Williams: Zosano Pharma (ZSAN) is worth a look now

RagingBull.comRagingBull.com ·

   Jeff Williams of PennyPro.com says that Zosano Pharma Corp. (ZSAN) is a play right now thanks to an interesting mix of technicals and fundamentals. He noted that the biotech penny stock was strong in October into November before taking a dive and establishing a base; it reached its 20-day moving average line Thursday when he bought 13,000 shares at 66 cents each. In addition, Williams noted that there has been insider buying in the stock — several different transactions in the last few weeks — which he said can be as strong a positive for a short-term trade on a penny stock as it is for a long trade on a big blue-chip name.
   Williams is expecting the stock to move up to a recent double-top established in November of 77 cents per share; he is setting a stop-loss on the trade between 61 and 62 cents, the area where he saw the insiders buying shares. Williams noted that Zosano is buyable below 70 cents, pointing out that if the stock ultimately breaks through the double top, it could get to the next recent high, which is in the 90-cent range.
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Jeff Williams is the lead trader of PennyPro.com. He is a short-term trader of stocks under $5 a share. Before recording this interview on Dec. 14, he had just purchased 13,000 shares in ZSAN at 66 cents per share and was planning to hold/trade them as described in this conversation. The Raging Bull podcast features experts from the site talking with Chuck Jaffe, a nationally syndicated financial columnist,  on his show “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers. Follow Jeff Williams on Twitter @ThePennyPro; follow Chuck Jaffe @ChuckJaffe and @MoneyLifeShow, and follow RagingBull.com @RagingBull.

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