ACADIA Pharmaceuticals Inc (NASDAQ: ACAD), Mad Catz Interactive Inc (AMEX: MCZ), and Wizzard Software Corporation (AMEX: WZE) have all posted significant gains lately. Is the momentum there to continue? I think so.

Don’t Let a Little Normal Profit Taking Put You Off. 

Let’s start with a look at Mad Catz Interactive which literally fell off a cliff in mid June; dropping from $1.80 to near $1.30, a loss of 27%. But shareholder support came rushing in at that bottom and has pushed the stock back into the $1.38 range, a gain of over 6% in a few weeks. The valuation rehabilitation has been slow and steady, a good sign of a momentum play, and the games and toy maker is setting an up-trend signal for new buyers to get in on. There aren’t many short sellers of this stock and it does have positive, double digit sales and EPS projections.

ACADIA Pharmaceuticals is staging its own ‘bounce back’ having slid down from $3 at the end of April to $1.50 in mid June. The bio-pharma stock has steadily climbed out of the hole since then and is currently trading in the $1.83, a three week gain of 22%. There are virtually no short sellers of this stock to pull down a momentum swing and what I like about this stock is that it has an “Important” drug dealing with Parkinson’s disease in Phase III clinical trials. By Important I mean that; 1) it will it treat a global affliction as no other treatment currently does, and 2) it will have a big global market to buy its ‘much needed’ drug.

And on the subject of momentum swings; Upward, Wizzard Software, the speech recognition and speech to text innovator was trading in the $0.15 range at the beginning of June and is currently trading in the $0.21 range, a gain of 40% in a month. For myself, I think this stock is undervalued. Remember in the Star Trek series when Spock would enter a room and say, “Computer…” and then give it a command? I think every machine and gadget is headed in that direction and speech recognition is the key. The stock has virtually no short sellers to apply downward pressure and the Company has positive, double digit sales and EPS projections.

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.