Undiscovered and Undervalued Penny Picks

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NNLX

Background:
Patented nanotechnology applied to the petri dish for quicker detection of microorganisms such as tuberculosis, group b strep, anthrax, etc. see company's test results page. Has been in R&D phase for the past 5-6 years.

Company just announced commercial launch of their products under FDA 510k exempt status. Their product is disruptive to the 'in vitro diagnostic' (IVD) market space which has been transitioning from traditional petri disc cultures to faster means via PCR, flow cytometry, etc. Traditional petri dish cultures take too long to grow the microorganisms. PCR, flow cytometry, etc. doesn't require waiting for growth of microorganisms, but suffer from
1) high equipment costs ($100k+)
2) inability to tell if the microorganism is alive or dead
3) inability to detect antibiotic sensitivity
4) need for highly skilled technicians to operate equipment.

NNLX technology also doesn't require waiting for growth of microorganisms and is as fast or faster than PCR, flow cytometry, etc. AND:
1) works on existing equipment with the addition of an incubator
2) detects if the microorganism is alive or dead
3) detects antibiotic sensitivity
4) requires no special training

Note that antibiotic sensitivity is extremely valueable since it allows targeted treatment of infection as opposed to the current method of treatment which is to bombard the offending microorganism with a cocktail of every available antibiotic in hopes that one of them will work while at the same time risks the creation of antibiotic resistant superbugs.

Note that there are two independent third party reports due out soon. The two independent third parties are the Texas Medical Center for Group B Strep and Battelle Memorial Institute for tuberculosis. They are both very large and reputable institutions.

The company typically provides updates via their website. Then follows up in a few days with an official press release.

Hence, the chart shows a jump on 8-15-12 when the website update was posted and not much of anything on 8-21-12 when the press release hit the wires. Technical wise:
1) pps has retraced to 8-day ema after almost hitting the 20-day ema intra day
2) rsi has come down from ~80 to ~61
3) macd rounding down nicely getting ready to continue the uptrend
4) fast sto pulled back nicely into neutral territory from overbought levels

Chart is set up nicely for a good entry. News is great and will continue as the company is launching product and marketing efforts. As they've timed the launch with the soon to be published reports, I'm guessing that they plan to use the reports as marketing material to shop their product to potential customers. IMO, this is the beginning of a long running uptrend for this stock as the company enters the IVD market space and begins taking market share.