Oncothyreon Inc (USA) (NASDAQ: ONTY)
Oncothyreon has had an interesting week in the market thus far. On Monday, the company announced data with regard to a lung cancer treatment that got investors incredibly excited. As a result, we saw a tremendous spike in the ONTY stock price. However, Tuesday brought a decent sized correction, making Oncothyreon give up about half of its gains. Throughout the rest of the day yesterday and today, Oncothyreon has traded relatively flat. So, the big question on the minds of investors and day traders alike is, “When will the next breakout come?” Personally, I think it’s going to happen relatively soon. So below, we’ll talk about what we can expect to see in both the short term and the long term outlooks from ONTY.
Where Will ONTY Go Short Term?
When it comes to the short term outlook of any stock, I like to look to the stock chart for clues as to what I can expect to see. In this particular case, there’s a big flag! No, really, look at the chart to the left! After Monday’s steep climb, the correction and the sideways movement, what we’re seeing in the stock chart is known as a bullish flag. This is generally the sign that a relatively big breakout recently happened and the market is taking a rest. However, it also tends to be the prelude to the next breakout. Because the flag is a bullish flag, the likelihood of the next breakout being bullish is much better than the likelihood of the next breakout being bearish. So, in the short term, I’m expecting to see more gains.
What We Can Expect From Oncothyreon In The Long Run
In the long run, I’m expecting to see more of the same; however, there’s no chart that can tell you that. Instead, for long term outlooks, I tend to look at fundamental data with regard to the company. There are a few reasons that I’m expecting to see gains….
- ONT-380 – ONT-380 is Oncothyreon’s candidate as a possible treatment for lung cancer that’s getting closer and closer to FDA approval. The company recently presented data with regard to the treatment at the ASCO 2015 presentation; showing that the treatment is effective and well-tolerated in patients with lung cancer. Because of the vast amount of people that this treatment could prove to help, this is likely to become incredibly profitable.
- Pipeline – Outside of ONT-380, Oncothyreon is constantly working to improve its pipeline of candidates. Since a larger pipeline means more profits down the road, I’m happy to see the work here.
- Management & Plan – Finally, ONTY has a solid management team who clearly has a plan with regard to growth of the company and is following that plan to the T. All in all, strong management and good planning generally leads to great gains in the market.
What Do You think?
Where do you think ONTY is headed and why? Let us know in the comments below!