MannKind Corporation building a base at $5.00

Mar 18th, 2015 – 1 Comment

Currently there are no strong indications that we can expect an immanent move higher.


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MNKD LOGO

Hello Lou,

There is a company called MannKind Co. (Alfred Mann), which has a very nice technology in the  pipeline for pulmonary drug administration. They are also working with Sanofi to market their diabetic drug Afrezza. What would be your opinion on this development, stock and Co. as a whole.

Thanks,

Serge

Hey Serge,

Thanks for the assignment. More often than not when I am asked what I think of a stock I most likely haven’t had it on my radar. But that doesn’t mean that I won’t examine the particulars associated with the company to identify how best to approach the shares. MannKind Corporation (MNKD Nasdaq) has marshalled the human and financial capital needed to gain Food and Drug Administration approval for Afrezza. The unique selling feature of the drug is that instead of injecting insulin patients can inhale the medicine. MNKD uses their TechnoSphere proprietary formulation technology that not only makes the product convenient to use but has also been proven to be rapidly absorbed into the body.

You made note of  89 year old billionaire Alfred E.Mann who successfully launched a series of companies that were eventually consolidated into larger organizations. To say that his track record is impressive would be an understatement. Mann continues to be involved with a number of companies outside of his chairmanship of MNKD.

A run of the charts will help identify how best to proceed with this stock.

 

MNKD

The three-year chart outlines the need to capture profits when they are available. MNKD has established a pattern of running hard and pulling back. In 2013 the stock ran from the $2.00 range to near $8.00 before retreating to $5.00. In 2014 the shares caught a lift from $5.00 to a 52-week high of $11.48 then fell back to support at $5.25.

The MACD and the RSI signalled a buy in May of 2014 as the stock broke above resistance at $7.00 on a high velocity move to the 52-week high. The FDA approval of Afrezza was announced on June 27, 2014 which puts this in the file marked buy on the rumour sell on the news. What is observable is that the stock is holding support at $5.25.

 

 

 

 

 

 

 

 

 

 

MNKD2

The six-month chart provides a close-up of the base building at $5.25. What investors need to respect is that the shares are trading below the 50 and 200-day moving averages and that a death cross formed in October of 2014. The MACD and the RSI signalled a buy in January of 2015 as MNKD bounced off of $5.25 and rant to $7.75 by early February. Currently there are no strong indications that we can expect an immanent move higher.

Next time I will examine Nordic American Tanker Shipping Ltd. (NAT NYSE) for Jeff.

Make it a profitable day and happy capitalism!

 

 

 

 

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