MannKind Corporation (NASDAQ: MNKD)
MannKind has had a tough time in the market recently, there’s no doubt about that. However, we’ve seen some interesting movement from the stock today that tells me that we may be looking at breakout activity in the near future. If you follow my writing, you know that I’m a big fan of MannKind in the long run. So, today, we’ll talk about the short term breakout I expect to see and why I believe MNKD will grow in the long run.
MNKD Looks Great From A Short Term Technical Level
From a technical standpoint, things are starting to look very good. Look at the chart below that covers the last 5 days in the market…
Over the past months, we’ve seen solid downtrends from the stock. However, over the past 5 days in the market, we’ve seen something a bit different. On May Fourth, MNKD seemed to have hit the floor and started bouncing back. Unfortunately, May 5th was a bear day market wide with red all over the board and MNKD was one of those that fell victim. However, after the fall, support hit a bit higher and we’re starting to see the stock pop back up again. With all of that said, I wouldn’t be surprised if we saw breakout activity in the stock relatively soon.
Why I Believe In MannKind As A Long Term Investment
MNKD is a very heavily debated stock. So, naturally when I give my opinion, I tend to get a bit of flack from the bears. Nonetheless, I think that MNKD is a great long term investment option, here’s why…
- Afrezza – First off, we have Afrezza. Afrezza is an inhaled insulin that has created a bit of a debate. We’ll talk about the debate below. Nonetheless, this before meal insulin doesn’t require diabetics to deal with injections. That is sure to be profitable in the long run.
- The Afrezza Debate – Afrezza has been the target of quite a bit of bashing recently. The reality is that sales numbers for the inhaled insulin are incredibly low. However, it’s important to dig into why sales numbers are low. First off, the drug has only been on the market in per-launch stage for a short while. During this period, there hasn’t been any advertising and those who wish to be prescribed the insulin need to jump through hoops with the FDA to get it. Nonetheless, MNKD has already reached $1 million in sales and that number is likely to go up dramatically when advertising starts with the official launch.
- Beyond Afrezza – One thing that I’ve noticed is that when experts talk about MNKD, they talk about Afrezza, but there’s rarely mention of anything else. The reality is that MannKind has a great pipeline; and beyond the pipeline, they have a great technology. It’s expected that the same technology used to deliver insulin through Afrezza can deliver other medications that can currently only be injected. This technology has the potential to change the way we see medication in the future.
What To Expect Moving Forward
As you could imagine from the post above, I’m expecting to see great things from MNKD in both the short term and long term outlook. In the short term, it looks like the stock has hit the floor and is gearing up for a breakout. In the long run, there are plenty of reasons that MNKD is likely to grow!
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!