Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.

Swaggy's Top Stonks

Welcome newcomers to Swaggy's Top Stonks and thank you for subscribing.

Today we’ll be going through the most popular growth stocks and dividend plays among retail traders for Q3 of 2023 (July through September).

Additionally, we have promotional content to follow the traditional newsletter content so please read the important disclosures at the end of the email.

Today's Letter

• Most popular growth stocks for Q3, 2023

• Most popular dividend plays for Q3, 2023

Today’s Charts are powered by ChartWiz. Sign up below or tap on any of the images to be notified of their Alpha-Launch.

Now, for our paid/promotional content on behalf of Alts.co.

What is NMTC?

NMTC (NeuroOne Medical Technologies Corporation) hasn’t been getting much love recently, but it could be poised for a big reversal and breakout.

The Minnesota-based company is in the early stages of developing minimally invasive solutions for treating neurological disorders, including epilepsy, Parkinson’s disease, and essential tremor disorder.

NMTC has a huge and growing opportunity here to improve people’s lives – more than 100 million Americans are impacted by some type of neurological disorder, and that figure is expected to grow as the population ages.

The firm has achieved a couple major milestones in the past few years, including successive FDA 510(k) clearances in 2019 and 2022 for newly developed electrode technology. They also submitted an application in June for 510(k) clearance for a system to improve neurological surgeries.

NMTC has engaged several big-name firms for strategic partnerships, including Mayo Clinic and Zimmer Biomet. In all, these catalysts (plus some recent price signals) could point to a potential impending reversal in NMTC’s share price.

Chart Source: CNBC. NMTC’s share price has fallen since the start of the year, but technicals indicate there could be a change on the horizon.

Technicals

It’s no secret that NMTC’s share price has been struggling for the past few years. But recent changes in NMTC’s technical indicators show that the downward momentum could be easing up – which might lead to a big trend reversal.

NMTC’s moving average figures are all bearish, which is no surprise considering the price data we’ve been seeing.

But crucially, momentum indicators like the Stochastic Oscillator and its Relative Strength variant are both bullish. And in the words of famous technician George Lane, “momentum always changes direction before price.”

Source: TipRanks

Medical technology companies like NMTC often see exaggerated swings in investor confidence, often resulting in extended downward trends like we’ve seen.

As the initial excitement of achieving medical breakthroughs gives way to the realization that pursuing FDA approval and commercial viability is a long process, investors can get overly pessimistic – but eventually, that pessimism runs out of steam, and a new bull phase can take shape.

On Friday, NMTC’s share price had already jumped more than a percentage point, which could be a sign this reversal is getting started. Solid insider and institutional sentiment lend credence to that view.

Sentiment

NMTC is a small stock with uncertain prospects, so it’s not covered by a ton of Wall Street analysts. Those that do cover the stock, though, seem to think that the downtrend we’ve seen is overblown.

Of the two analysts covering NMTC in the last 90 days, one assigned a Hold rating, while the other issued a Strong Buy. Their forecasts indicate a lot of upside potential, with the median price estimate being 2.10 over the next 12 months.

Souce: CNN Business

Although that indicates there’s some institutional support for the trend-reversal idea, a stronger sentiment indicator is the volume of insider buying that’s been occurring recently.

Over the past year, insiders have bought nearly double the number of shares they’ve sold. But over the past three months, that trend has accelerated, with insiders buying shares at six times the rate they’ve sold them. That could be a big sign that insiders are looking to get more skin in the game ahead of a jump in price.

Source: Nasdaq

Another good sign is that the company has been presenting at a number of recent conferences and events, including the upcoming ThinkEquity conference. Executives going out and meeting with new analysts and investors can indicate confidence in the firm’s near-term prospects.

One potential area of weakness for the stock is limited social media coverage and discussion – retail traders can often be a significant source of buying activity during trend reversals. But since this opportunity still seems to be flying under the radar, that might not be such a bad thing, letting informed traders pick up shares at a good price.

Fundamentals

Looking at the fundamentals of a firm like NMTC doesn’t always provide the most relevant information. For medical technology companies, success is often influenced far more by impending FDA approvals or major breakthroughs – not things you’d find looking at a balance sheet.

With that said, NMTC’s fundamentals do provide some support for the view that things are taking a positive turn.

Although the company is loss-making, it did have a strong gross profit margin for the last quarter. A gross profit of $244K on $629K of revenue indicates a healthy margin in the range of 38%. With that margin, NMTC should be able to cover its operating expenses by eventually scaling sales.

Moreover, NMTC’s liabilities don’t seem to be too concerning. Its largest liabilities included accounts payable and other accrued expenses, rather than notes or bonds.

If a company is unable to satisfy debt-holders, it might get pushed into bankruptcy before it can take off – but NMTC appears to have a sizable cushion in the near term, with current assets ahead of current liabilities as of last quarter.

Key Takeaways

All trading is risky, and you should do your own research to see if NMTC is the right opportunity for you. The prospects for medical technology companies, in fact, tend to be even more uncertain than usual.

But the time could be right for a reversal in NMTC’s fortunes, representing a potentially strong trading opportunity. Here are the key factors that could push the stock price higher soon:

• Technical indicators indicate a momentum reversal. Some technical indicators are weak, representing the firm’s poor performance over the past few years. But momentum-based figures are highlighting that the stock could be oversold and ready for a change in trend.

• Strong institutional and insider sentiment. Of the two analysts covering NMTC, none are bearish. Wall Street price targets are well above the current share price, and there is one Strong Buy recommendation on the stock. Finally, insider buying activity has been solid over the past year and has picked up in the past few months.

• Growth prospects and stable fundamentals. NMTC’s recent application to the FDA for its newest developments and its growing ability to commercialize 510(k) cleared technology with solid profit margins are all good signs for the firm. As long as NMTC can make its current liquidity last, the business has a viable path to profitability and success.

That’s all for today, stay tuned to our next newsletter for more insights on popular stocks among retail traders.

Important disclosures, please read carefully.

Disclaimer: All material presented in this newsletter is not to be regarded as investment advice, but for general informational purposes only. You are solely responsible for making your own investment decisions. Owners of this newsletter, its representatives, its principals, its moderators, and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission or with any securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility. Reading and using this newsletter or using our content on the web/server, you are indicating your consent and agreement to our disclaimer.