• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Weighing the Risk-Reward in Turning Point Therapeutics

What does it mean when a stock is called very speculative?
By BRUCE KAMICH
Nov 19, 2019 | 12:24 PM EST
Stocks quotes in this article: TPTX

During the Lightning Round segment of the Mad Money program callers get a chance to ask Jim Cramer about companies they are interested in. On Monday night one caller asked about Turning Point Therapeutics Inc. (TPTX) . "This is a very speculative company and you need to do your homework," said Cramer.

TPTX is a clinical-stage biopharmaceutical company that designs and develops small molecule, targeted oncology therapies. You may need an advanced degree to understand their work so let's take a shortcut and look at the charts and indicators.  

In this daily Japanese candlestick chart of TPTX, below, we can see a wide-swinging sideways trading pattern from late May. Prices rallied from June to the end of August and then gave back all those gains from early September to the middle of October. TPTX rebased in October and then rallied this month. Prices are above the rising 20-day and rising 50-day moving average lines.

The daily On-Balance-Volume (OBV) line has been very strong during November and is close to making a new high for the year -- well ahead of the price action. The Moving Average Convergence Divergence (MACD) is in a bullish mode above the zero line.  

 
In this Point and Figure chart of TPTX, below, we can see that prices reached and exceeded a $44/$45 price target. More gains are possible but a period of consolidation would normally be expected at this point. 
 

Bottom-line strategy: What does it mean when a stock is called very speculative? To me it means wider up and down swings. By itself big swings are not terrible (if you are on the right side of them) but it typically means risking more as far as stops go. I would pass on TPTX at this juncture as a trade would probably mean too much risk.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Healthcare | Mad Money

More from Stocks

The Best Trading Advice I've Ever Given

James "Rev Shark" DePorre
Dec 7, 2019 10:00 AM EST

The benefits of keeping your accounts as close to highs as possible are obvious but how do we actually do this?

Jobs and Sentiment Provide Solid Backbeat for Next Week's 'Dance'

James "Rev Shark" DePorre
Dec 6, 2019 4:37 PM EST

In one week we should know whether the Dec. 15 tariffs will increase as planned.

As Samsung and Others Push the Envelope on Camera Tech, Chip Suppliers Benefit

Eric Jhonsa
Dec 6, 2019 4:31 PM EST

Samsung's Galaxy S11 will reportedly have a very powerful rear-camera system. And rivals aren't standing still, either.

A Growing Dividend Stock With a Sweet 3.3% Yield

Bob Ciura
Dec 6, 2019 3:19 PM EST

Investors typically look to food stocks for stable profits and reliable dividends year in and year out.

Here Are 2 Fantastic Looking Charts

Timothy Collins
Dec 6, 2019 2:05 PM EST

Qorvo topped my scans and all cylinders are firing on Freshpet.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:06 PM EST CAROLYN BORODEN

    MRK and LVS Targets Coming Up

    View Chart » View in New Window »  LVS View C...
  • 12:01 PM EST BOB LANG

    Rolling up Apple

    just the other day we added some apple calls on th...
  • 12:24 PM EST GARY BERMAN

    Fibocall: The SPX-Cash Long-Term View

    You will hear from many analysts on TV screaming t...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login