PROFILE SNAPSHOT:
Acorda Therapeutics, Inc.(ACOR), a biotechnology company, develops therapies for multiple sclerosis, spinal cord injury, and other nervous system disorders. The company’s pipeline also includes various products in development for the treatment, regeneration, and repair of the spinal cord and brain. Acorda Therapeutics sells its products through specialty sales force, managed care team, and contract pharmaceutical telesales organizations. The company was founded in 1995 and is based in Hawthorne, New York.
FUNDAMENTAL DATA:
On the fundamental side, a Couple “Buy” data points stand out with ACOR:
- Qtrly Revenue Growth (yoy): 318.20%
- Balance Sheet: Cash: 245.82M, Debt 7.28 M
- Low Beta: 0.26 (Safer to hold longer term)
COMPANY INVEST TECHNICAL ANALYSIS TAKE:
Fundamentals are great, but it’s the technical analysis indicators that really matter to us at Company Invest. And my the charts are screaming that ACOR is a buy right now!
“A” is the 20 period Relative Strength Index (RSI). The 20 day RSI is good for measuring the strength of stocks we want to hold for longer periods (weeks to several months). The 20 RSI just crossed the magical 50 level, which is extremely bullish. It also fills the criteria for Dr. Schapp’s 50/50 trading strategy because the stock price just crossed above it’s 50 day moving average.
“B” is the ACOR candlestick price chart. Not only did the stock break through it’s 50 day moving average, it also broke out of a classic “Stage 1″ base and could be set for a stage 2 bullish run. Stocks move in 4 stages, with stage 2 being the most dramatic upward moves.
“C” is the MACD indicator which just got a bullish cross and also had a bullish divergence with the price channel.
Finally, “D” is the slow stocastic momentum indicator. Readings below 20 are considered oversold, while readings above 80 are considered overbought. Readings above 30 are generally thought of as a safe trade entry, so at a reading of 46, ACOR is right in a momentum sweet spot.
Bottom Line: Grab ACOR for a position trade (possible investment) with a stop below $25.
