STSI releases earnings today after the close but its not the earnings or revenues that matter, unless there are some huge upside surprises. The core of this opportunity is the potential disruptive nature of STSI’s products (Anatabloc and Anatabloc Face Cream). Throw in the likelihood of a significant lump sum settlement with big tobacco for patent infringement before year-end and what the stock does in response to today’s earnings will be meaningless (unless no matter what the earnings look like the stock gap’s up tomorrow).
Once again STSI is running up against strong resistance at the reversal trend line. With the daily reversal level at $4.67, any close above that level should be an excellent intermediate BUY SIGNAL. With so much news due out in the 3rd and 4th quarters of this year, I still like the January 2013 calls for the most bang for the buck, i.e strike prices of $3.00/$4.00/$5.00 in ascending order of aggressiveness. Buying STSI shares in lieu of options renders the time element, bane of most option traders, mute. A combination of options and shares may very well be the best way to take advantage of the potential for significant appreciation of STSI’s stock price.
In other words, there are three ways to bet on STSI’s future; near-term, intermediate term and long term, all good……….all excellent and all even better once STSI clears $4.67.