Technically, I believe the bounce in MSLP is due to a double bottom, formed in April when shares once again touched the $4.00 floor of support (dotted green line). While dormant, the RSI was picking up strength, which should have been your second bullish indication.
Moreover, the recent spike has come on almost no notable news. Seeing as this company has a market cap of just $88 million, I doubt that anything is becoming of this name. I would sooner bet that this was some sort of "pump and dump" before I would buy the stock.
In a bull market like the one we are currently in, there is no need to scrape the bottom of the barrel. It is for this reason that I recommend that you buy GNC, a company that offers a yield of 1.59% and has a superb loyalty program (something I can personally vouch for). This is a much safer way to play the supplement space.
As for Opko, I think that many people were discouraged when they offered to buy Bio-Reference Labs. However, I think this was a smart move - one that would certainly coincide with Opko's current operations. Though, buying Opko now may not be the most lucrative move, seeing as it has popped 5% today (June 26) on what seems like a combination of a dead cat bounce off a small news headline and a short squeeze. With that being said, the stock is off its high of about $19, and with the 20% short interest, one good piece of news could send this stock soaring.
If you're interested in the biotech sector, I also like Receptos. Read my take here. Also sign up for my mailing list here.
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