As I said numerous times in my tweets over the past month, the biotech index is severely oversold. Down and low is when we start looking at stocks to bottom pick. One particular name that came up on our radar recently was $LCI (Lannett stock). Trading at only 1.5 x 2016 revenue and 4x EBIDTA with little debt, Lannett is dirt cheap. Short interest on the name is a whopping 31% of shares outstanding so any upturn in momentum on the daily stock charts will force a stampede to cover shares.
We loaded up a lot yesterday (on top of our core position we had been trading in and out of) on weakness and sold it all today on the nice +10% pop. Realistically we wanted to ride it to $30, but cashed out quickly as we were content with our gains.
Net profit: $10,993 in a week's time! Learn how to make money consistently with us in the MookTrader stock chat room.