To: wlheatmoon who wrote (341 ) 2/19/2000 8:10:00 AM From: John Pitera Read Replies (1) | Respond to
Excellent Post MC! -- 5 MicroCap Biotechs on the Move .investors should see more action this year. The Machinery Medical Equipment {.MLR} group showed heightened volume and the .MLR weighted index gained 10 percent. The Drugs Research {.DRE} group moved notably higher on healthy volume also. Leaders among these two groups were: ERGO is a developer of treatments for cancer, and for metabolic disorders such as obesity and diabetes. The company saw heightened investor interest around an announcement regarding the settlement of a litigious suit. Citicorp Venture Capital Ltd. and Johnson & Johnson each own a 12 percent stake in the company. ERGO is a stock to watch following last week's strong showing of upside volume. The last two days of trading marked the stock's heaviest upside volume since 1997; this action could herald the beginning of a recovery for ALCD. The company announced earlier last week approval by the Department of Agriculture of an antimicrobial compound for use in meat processing that will be marketable to the red meat slaughter and processing markets. ALCD is a microcap issue, with a market capitalization of approximately $50 million and 2.5 million shares outstanding. heaviest inflow of investor capital and commensurate upside volume to date last week. The stock reached all-time high territory Thursday and is forming new support above $4. CYTR shows a market capitalization of approximately $25 million with 7.7 million shares outstanding. for the treatment of infective, oncological, pulmonary and allergic disorders. MGN is another microcap stock that more than doubled last week on huge relative volume. The stock finished the week strongly with its heaviest upside volume of the last five years to close above longstanding resistance at $8. This substantial move higher makes MGN a stock to watch for continued gains. is firmly in new high territory above $12. Trega has seen elevated volume and gains since late December, and last week's breakout should herald a new period of consolidation for TRGA. This is another small cap issue to monitor for continued growth. TRGA announced a deal with Discovery Technologies Inc., whereby TRGA will provide Discovery with proprietary chemical compound resources. The surge in buying of small and microcap issues in these two groups and other high-tech medical and biological companies last week marks a developing trend in the markets. The volume and capital inflows into these companies is indicative of institutional interest, which makes these groups worthy of further investigation by investors. As technology stocks approach valuations previously unimaginable and buyers continue to bid stocks in groups such as semiconductors, optics, and the internet arena higher and higher, big institutions have turned their eyes and money to other industries. Monitor the small cap issues in these two groups for continued gains in the coming weeks as the markets falter on questions of valuation, interest rates, inflation and a precariously inverted treasury yield curve.
