ABEO is undervalued; Market has NOT priced in FDA approval news.
Looks like a good monthly or longer play for the following reasons:
1. Beginning to see elevated RVOL (although it is Pre) in the hundreds.
2. recent fantastic news, the MAIN drug they are developing received FDA approval, this cannot be understated as a) it makes all previous revenues from quarters irrelevant (as they can now fully market and distribute the treatment, which will fix prior low rev issues, because its an R&D company), b) they were only losing about 40mil a quarter before which again, is actually relatively low compared to other pharma-dev companies (many have like 20mil + burn per quarter).
3. stock is trading at a consolidation region below the gap, for the last few years. (avg range between 3-5$, with some spikes between)
4. managed to stay in the NASDAQ due to a 25/1 reverse split, which many times just continues to crush the company stock, but this one has held steadfast in this lower region for the last three years.
5. Post RS, the price has trended slowly up, with higher lows, and a push back towards the gap, which was rejected in April 2024. Even after this the next lows (May 2024) were still higher, and the rejection from 6.80 region was followed by another higher low (april 2025).
Resistance at around 6.80, and next at the bottom of gap fill at 9.00.
Price has barely moved with the news, and this appears to be a slow burn up until it does a 15%-20% day and pops up on traders screeners.
I'm long on the drop yesterday below 5$.
Popped up on my scanner yesterday and will continue to track this trade. We'll see where it goes by Fall.
Note: we also saw the HIGHEST VOLUME in about 5 years yesterday. With little price movement, this reeks of institutional movement.
1. Beginning to see elevated RVOL (although it is Pre) in the hundreds.
2. recent fantastic news, the MAIN drug they are developing received FDA approval, this cannot be understated as a) it makes all previous revenues from quarters irrelevant (as they can now fully market and distribute the treatment, which will fix prior low rev issues, because its an R&D company), b) they were only losing about 40mil a quarter before which again, is actually relatively low compared to other pharma-dev companies (many have like 20mil + burn per quarter).
3. stock is trading at a consolidation region below the gap, for the last few years. (avg range between 3-5$, with some spikes between)
4. managed to stay in the NASDAQ due to a 25/1 reverse split, which many times just continues to crush the company stock, but this one has held steadfast in this lower region for the last three years.
5. Post RS, the price has trended slowly up, with higher lows, and a push back towards the gap, which was rejected in April 2024. Even after this the next lows (May 2024) were still higher, and the rejection from 6.80 region was followed by another higher low (april 2025).
Resistance at around 6.80, and next at the bottom of gap fill at 9.00.
Price has barely moved with the news, and this appears to be a slow burn up until it does a 15%-20% day and pops up on traders screeners.
I'm long on the drop yesterday below 5$.
Popped up on my scanner yesterday and will continue to track this trade. We'll see where it goes by Fall.
Note: we also saw the HIGHEST VOLUME in about 5 years yesterday. With little price movement, this reeks of institutional movement.
Note
Typo fix: b) they were only losing about 40mil a quarter before which again, is actually relatively low compared to other pharma-dev companies (many have like 200mil + burn per quarter).
I wrote 20mil, but meant 200mil.
Trade active
Price action is going well; we are up 25% from yesterdays open, with a rejection from the Tier 1 resistance. Still holding steady and looks like itll push through by the end of the week.
First target is at the Tier2 resistance, as it will likely reject off it the first attempt.
Second target will be discretionary based on how it moves into/through the gap.
Earnings is coming up, so I expect some higher volatility with their call and re-iterations of the FDA approval and what it means for future guidance for the company.
I dont expect earnings to be worth anything from the EPS standpoint, but merely from future guidance.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.