Friday, December 06, 2019 7:50:21 PM
/ Investing
Avita Medical Could Double in 2020 but Not Without Risk
A 'promising' stock.
ByBRUCE KAMICH
Dec 05, 2019 | 09:53 AM EST
Stocks quotes in this article: RCEL
In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer sat down with Dr. Mike Perry, CEO of Avita Medical (RCEL) , a company pioneering new treatments for burn and wound care.
Perry explained that severe burns are typically treated by taking large areas of skin from other areas of the body and using them to help spur the healing process. This process is very painful and doesn't yield aesthetically pleasing results. Avita's treatment uses significantly less donor skin to create a spray that can be applied to wide areas of the body. Their treatments have been approved for second- and third-degree burns and are available in 50% of burn centers across the country.
Not only is Avita's treatment less painful, Perry said, it's also less costly and provides a better outcome aesthetically. Cramer said Avita's stock is speculative, but very promising.
Let's take a look at this speculative name.
In this daily bar chart of RCEL, below, (note the lack of high and low data earlier in the year), we can see that prices have been in an uptrend with a five-fold increase in less than a year. Prices have crisscrossed the rising 50-day moving average line a number of times over the past year. The rising 200-day moving average line has stayed well below the price activity.
The On-Balance-Volume (OBV) line shows a strong upswing in March/April and then remained steady the rest of the year.
The trend following Moving Average Convergence Divergence (MACD) oscillator has stayed above the zero line for much of the past year. The indicator is just below the zero line now but could soon swing back to a buy signal.
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In this weekly line chart of RCEL, below, (note we used a line chart because of lack of high/low data), we can see that prices made a "long base pattern" or "line pattern" before launching its big rally this year. Prices are well above the rising 40-week moving average line but not extended above the line.
The weekly OBV line is very strong and supports and confirms the price gains. The MACD oscillator is bullish but recently turned down to a take profits sell signal or a sell in an uptrend.
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In this Point and Figure chart of RCEL, below, we can see a potential upside price target of $19.25.
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Bottom line strategy: RCEL has already made a big advance from the $1 area so a period of sideways consolidation would not be unusual. Prices could trade in a $6.50 to $10 range for a number of weeks before making a move to the $19-$20 area. Experienced traders who understand risk could be a buyer in the lower end of this trading range.
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Recent RCEL News
- AVITA Medical to Announce First Quarter 2024 Financial Results • GlobeNewswire Inc. • 04/15/2024 09:05:00 PM
- AVITA Medical Updates Expected First Quarter 2024 Revenue • GlobeNewswire Inc. • 04/10/2024 09:11:25 PM
- AVITA Medical Submits Response to FDA, Resuming Review Clock for RECELL GO PMA Supplement • GlobeNewswire Inc. • 02/29/2024 09:02:00 PM
- AVITA Medical to Present at TD Cowen 44th Annual Health Care Conference • GlobeNewswire Inc. • 02/29/2024 02:00:00 PM
- AVITA Medical to Host Investor Webinar Briefing • GlobeNewswire Inc. • 02/23/2024 02:01:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/22/2024 09:02:06 PM
- AVITA Medical Reports Fourth Quarter and Full-Year 2023 Financial Results and Provides 2024 Financial Guidance • GlobeNewswire Inc. • 02/22/2024 09:01:00 PM
- AVITA Medical to Announce Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 02/01/2024 09:10:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/10/2024 09:05:12 PM
- AVITA Medical Announces Exclusive Distribution Agreement with Stedical Scientific • GlobeNewswire Inc. • 01/10/2024 09:01:00 PM
- AVITA Medical Announces Preliminary 2023 Financial Highlights, Provides 2024 Financial Guidance and Business Update • GlobeNewswire Inc. • 01/10/2024 02:01:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 10:51:10 PM
- AVITA Medical to Present at the 42nd Annual J.P. Morgan Healthcare Conference • GlobeNewswire Inc. • 01/04/2024 02:00:00 PM
- AVITA Medical to Host Investor Webinar Briefing • GlobeNewswire Inc. • 12/04/2023 02:00:00 PM
- AVITA Medical to Present at the Piper Sandler 35th Annual Healthcare Conference • GlobeNewswire Inc. • 11/21/2023 09:15:00 PM
- Keep An Eye Out: Pre-Market Movers And Analyst Recommendations • IH Market News • 11/21/2023 02:10:28 PM
- AVITA Medical Updates Full Year 2023 Guidance • GlobeNewswire Inc. • 11/20/2023 09:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/09/2023 09:09:50 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/09/2023 09:07:10 PM
- AVITA Medical Reports Third Quarter Financial Results with 51% Revenue Growth over the Same Period the Prior Year • GlobeNewswire Inc. • 11/09/2023 09:01:00 PM
- AVITA Medical Announces Distribution Partnership with PolyMedics Innovations to Expand to Europe • GlobeNewswire Inc. • 11/09/2023 02:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/23/2023 08:36:53 PM
- AVITA Medical to Announce Third Quarter 2023 Financial Results • GlobeNewswire Inc. • 10/19/2023 08:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/18/2023 01:07:51 PM
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