NRT is on a breakout. One reason could be the buy rec from roman Franco (Thanks for the post Y Nado). I have found the recomendation and it is as follows.
Roman Franco, Investors Digest - September 12, 1997
Continuing the theme from the past few issues, I'll update some more of my previous selections here.
As I cannot possibly summarize all the relevant changes that have occurred at these companies, I will highlight only a few major points, and look at the technicals, or the judgements that the market as a whole is passing on these companies. Of course, the companies are willing to provide more detailed information.
First the biotech companies. Nortran Pharmaceuticals (NRT-VSE, $1.50, phone 800-330-9928) was presented in the April 25, 1997 edition. It had just broken out of a multi-year base and hit a high of $1.80 before settling back to the $1.25 range. I told readers to wait for the price to drop, and indeed the price settled back to below $1, offering extensive buying opportunities, before it firmed up and traded up to its current $1.50 range.
Nortran continues to develop its antiarrhythmic and pain blocking drugs. On May 27, 1997, it announced that its lead candidate local anaesthetic and antiarrhythmic drug was shown to be well tolerated in Phase I safety trials.
As of July of this year, it had about $5 million in working capital, which, at its current burn rate, will last more than two years. Within six months, the company anticipates having two drugs in Phase II trials, and could sign a joint venture agreement or two with large pharmaceutical companies in the interim.
Nortran may hit $4
Although there is no way of knowing for certain at this time, the March breakout and subsequent selloff look very much like the first two waves of a common five-wave pattern. If this is the case, the recent recovery is only the first part of wave three.
As wave three is usually the most dynamic, the share price could hit $4 or more before wave four profit-taking sets in. Such a run up is also consistent with the five year base Nortran has built as the longer the base, the higher the run. Buy.
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