SQNM upgrade today. Summary:
Finally, we would note that the convertible debt offering alleviated near-term financing risk this fall, and positive coverage decisions could dramatically accelerate revenue growth with the recognition of legacy claims (similar to what happened to GHDX in 2008/2009). We are therefore changing our rating on SQNM to Overweight (Vol) from Equal-Weight (Vol) and raising our price target to $8 from $4 (4.4x our current 2014 revenue estimate on an EV/sales basis).
Pretty strong chart over the past 2 weeks:
11/8 close $3.03
11/9 after cc broke through 50 day MA and settled right on it at $3.60
11/13-14 rally continued until hitting resistance at $4.12
11/15-20 pulled back to retest 50 day MA several times. Held
11/21 rallied to break resistance at $4.12
11/23 rallied to test resistance at$4.36. Fell back and closed below.
11/24 Stephens upgrade impetus to $4.50 premarket above $4.36 resistance. Will be interesting to see how it acts throughout day.
After $4.36 it looks like next resistance is $4.59 and then clear sailing until some major resistance in the $4.98-$5.10 range. I'd love to see this break above $4.60 and consolidate for a brief period. Then a national payor announcement might be perfect for the next leg. GL
Reverse every natural instinct and do the opposite of what you are inclined to do, and you will probably come very close to having a perfect golf swing.
Ben Hogan
