.

hmso

Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Anadarko / Chevron:

It would appear that very often the most obvious bidder can be hidden in plain sight, and this has certainly been the case ee Anadarko / Chevron.

apcimage

But at least the rumour mill was spotting smoke leading to fire. What was interesting is that on March 26 shares of Anadarko gapped higher (6 days after the article here on Zakmir.com) at the bottom of the range, and surged again last Friday. The offer of $65bn seems full and fair…