How to play Marrone Bio Innovations Inc. (NASDAQ:MBII) fairly?

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Marrone Bio Innovations Inc. develops environmentally safe bio-based products. The Company specializes in the discovery, development, and marketing of natural products for weed, pest, water resource, and plant disease management. It offers crop protection products for conventional and organic crop production, including herbicides for weed control, fungicides for plant disease control, nematicides for parasitic roundworm control, insecticides for insect and mite killers and plant growth regulators that growers use to increase crop yields, enhance plant health, manage pest resistance, and reduce chemical residues. Marrone Bio Innovations Inc. is headquartered in Davis, California.

Marrone Bio Innovations, Inc. (NASDAQ:MBII) has been in the news for all the right reasons. Recently, Marrone Bio Innovations, Inc. (NASDAQ:MBII) announced that the closing of its previously announced underwritten public offering of registered shares of its common stock for gross proceeds of approximately $9.2 million, which includes the full exercise of the underwriters’ over-allotment option to purchase additional shares. A total of 6,571,429 shares were sold in the offering at a price to the public of $1.40 per share. The net proceeds are expected to be approximately $8.2 million, after deducting underwriting discounts, commissions, and estimated offering expenses payable by the Company.

The Barchart Technical Opinion rating is a 88% Sell with a Weakening short term outlook on maintaining the current direction. Longer term, the trend strength is Strong. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). Currently, the 5 day EMA 1.74 is lower than the last trade price suggesting a short term bullish pattern building up. Long term, the 50 day EMA 1.91 is higher than current trading price depicting a bearish pattern..

Marrone Bio Innovations, Inc. (NASDAQ:MBII) is all set to announce its earnings on Mar 29/a. As per Zack’s analyst ratings, Marrone Bio Innovations, Inc. (NASDAQ:MBII) currently has an average brokerage rating of 3. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:MBII) is $2.666 with a high of $3.5 and a low of $2.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 40.81 suggesting a bearish price action.

As such, while we believe Marrone Bio Innovations, Inc. (NASDAQ:MBII) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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