When Growth And Profitability Show Up Together
Our first trade today comes from our custom “Really Time To Buy?” screen on Chartmill, which looks for fundamentally strong stocks in constructive technical setups. This cross-border commerce platform is a particularly clean fit: transaction volume rose more than 40% year over year in the second quarter, revenue grew nearly 40%, adjusted EBITDA increased more than 60%, and management raised its full-year outlook.
Those operating results arrive with an RSI near 50, a Technical Rating of 9, a Setup Rating of 8 and a Fundamental Rating of 7. The shares also remain above a rising 50-day exponential moving average. That combination gives us both an operating trend and an entry setup, rather than asking one to compensate for the other.
A More Fillable SANA Retry
Sana Biotechnology (SANA 0.00%↑) is a different animal. The thesis hasn’t changed, but the structure has. This is the company we wrote about last year that’s been chasing a cure for Type 1 diabetes.
The key technology makes transplanted cells less visible to the immune system, helping protect them from both transplant rejection and the autoimmune attack involved in Type 1 diabetes. That same technology has other potential applications, including in organ transplants. Our August 18th attempt and Friday’s retry both went unfilled. Both used the same thinly-traded options.
This time, we’re using a different structure built around more active options. That new geometry should give the market maker a cleaner package to price, and hopefully, a better chance of us getting a fill at a fair price.
Sana’s roadmap still fits a longer timeline. The company is scheduled to present additional UP421 clinical data at the European Association for the Study of Diabetes annual meeting on October 2nd, while continuing work toward clinical studies of SC451 in Type 1 diabetes and SG293 in non-Hodgkin lymphoma.
Wide Markets, Firm Limits
We priced trades under Black-Scholes, Bjerksund-Stensland, and a Cox-Ross-Rubinstein binomial model, then set the maximum price we’re willing to pay for them below the most conservative model value. If the market won’t meet those limits, we’re not going to chase the trades.
Full details below.
Today’s Chartmill Trade
Cross-border commerce infrastructure / profitable-growth and raised-guidance theme.
RSI: 50; Chartmill Technical Rating: 9; Setup Rating: 8; Fundamental Rating: 7.
