10 Candidates for Bottom Fishing as We Await a Visit From Santa
Here's a shopping list of stocks that have sold off substantially and have a good chance of participating in a rally in the next week or so.
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After the carnage the market suffered Wednesday, investors are shell-shocked on Thursday morning and staying cautious. Minor bounce action was sold by stuck bulls, and there is limited interest in bottom fishing as there has not been much time for new support levels to form.
It is too early for a snapback right now, but if the market doesn’t start bouncing better very quickly, the mood will turn ugly, and that will be a better setup for a washout and a snapback.
My main job right now is working on a shopping list of stocks that have sold off substantially and are good candidates for bouncing. I’m searching for some new names, but here are 10 stocks I think have a good chance of participating in a Santa Claus rally in the next week or so.
ADMA Biologics ADMA was chugging along very nicely until a change in auditors occurred in October. The company now has a new major auditing firm in place, but the stock has been choppy and sloppy. It is close to filling a gap down to the $17 level, and it is still looking at 80% revenue growth.
Core Scientific CORZ has been a leader in shifting Bitcoin mining facilities to high-powered computing centers. The stock broke the 50-day moving average and has some major support at $13. Continued strength in Bitcoin should help.
Delcath Systems DCTH is one of many thinly traded biotechnology stocks I follow. It recently spiked to a new high but has now pulled back to the 50-day on light volume. I’m looking for it to build a new base around $11.
Dell Technologies DELL is an unappreciated big-cap play on AI. I’ll have a more detailed write-up on it soon, but it’s a top pick of several major brokerage firms and has an attractive valuation compared to its competitors. Key support is around $110.
Lantheus Holdings LNTH sold off very hard in November but managed to hit overhead resistance at the 50-day. It is now looking for new support around $89 or so. Goldman Sachs initiated it as a new buy on December 18 and gave it a $143 target.
Mereo BioPharma MREO has been very volatile as it awaits key data and a potential partnership deal. Longer-term holders are impatient, and the stock was sold along with the entire biotechnology sector. It looks like it has some good support around $3.25. This is one of my bigger current trading positions.
Nvidia NVDA has been a Magnificent Seven laggard, but it looks like it will benefit from rotational action. Valuation is very solid, and institutional buyers looking for better values will likely provide support. I added some Thursday.
Rocket Pharmaceutical RCKT has a very interesting story but horrible technical action. Analysts like the stock but it is hitting new lows and under tax-loss selling pressure. I’ll have a full write-up on this name soon, as it is one of my favorite plays in 2025
Sensus Healthcare SRTS is another very thinly traded name with very good numbers. The company should report very strong fourth-quarter sales, but in a bad market, it doesn’t have much support. I view this as a good value play, but it may languish while it awaits news flow.
Xeris Biopharma XERS continues to be one of my favorite names due to solid sales from three key products and the potential for substantial new partnerships and product development. I’ll have more on this one in the near future.
I also want to note that I’m still holding Humacyte HUMA, but the stock is languishing as it awaits news from the FDA. I’m not doing anything with it right now.
I have a lot of work to do to find additional names. If you have any good ideas you’d like to share, please share them in the comments section.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider several of the names mentioned to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
At the time of publication, Rev Shark was long ADMA, CORZ, DCTH, DELL, LNTH, MREO, NVDA, RCKT, SRTS, XERS and HUMA.
