NOVAN a biotech stock that might fly very soon
Disclaimer: I do own a position and you may want to do your own DD, since this post maybe bias even if its not. Please do your own research.
Novan is a pennystock biotech that picked up steam last fall like many pennystocks, but through out 2021 stocks have been getting hit with biotech and pennystocks/low caps being the worst hit sectors. Cathie Woods states in her investment strategy is buy sectors that are hurt the most and that have the protentional to move higher. Novan is its own patient product of nitric oxide throughout United States and Europe and wants to expand on it.
News
-March 29th The CEO bought 70,000 shares, which is bullish when the CEO is buying
-Voting has started and results come in on May 4th. There are many things in here such as increasing the share count by 15million, which shares off 200million doesn't seem much. This doesn't mean shares will get dumped it just means they have the option to do offerings in the future.
-Q2 (current quater that last till the end of May possibly June) they will get the results of sb206 B, which looks positive. sb206 will the first every treatment for a skin condition called Mollescum. In doing a quick google search, business wire estimates in 2017 there was over 12million cases and half was in the United States. Googling Mollescum cases in the United States go up 200k a year. Now how does Novan fit into this? Well they would be the only FDA treatment on the market, which would send market shares shoring to a billion dollar valution in a short period time (pt would be around $7).
-They also partnered up with Catalent to develop a COVID treatment, which has shown with Novan's product that can reduce the spread of Covid of around 90%. Which catalyst would send Novan to a 10billion dollar valuation, but its up to Catalent. This product is suppose to hit in Q3/Q4, but leans more of a Q3.
Pipeline
-Like ZOM, Novan is also entering the pet care field, but not a device to do testing. On the last webinar investor prestation, they are working to test their product to help skin dieses in dogs and atm are targeting K9s. This would pickup after sb206 and would get more news sometime around q4 or early next year (most likely when they get the marketing of sb206 going).
TA: Now that was alot of "shilling," but its great to know the protentional of a mid/long term play of Novan. It begs the question is if the pennystock is under the radar. Zack Investments and a big advocate in Novan and gave Novan a pt of $4, but 2021 hit and crashed the market. So heres some TA that might help you keep your risk at check if you enter.
-Resistance in the short term is at $1.08, but closing was $1.10 on April 16, so $1.13 would act more of a challenge. After that is $1.32, $1.45, and then $1.63. With tight consolidation in the past between $1.63-$1.76, breaking that could shoot up to $1.96 or $2+
-Support: support is tricky cause we are free falling like most pennystocks such as ZOM. I would say a micro 5min scale, Every $0.02 is support, but on the hourly we could fall as low $0.96, but its unlikely. Last year we gain compliance of the $1, so there's a lot of buyers from here too $0.96 that will keep it above $1. Now if we get a negative catalyst we could drop too $0.86-$0.81
-MACD leans bearish as we look for a reversal
-RSI is oversold and leans bullish for a bounce back with resistance at 46.89. If people wondering where I get these RSI lines, I look at where its uptrending and make a guess where it breaks and the price starts dropping and the RSI goes from overbought to oversold levels.
-VPVR means shit like ZOM's TA, but in the past a lot of support at these levels in the past.
-Current EMA 50 is at $1.27, 128 is at $1.40, and the 200 is at $1.45.
Final Thoughts
Biotechs are risky, but with the CEO buying at $1.40 and seeing the price way below that is a sign to toss in some money or go all in. Its up too you, but I would take the bet and wait this storm out. The confidence between ZOM and Novan is I would pick a stock that has a bigger upside in a near term timeline. Again its best too do your own your research.
Novan is a pennystock biotech that picked up steam last fall like many pennystocks, but through out 2021 stocks have been getting hit with biotech and pennystocks/low caps being the worst hit sectors. Cathie Woods states in her investment strategy is buy sectors that are hurt the most and that have the protentional to move higher. Novan is its own patient product of nitric oxide throughout United States and Europe and wants to expand on it.
News
-March 29th The CEO bought 70,000 shares, which is bullish when the CEO is buying
-Voting has started and results come in on May 4th. There are many things in here such as increasing the share count by 15million, which shares off 200million doesn't seem much. This doesn't mean shares will get dumped it just means they have the option to do offerings in the future.
-Q2 (current quater that last till the end of May possibly June) they will get the results of sb206 B, which looks positive. sb206 will the first every treatment for a skin condition called Mollescum. In doing a quick google search, business wire estimates in 2017 there was over 12million cases and half was in the United States. Googling Mollescum cases in the United States go up 200k a year. Now how does Novan fit into this? Well they would be the only FDA treatment on the market, which would send market shares shoring to a billion dollar valution in a short period time (pt would be around $7).
-They also partnered up with Catalent to develop a COVID treatment, which has shown with Novan's product that can reduce the spread of Covid of around 90%. Which catalyst would send Novan to a 10billion dollar valuation, but its up to Catalent. This product is suppose to hit in Q3/Q4, but leans more of a Q3.
Pipeline
-Like ZOM, Novan is also entering the pet care field, but not a device to do testing. On the last webinar investor prestation, they are working to test their product to help skin dieses in dogs and atm are targeting K9s. This would pickup after sb206 and would get more news sometime around q4 or early next year (most likely when they get the marketing of sb206 going).
TA: Now that was alot of "shilling," but its great to know the protentional of a mid/long term play of Novan. It begs the question is if the pennystock is under the radar. Zack Investments and a big advocate in Novan and gave Novan a pt of $4, but 2021 hit and crashed the market. So heres some TA that might help you keep your risk at check if you enter.
-Resistance in the short term is at $1.08, but closing was $1.10 on April 16, so $1.13 would act more of a challenge. After that is $1.32, $1.45, and then $1.63. With tight consolidation in the past between $1.63-$1.76, breaking that could shoot up to $1.96 or $2+
-Support: support is tricky cause we are free falling like most pennystocks such as ZOM. I would say a micro 5min scale, Every $0.02 is support, but on the hourly we could fall as low $0.96, but its unlikely. Last year we gain compliance of the $1, so there's a lot of buyers from here too $0.96 that will keep it above $1. Now if we get a negative catalyst we could drop too $0.86-$0.81
-MACD leans bearish as we look for a reversal
-RSI is oversold and leans bullish for a bounce back with resistance at 46.89. If people wondering where I get these RSI lines, I look at where its uptrending and make a guess where it breaks and the price starts dropping and the RSI goes from overbought to oversold levels.
-VPVR means shit like ZOM's TA, but in the past a lot of support at these levels in the past.
-Current EMA 50 is at $1.27, 128 is at $1.40, and the 200 is at $1.45.
Final Thoughts
Biotechs are risky, but with the CEO buying at $1.40 and seeing the price way below that is a sign to toss in some money or go all in. Its up too you, but I would take the bet and wait this storm out. The confidence between ZOM and Novan is I would pick a stock that has a bigger upside in a near term timeline. Again its best too do your own your research.
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