Biocept Inc [NASDAQ: BIOC] has been in the red for quite a while now. Yesterday, the stock sunk further into negative territory and closed the day lower by 10%. However, this could be a good time to buy into this stock. Besides the fact that it is always best to buy when the market is bleeding, there are several fundamental factors that support this stock’s upside momentum.
Yesterday, the company announced that its CEO Michael Nail would be presenting at the H.C Wainwright 22nd Annual Global Investment Conference that will take place on 14th September at 3:30 p.m. The anticipation around what he is likely to say at the conference is likely to drive volumes into this stock over the next few days. This is likely to trigger a bullish reversal, which would trigger a rally if he makes some new and exciting announcements during the conference. Signals of such price action are evident in BIOC’s price action in pre-market trading
Another factor likely to trigger and sustain a reversal by this stock is the company’s announcement two days ago that it had executed an in-network to provider agreement with Health Net Federal Services. The agreement extends coverage for the company’s Biopsy Oncology platform to the TRICARE West regional network. This is a big deal as TriWest offers healthcare services to about 3 million people, mainly made up of U.S military men and their families.
Commenting on the deal, BIOC CEO Michael Nail stated that he was honored that the company was now a provider for TriWest and that it would be in a position to use the platform to serve the needs of U.S service members and their families. He added that the company’s Target Selector™ platform has what it takes to improve patient outcomes, by helping physicians access personalized treatment plans for their patients much more quickly.
The CEO further stated that part of the company’s strategic objective was to expand its managed care agreements. He concluded by stating that the company’s liquid biopsy platform was available to millions of Americans and that extending the same to the military was a plus.
This agreement essentially creates an incremental revenue stream for Biocept. This will drive up the company’s intrinsic value, and the same will reflect in its price action. This further adds to the case for a major reversal for this stock in the near-term.
About Biocept Inc
Biocept Inc is a molecular oncology diagnostics organization. It is s based in San Diego, California.