Over the last few weeks Salix Pharmaceuticals Ltd. (SLXP) has consistently been showing up in my stock screener. Several days ago, I saw a nice change in its chart pattern, the stock price broke above the 50 day moving average and, up to date, has held steady above it. I like that behavior provided it holds above 11.82 (50 DMA).
Salix Pharmaceuticals, Ltd. engages in acquiring, developing, and commercializing prescription drugs used in the treatment of various gastrointestinal diseases in the United States.
SLXP is trading today at 11.89, 27.4% off its 52 week high, trades an average of just over 780 thousand shares per day. A heavily shorted stock (about 1/3 of its floating shares) could make an investor with contrarian views salivate should a short squeeze occur. If the stock price continues on and uptrend, shorts may head for the exits. It is early to tell if this move can carry through the next 2 months.
I am betting that this one is going to perform well in the future.
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