The markets have been very volatile over the last few days thanks to the war in the Middle East and rising oil prices. Two stocks listed in Canada have bucked the downward trend, both rising significantly price on major news. Even with these sharp increases in price, we think they have fallen under the radar and justify much higher valuations based on the news that was announced. First, Monumental Energy Corp. (MNRG.V) (MNMRF) rose 129% on Thursday to close at $0.08 after successful initial production from an oil well in New Zealand. This news could not possibly be better timed given market dynamics. Second, Perimeter Medical Imaging AI, Inc. (PINK.V) (PYNKF) announced that its Claire AI became the first ever AI-enabled imaging device for breast cancer surgery to be approved by the FDA. The stock nearly doubled on Wednesday but pulled back to $0.53, making this an ideal entry point. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 125 followers so far on here as well as 1,039 followers on our ValueTrades blog. You can also follow us on X @StockTradePicks which has over 5,000 followers.
According to MNRG's news release, the well immediately flowed oil and gas, producing 580 barrels of crude oil within the first six hours of operation. It was temporarily shut in to bring additional tanker capacity to the site. Since production restarted, the Ngaere-1 workover well has produced approximately 3,000 barrels of crude oil to date, currently stabilizing at approximately 120 barrels of oil per day, without the benefit of additional stimulation and optimization activities.
MNRG has 79 million shares outstanding. At $0.08, that's still only a $6.3 million market cap. So this stock still has a lot of upside potential. One insider of the company agrees, as Maximilian Sali purchased additional shares on the open market immediately after the news was announced at $0.065:
Considering that he already owned over 4 million shares and still felt compelled to buy even more should be seen as a good sign.
PINK's FDA approval is a game changer. Claire is the first AI-enabled imaging device approved in the United States for intraoperative breast cancer margin assessment. The technology received Breakthrough Device designation from the FDA and is designed to enhance surgeons' ability to detect difficult-to-see cancer during breast-conserving surgery and potentially reduce the need for re-operations.
About 20% of all breast cancer surgeries need a repeat operation. That's because surgeons use a combination of physical examination, and in limited cases intraoperative pathology to assess margins before sending specimens to pathology for final evaluation. As a result, patients may wait up to a week or more to learn whether margins are clear or additional surgery is required. Claire is designed to identify areas of concern during surgery, helping surgeons determine whether to remove more tissue before completing the procedure.
We expect both of these stocks to continue to run with MNRG to at least $0.15 and PINK to at least $1.00 being reasonable near-term expectations.
Disclosure: We are long MNRG.V and PINK.V
