Karyopharm Therapeutics Inc (KPTI)

[Juice Newton]

I believe this stock is primed to explode

I guess you can call this pumping, but let me just lay out some facts that lead me to believe that KPTI is about to shoot up dramatically like it did this time last year.

It's a low float, only 20 million shares. It's been beaten down by shorts over the past few months to near 52 week lows. The amount of shares short is currently sitting at a whopping 34% of float with 9-10 days to cover, according to Yahoo. The stock price is wound very tightly right now. All this leads me to believe that any good news would be a the catalyst for an explosion. It could very well be a repeat of last year where the price shot up 80% in one day. Why did it shoot up last year? They had really good results reported at ASCO 2014. Well, ASCO 2015 is coming up next weekend.

Last year the price went back down, likely because shorts jumped all over a stock that shot up 80% in one day. I doubt that anyone who can read a chart would chase the stock with that information in mind, so it might be 50-80% over the course of a few days. Actually, it might not matter if a new buyer knows what happened last year. The float and daily volume are so low that there might not be anything they can do about it if demand is high. Shorts will have to start covering after some moderate increase in price. This stock can easily squeeze them into buying quite high.

If you get in this week near 52 week lows, you could easily see a huge gain the next week, maybe near 52 week highs. Ok, so that's short term picture.

For the long term, this company has everything a clinical stage biotech needs to succeed. It has cash in the bank to last until 2018. Couple this with insider buys in the past few months (anticipating ASCO) and I think current holders are safe from further dilution in the near future. The science is great. They are the first company with a viable XPO1 inhibitor. It has no known adverse side effects and preliminary tests suggests that it does what it is supposed to do. Selinexor is in multiple Phase 2 trials for multiple indications right now, data of which will be presented at ASCO next weekend. I think over the next 3-5 years the enterprise value will at least double. I can't guess at the market cap over that time, but many analysts have 2015 price targets of $58-60 per share, more than 100% upside from today. Downside potential from here is, what, maybe a buck or two a share?

So there's my sales pitch. Get in this week at around $26/share and see huge returns soon after, or buy and hold for a ten bagger well within 5 years.