Weekly Pick: GLUE
Small cap biotech with large cap partnerships
GLUE scores at the top of small caps in my model this week. It’s a strong asymmetric setup with explosive float dynamics, strong partnerships, it’s in a post-earnings bull flag, and it’s my weekly pick.
Like every trader, I actively maintain a watch list. But I don’t post watch lists.
I only post what I trade.
Monte Rosa Therapeutics Inc ($GLUE)
Monte Rosa Therapeutics is a small-cap biotech company developing a new type of medicine called molecular glue degraders. These are small molecules that make the body’s natural protein-disposal system destroy harmful or disease-causing proteins that normal drugs can’t target. Their in-house discovery engine, QuEEN, uses AI, chemistry, and biology to design these glues for cancer and autoimmune diseases. In short, they’re trying to turn the cell’s own cleanup machinery into a precision drug tool to eliminate previously “undruggable” disease drivers.
They’ve also landed Novartis and Roche as development partners which gives them both credibility and runway. The Novartis deal alone was worth $120 million upfront and up to $5.7 billion in potential milestones to develop degraders for immune-related diseases. Roche’s collaboration covers oncology targets using the same technology, with milestone payments tied to clinical progress. Together, these deals validate Monte Rosa’s platform and help fund operations without endless dilution which is rare for a small-cap biotech.
Fundamentals and Ownership
Market cap $802M.
P/E 40.31
Strong balance sheet with $6/share in cash.
Insiders hold 41% of the float.
Institutions also heavily involved.
22% of the shares are borrowed short. This creates a very high squeeze potential in the context of so much of the float held by insiders and institutions who are stickier shareholders.
Technicals
Full bull structure above the EMA stack on all time frames.
The stock has been rising steadily since the latest Novartis partnership news on 9/15, and they reported earnings last week.
The stock is flagging at the 8EMA on the daily
Daily
Weekly
Monthly
Risks (every trade has them)
Any drug trial setback could crush the stock.
Low float can exaggerate rallies and drawdowns, and daily trading ranges have been wide.
Broad market volatility.
How I’m trading GLUE
I’m trading this one with shares only and I’m sizing down a bit from my normal full position size due to the volatility. Options spreads on GLUE are currently too wide to get a decent entry price.
I trade what I post.
Weekly Picks and mid-week Trade Notes for subscribers.
This isn’t an alert service, and I’m not your financial advisor.
Just sharing the trades I take. Putting it out in public keeps me disciplined.
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What is your full position size?
Hi NN. Nice post. Just been following you recently. What scans do you use to identify potential set up ?