MannKind Corporation (NASDAQ: MNKD)
MannKind has been a very interesting stock to watch over the past few months. First, there was the Goldman Sachs downgrade that sent the stock spiraling down, then there was the Jefferies survey that sent the stock climbing. Now today, the stock is down yet again; but I’m not concerned. As a matter of fact, I believe that today’s declines are a great entrance opportunity. Here’s why…
MannKind’s Declines Are Natural Market Movement
One thing that investors and traders should all keep in mind is the fact that price movements in the market are a series of overreactions. So, it’s not uncommon to see dips after gains or slight gains after declines. As a matter of fact, experienced traders tend to look at these dips as buying opportunities. In this particular case, that’s what I see. The reality is that MannKind has been on a strong uptrend recently; and at some point, the stock is likely to take a bit of a rest. That seems to be happening today. Nonetheless, trends aren’t likely to change directions, and this one is likely to continue moving up.
Why I Think MNKD Is Likely To Grow Long Term
In the long run, I’m expecting to see even more gains. The reality is that when we talk about MannKind, we’re talking about a great company with tons to offer. Here are a few quick reasons I’m expecting to see long term gains…
- Afrezza – First off, While many may have doubted Afrezza in the past, I’ve always thought that the inhaled insulin was somewhat amazing; and eventually would lead to sales. Low and behold, a recent survey by Jefferies showed that not only do endocrinologists know about Afrezza, they intend on using it more in the future. So, we can expect Afrezza sales to climb relatively soon; which will lead to profits!
- Technosphere Technology – MannKind’s technosphere technology is the technology they used to create Afrezza; making it possible to take insulin without a shot! MannKind has been very clear that they aren’t planning on licensing out technosphere, and that they are working to develop more medications that use the technology. So, I’d imagine more products will be coming out relatively soon.
- Strong Management – In the past, I’ve talked to a few people that weren’t necessarily fans of MannKind management. While they liked the company’s product, they didn’t think that the company had the leadership it needed to grow. While I personally disagree with this argument, I can understand where it comes from. Nonetheless, MannKind recently welcomed Dr. James S. Shannon back to its board of directors; further strengthening its management team.
Considering everything I’ve outlined above, I’m expecting to see gains in both the short term and the long term. If you didn’t catch today’s dip, keep watching as dips are likely to happen during uptrends; and these will likely lead to profits!
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!