Fulcrum Therapeutics: A Short Squeeze and a Gap Fill
Fulcrum Therapeutics, Inc. (FULC) makes an excellent short squeeze and gap fill candidate. It shot up 39% on Tuesday after the FDA ended a clinical hold on its sickle-cell disease candidate FTX-6058. The stock dropped from $12.89 to $5.66 on February 24th after the FDA placed the hold on it, so it would make sense that the stock reverses most of those losses now that the hold has ended. Right before the hold, the company raised $125 million at $13 per share. That left the company with about $280 million in cash and marketable securities on its books with marginal liabilities, or about $4.50 in cash per share. Even with the hold being lifted, it's trading at just above its cash value. So it has fundamental value as well as being a good technical trade. Here is where things get interesting. The stock has topped out at around $6.40 over the past couple of days. On February 24th - the day it dropped from $12.89 close on the previous day - it hit a high of $6.49. Above that level...