Our Stock of the Week is Aerie Pharmaceuticals (AERI). AERI develops therapies for the treatment of patients with Glaucoma and other eye diseases. In May the company announced favorable phase 3 results for a drug used to treatment of glaucoma. If it is ultimately approved it will be the only once a day product available for this disease. The company is expecting FDA action in the first quarter next year.
AERI’s drugs will be the first new treatment for glaucoma in 20-years if approved. This has created some speculation of possible take-overs and has caused analysts to set aggressive price targets from $70 to more than $100. There is no idea on timing but the recent technical action is showing signs of a possible break out from the current trading range.
As always, we would not chase the stock higher on Monday morning but will look for a strong close a We are looking for the stock close at a new closing high over the $59 level. Alternatively, we would consider a buy on a lighter volume pullback.
The key here is the recent increased volume and a new closing high. That is what should attract potential momentum buyers.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing no positions in AERI. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.