Weekly recap. Two stocks that could run? $BPTH $CIFS $MTP
Let’s talk about 3 stocks that were one of the most active stock this week among other nanocap stocks. Two of them could see some more upside the next week. Let’s start with them.
$BPTH: has an extremely low float (total amount of shares of the stock that can be traded on the market) of 650k shares. The float, for those who do not know, is the actual share supply for that company. And on Friday stock traded 58 million shares making an extremely low supply of shares to be traded by huge demand of 58 million shares. Two extremes on both ends will have a big effect on price because of this huge imbalance between supply and demand. This type of event always induces huge price runs. $BPTH was no exception. The stock closed strong and most probably will have one or a few days more to pop before bursting and starting to fade. So short term price increase possible. But do not expect too much of it after.
$CIFS is China company’s stock. As well with a small float of 5.77 million shares. But there is more to this stock than low float and huge volume. Company’s fundamentals on year to year basis looking good. Income is growing strong, net tangible assets are growing, cash flow looks strong. The fundamentals are really decent and that is what is showing on the $CIFS stock price action. Stock as well closed strong but the after-hours brought even more attention while stock gained +13% during that time. So at the end of the Friday stock closed higher by breaking week’s high set on Monday. It seems this stock is set up for momentum and longer-term upside.
$MTP jumped big this week as well but it is important to understand when the momentum disappears from the stock. $MTP look very similar to past runner $SOLO or $BPTH. These stocks tend to pop fast and have a shorter window of opportunities. So you need to be quick when trading these type of stocks. When talking about $MTP I do believe so that the window is closed and maybe if you are OK with leftovers or like to short sell these stocks you can pick it up but for me it is out from my watchlist while I am more interested in the possible short $BPTH run before its window closes as well.
Hope you like this recap and good luck trading next week!