Kyle Dennis of BiotechBreakouts.com likes antibiotic company Cempra Inc., which has a Phase 2-3 data readout coming by the end of the year, but which also is involved in a deal to merge with Melinta Therapeutics that could act like a secondary catalyst. With two events involved — and with more cash on the balance sheet than the stock has in market cap — Dennis believes CEMP will be a play entering the fourth quarter, after the merger but in anticipation of good news on the data release. He is in no rush to by the stock — thinking it will stay near its current level of $3.15 until the events get closer — but believes the stock could double or get to $7 per share with good news.
Kyle Dennis is an events-based trader who runs Kyle Dennis’ Biotech Breakouts (biotechbreakouts.com). He had no position in CEMP when he recorded this interview on Friday, Sept. 22, but was expecting to buy it in the fourth quarter of 2017, as discussed here. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe 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.