Hello traders, Barrie Einarson here from Trade Ideas with today’s edition of “What Makes This Trade Great.” Today, we’re diving into two fascinating biotech plays that have recently caught my attention: SMMT and TIL. Let’s break down what’s been happening with these stocks and why they deserve a spot on your watchlist. To Subscribe: https://go.trade-ideas.com/SHQ
Use Promo Code BARRIE15 for 15% off

SMMT: The Surprising Surge

First up, let’s talk about SMMT. This stock has had an incredible run over the past few days. Just three or four days ago, SMMT announced late-stage results for its cancer drug that appear to outperform Merck’s equivalent treatment. While we don’t have all the details, the news looks legitimate enough to have sparked significant interest in the market.

Now, I want to make it clear: this is not investment advice, and I’m not acting as an advisor here. But it’s worth noting that our AI system flagged a buy signal on SMMT yesterday, and it’s popping up again today. This stock has been moving fast, and the market is definitely paying attention.

Comparing SMMT with TIL: Key Differences in Float

Now, let’s compare this with TIL, another biotech stock that has been on an even more impressive run. Why is TIL outperforming SMMT? One key reason is its tiny float of just 3 million shares. Our AI signaled a buy on TIL three days ago, and since then, the stock has been on an absolute tear.

What’s interesting about TIL is that its drug is currently being tested in China. I’m not here to disparage China in any way, but there are different market dynamics at play. On the other hand, SMMT’s drug is U.S.-based, which could appeal more to certain investors.

TIL’s Cash Advantage and Potential for More Gains

Here’s another reason TIL is intriguing: they recently raised $280 million, which puts them in a strong cash position moving forward. Given this financial strength, there’s a good chance TIL could continue its upward trajectory. The stock had a few pullbacks today, which might have provided entry opportunities, so keep a close eye on it.

But remember, one of the major differences between SMMT and TIL is their float. SMMT has 135 million shares, compared to just 3 million for TIL. This lower float for TIL is likely contributing to its more aggressive price movements. Even so, SMMT has managed to climb 16% today alone, going from $12 to a high of $33 in just three days. Not too shabby!

Final Thoughts: Keep These Stocks on Your Radar

Both SMMT and TIL are stocks worth watching closely in the coming days. While SMMT offers a compelling U.S.-based story, TIL’s low float and strong cash position make it a particularly exciting play. As always, make sure to do your own due diligence and remember that no trade is without risk.

Have a great weekend, everyone, and I’ll see you back here on Monday!

Happy trading!

— Barrie Einarson