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Weekly Stock Watch: Week Of July 9

Mannkind Corp (MNKD): Just weeks after making a push for the two dollar mark, Mannkind is now pushing three. Another two percent jump on Friday helped MNKD shares close the week at $2.75, a full buck above its closing price of a month ago, and some recent hype surrounding insider buys once again has investors interested in this stock.

One confidence boost came from the company's co-founder, Al Mann, who threw some more money the way of his company, but this move is to be expected as Mann already has about a billion dollars invested in the company. That's not to say, however, that his willingness to throw more money into the company is not a positive sign.

Mannkind made a nice intriguing play earlier this year and late last year when the stock's high short interest helped it set new 52-week lows, but keep in mind as the share price increases, so does the immediate-term risk. The risk has little to do with Afrezza, the company's Phase III candidate to hit the market as an inhaled insulin alternative to the needle for diabetics, but increases with the speculation that a dilutive financing event may take place later this year.

Reports have it that Mannkind has enough cash on hand to last through the fourth quarter.

Recent history suggests that MNKD rallies are followed by sharp declines after the shorts jump in on top of any run, but as the time draws nearer to the next Afrezza date with the FDA, the follow-on dips may not be as protracted as before.

Currently, Mannkind needs to complete additional trials testing the effectiveness of its next-generation inhaler, as requested by the FDA after the most recent denial.

http://seekingalpha.com/article/706891-weekly-stock-watch-week-of-july-9