Something seems to be going on with bioprinting pioneer Organovo’s (ONVO) stock again. After making a run from a couple bucks to $10.90 last spring to summer, and subsequently falling back to the low two dollar area after speculation naturally turned to profit taking, the stock seems to have woken up in the last few weeks. And today, it’s continuing that upward move on high volume.
The driver? I can’t say. These sexy, small cap stocks can just move on momentum, as you saw with Arcam (AMAVF) very recently. But, Ogranovo has considerably more liquidity than Arcam, so its less able to be manipulated. That means there may be something going on we don’t know about. Someone is accumulating, some news is about to be coming out…who knows. Or, it just could be others seeing the momentum building.
There is one development that I can say I used as a reason to purchase more shares recently. And this is the collaboration with Autodesk in developing a CAD program that they hope will be the bioprinting design software of the future. I saw this as a big validation of the company itself, and a possible new revenue source someday. Others I’m sure thought the same thing.
In addition, they have been working on cleaning up their balance sheet and raise cash through a tendor offer. The goal is to get their stock uplisting to the NASDAQ, which will then allow more mutual funds and ETFs to own the shares.
Technically, the stock today cleared it’s mid-October high of $3.40, and did so on strong volume. The average daily volume is 425,000 shares, but the last two days have been more than triple that, and today looks to be the same.
The daily chart of Organovo (ONVO) as of 1/9/12 12:15 PM EST
The weekly chart of Organovo (ONVO) as of 1/9/12 12:15 PM EST
I can’t recommend what you should do with your shares if you own them, or if you should buy some if you don’t. All I can say is that with my shares, I divide my holdings into those designated as a long term hold, and those as trading shares. I let the long term shares ride, and watch my trading shares like a hawk, trying to guess at the right exit point without being too greedy.
If you are not familiar with Organovo, this article will give you a nice introduction.
This article was written while the stock market was still open, in midday trading.
Disclosure: I own ONVO shares.
