It looks like Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) may be finally catching its groove after its dip in March which continued for much of the second quarter. On Thursday the developer of expanded autologous cell therapies for the treatment of patients with serious diseases and conditions took to the markets with a vengeance. The stock opened at 1.35 before sailing to a high of 1.74 on volume of 1.86M shares. The strong trading continued for much of the day and by the end of trading ESES closed up 29% to finish the day at 1.68.
The big close on Thursday was a major improvement on the 52-week low that ESES set when it reached 0.66. As a matter of fact, since hitting that low ESES has gained over 154%. Granted the stock is still trailing its 52-week high by 41% but coming from that far low, investors must surely be happy that the stock has started to make bullish headway as it looks to hit former highs.
As things stand ESES has a price target of 2.50, a figure which puts it in a very attractive position in terms of upside opportunity. This position is bolstered by an overall YTD performance which sees the stock up 75%. Investors fearful of a cool-off take their cues from a monstrous show of interest that has surfaced in recent weeks. Average volume of 208K has quite obviously given way to a new paradigm for the stock. It’s as if over the last 30 days only a handful of investors knew about ESES; now investors are kicking in the door as they try to catch the next breakout for a stock that hasn’t traded over 2.85 in the last 12 months. Investor optimism is more than just a pipe dream – all the trend movements are there to justify it. The DMA 50 is up 33%; if that isn’t short term confirmation of bullishness then it doesn’t exist.