OncoCyte Corp (OCX)

[Tim501]

There seems to be something good under the hood. Today's 13% move up came as big buyers had no choice but to push it higher to find shares. Two days ago the daily volume was 1.6K. Today was saw 1190K cross the tape. So Wednesday's volume was 75 times Monday's. No news to be found.

Today's volume was the second highest daily UP volume since the company's IPO/spin off from Biotime (BTX) in late 2015. On 4/4/16 OCX traded 218K on this headline (ONCOCYTE AND THE WISTAR INSTITUTE ANNOUNCE POSITIVE RESULTS IN THE DEVELOPMENT OF A BLOOD-BASED LUNG CANCER TEST)

We now know the science works and they are simply validating excellent standard of care worthy results (for lung cancer liquid biopsy test) due JAN 17. In DEC 16 we get early data for breast - same platform. They are already working a larger breast trial (hint -- good enough early data for them to continue for breast as the total platform looks strong).

Follow the money? The volume says buy, but no one seems to be here yet. Will they ever come?

The float is thin. BTX will likely sell some of their 14M shares and insiders have loaded up in late August on shares and reasonably priced options at $3.25. This should help the stock consolidate briefly after each leg up as we near late/early year data.

This is certainly a speculative play but results being validated were undeniably strong. So I've been wondering how the stock would trade in the silence as we near more data. I am presuming insiders are very confident as they could not dump shares easily if they suddenly had to, given the small float.

So given all that a 13% high volume pop today with no apparent news seems like a strong indicator -- and a buy signal, at least short term.

Tim