Neos Therapeutics, Inc. (NASDAQ:NEOS) Value Stock at $6.50
Neos Therapeutics (NEOS) has drifted down in recent months after rejecting a $10.25 a share hostile buyout offer. The shares now trade at just $6.75 apiece. The company did the right thing by rejecting the lowball bid, but investors seeking a quick takeout have largely abandoned the shares as a result. However, Neos now has three approved drugs in the growing ADHD space. This means they can be pushed by the same sales force creating economies of scale.
In addition, the company is seeing very fast uptake of its latest offering and achieved 90% year-over-year sales growth in the first quarter. Neos may need to do one final capital raise if it remains a standalone entity but is cheap with just a $200 million market cap. I believe the company will eventually be acquired, but in the mid-teens range and not at $10.25 a share.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 7.59.
The projected upper bound is: 6.92.
The projected lower bound is: 6.02.
The projected closing price is: 6.47.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 16 white candles and 30 black candles for a net of 14 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 35.8476. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 28.15. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 16 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -87. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 23 period(s) ago.
Rex Takasugi – TD Profile
NEOS THERAPEUTCS closed up 0.050 at 6.500. Volume was 116% above average (neutral) and Bollinger Bands were 2% narrower than normal.
Open High Low Close Volume___
6.400 6.850 6.363 6.500 631,693
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6.68 7.76 8.99
Volatility: 39 38 76
Volume: 474,902 259,084 495,854
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
NEOS THERAPEUTCS is currently 27.7% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect moderate flows of volume out of NEOS.O (mildly bearish). Our trend forecasting oscillators are currently bearish on NEOS.O and have had this outlook for the last 34 periods. Our momentum oscillator is currently indicating that NEOS.O is currently in an oversold condition.