With Stocks Like These, what do you think? As the saying goes, the trend is your friend and that could be the case this week. With larger markets seeing big spikes in price and volume, the 80%-100% breakout stock is not an anomaly but a regular event. Just take a look at stocks like EnteroMedics Inc (NASDAQ:ETRM), Gevo, Inc. (NASDAQ:GEVO), and Zafgen Inc (NASDAQ:ZFGN).
EnteroMedics Inc (NASDAQ:ETRM) has had one of the busiest second halves of the week this week. Yesterday the stock held its spot on the list of trending NASDAQ stocks. On Thursday, the stock saw highs of $4.98 during the first half of the trading day. The company announced that its vBloc® Neurometabolic Therapy has now been implanted at two additional vBloc Institutes – MedStar Health in Maryland and Roper St. Francis in South Carolina. In order to qualify as a vBloc Institute, a medical center or hospital system must have integrated the Company’s vBloc Therapy and its vBloc® Achieve support program into its practice. The stock has continued to explode today and has hit highs of $9.58 marking a run this week of more than 430% since Tuesday’s lows.
Gevo, Inc. (NASDAQ:GEVO) has been no stranger to Nasdaq Stock breakouts either. announced in the closing days of December 2016 that it will issue a reverse stock split. The 1-for-20 reverse split will take effect at the close of business on Thursday, January 5, 2017. Even after reversing and seeing an opening price of $3.60, shares of GEVO have still managed to increase by as much as 48% during the early hours of the market’s open. Gevo is engaged in the development of renewable chemicals and advanced biofuels as alternative energy sources to traditional petroleum-based products. The company recently produced the world’s first cellulosic renewable jet fuel to be used on commercial flights.
has continued to climb today from what has been a week long bull run. Share volume and price saw their biggest respective moves on Friday when the stock moved up to highs of $4.35 just before the lunch hour. Tuesday shares of Zafgen saw lows of $3.18 but compared to these recent highs, it looks like it has recovered by as much as 37%. JMP Securities upgraded Zafgen from Market Perform to Market Outperform with a price target of $8.00.
Analyst Jason Butler stated, “We are upgrading our rating on Zafgen ahead of what we anticipate will be positive Phase 1 results for the company’s second-generation MetAP2 inhibitor, ZGN-1061. We believe these results will likely demonstrate proof-of-concept weight loss efficacy and support a favorable safety profile. We acknowledge that additional data will be needed to provide greater comfort regarding the safety profile (i.e., relative to beloranib); however, with a negative EV (0.75x net cash) and cash sufficient to fund a planned Phase 2 trial for ZGN-1061, we believe the upcoming Phase 1 read-out represents an attractive value-generating event. We derive our $8 price target through a riskadjusted NPV analysis of ZGN-1061 sales assuming development is pursued for a high-risk obesity indication.”