Good Morning!
It’s been a jam-packed week of alert action and I’m starting to think it’s good that I saved PharmaCyte Biotech Inc. (PMCB) for last.
PMCB combines just about all the points that made my recent alerts such no-nonsense plays: simple story, low PPS, technical lines pointing up.
But with PMCB, the story is about as huge as it gets. We’re talking about a cure for diabetes here, in pre-clinical trials even as we speak.
And the PMCB chart is now within 0.02 spitting distance of completely breaking out of the box for the first time in over a month:
Is that the highest-impact chart of our week? What I keep coming back to is the way PMCB has started nudging up toward the 50-day line.
That line is really the only implied near-term resistance left for PMCB to wrestle with. Nothing but blue sky stretching up on the other side.
I also like the MACD stepping up to confirm the recent trend. Now that the RSI is tapping 50, we might have a technical rally to work with here.
If so, all we really have to do is get exposure to PMCB as soon as possible and let natural momentum do its thing between here and the exit.
As for the fundamental forces driving that momentum, PMCB really does have one of the biggest medical targets on the planet in its sights.
Here’s a guy saying Wall Street can basically “put whatever number you want” on PMCB if its innovative artificial pancreas actually works. (Read more)
The key is that PMCB can build little containers for good cells and inject them into the body like tiny space capsules. (Read more)
Those cells can then make insulin or whatever the body needs, without fear of being wiped out by the natural “rejection” defense systems.
PMCB proved in the lab a few weeks ago that the system works, so now it can start wrapping up cells to replace a sick pancreas. (Read more)
The FDA has even given PMCB “orphan” status for pancreatic cancer. The average orphan drug is worth $1B so this should create a little confidence.
Just one preclinical program can be worth $50-80M by itself, which a little below where PMCB is right now. No wonder the journals are taking note!
Previously this program was a little poorly explained but I think this summed it up nicely . . . maybe that’s what got traders taking a fresh look.
But if you hadn’t heard about PMCB and its “pancreas in a box” before today, I bet there’s still plenty of other market players still in the dark.
Awareness is spreading. The trial has started. PMCB looks ready to continue its evolution today and the chart seems happy to cooperate.
What’s stopping you from trading today? The long weekend hasn’t started yet!
Sincerely,
Papa Roach
