I'm Buying This 'Very Under-the-Radar' Stock as Profit-Taking Picks Up
The shares are breaking out to new highs on decent volume.
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Momentum slowed on Tuesday morning, with some mild profit-taking in retail names and among some of the Magnificent Seven (MAGS) . The Russell 2000 (IWM) , which hit a new all-time high, is down slightly, but breadth remains even, and there are approximately 190 new 12-month highs.
It is an extremely tricky market with strong momentum in many very extended stocks. Data centers and semiconductors continue to lead on the big AI deals, and Nvidia (NVDA) is jumping 1.6% on a deal with Elon Musk's xAI venture.
I'm giving some of my extended holdings room to pull back and consolidate, and staying very selective with new buys. It has been a great run recently, and I want to be more aggressive about not giving back gains. On the other hand, it's unlikely that we will see a significant correction, so I don't want to let go of good names that haven't breached crucial technical support levels.
One position I added to this morning is Emergent BioSolutions (EBS) . I've mentioned this very under-the-radar play numerous times, and the price action has improved nicely. It is breaking out to a new recent high on decent volume Tuesday morning.
Emergent BioSolutions develops and sells vaccines, antibody therapeutics, and medical devices to address public health threats, including infectious diseases, biodefense scenarios, and opioid overdoses. It offers products for both civilian and military populations and targets threats such as smallpox, Ebola, anthrax, botulism, and mpox. It also offers contract development and manufacturing services for pharmaceutical and biotech clients.
The company has undergone a substantial restructuring and substantially exceeded recent revenue and EPS projections. At under $10, the stock is a great value, and the price action is very favorable.
I continue to look for other opportunities, but until this action cools off a bit, there are unlikely to be many great entry points.
At the time of publication, Rev Shark was long NVDA and EBS.
