Ceres, Inc. (NASDAQ: CERE)
Ceres, Inc. (CERE), an agricultural biotechnology company announced yesterday a license agreement with KWS SAAT SE for Ceres’ Persephone bioinformatics technology. Persephone is a technology platform that allows researchers to store and access and explore DNA databases.
Ceres, Inc. VP of Genomic Technologies
“We look forward to working with researchers at KWS to demonstrate how Persephone can help deliver complex genomic information directly to its diverse product development groups,” said Tim Swaller, Ceres Vice President of Genomic Technologies. He continued on to say “Persephone’s capabilities and user experience is designed to allow more eyes on information that is often inaccessible today”. PR Newswire
CERE Technical Analysis
CERE gapped up in price yesterday to $1.12, up from the prior day’s close of $1.00, which is a 12% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was back on September 10th, when the stock closed at $1.13. Taking a look back a little further on the daily chart we can see that on August 11 the stock closed at $0.95 and reached highs of $4.80 during the next day of trading which is equivalent to a 405% move. The move was based on news that the company received a patent for its iCODE multi-gene development system. So we can see the company is capable of big moves in one day of trading. Over the past month, the stock has been in a tight consolidation period ranging between $1.10 and $1.20. With positive news and a long consolidation period this stock may be ripe for a significant pop. The stock does a have a low float of 5.24 million shares and is trading 4 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $1.25 meaning that it gave back $0.13 at the open equivalent to 10%. For trading purposes, my entry point would have been. $1.15 with an add on at the pre market high price of $1.25. My stop loss would have been $1.05 fearing anything below that and the stocks move up would have stalled.
Company Profile
Ceres, Inc., an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. The companys energy crops include sweet sorghum; high biomass sorghum for the generation of renewable electric power and the creation of cellulosic biofuels; switchgrass, a perennial grass; miscanthus, a tall perennial grass for use as an energy crop. Ceres, Inc. markets its seed products under the Blade brand. It also licenses its biotech traits and technology, including Persephone genome visualization software to other organizations. The company sells and distributes its seed products to ethanol mills, utilities, independent power producers, cellulosic biofuel companies, agri-industrial facilities, individual growers, and grower cooperatives. The company was founded in 1996 and is headquartered in Thousand Oaks, California. Yahoo Finance
