Looking in the biotech space today, we’re seeing quite a bit of red. Unfortunately, the market is simply in a bearish mood today. With that said, there are a few stocks that have fallen a bit further than the rest. Here are today’s biggest losers and biotech and what we can expect to see from them moving forward…
CytRx Corporation Falls On Public Offering Discount
CytRx Corporation (NASDAQ: CYTR)
CytRx Corporation announced recently the existence of an underwrite public offering. Today, the big news came when the price came out. CYTR is offering more than 9 million shares of common stock at an offering price of $2.75 per share with a goal to gross approximately $25 million. Considering that at yesterday’s close, the stock was valued at $3.80 per share, that is one heck of a premium. As a result, the stock is trading on incredibly high volume today and the value has fallen dramatically. However, digging through Stock Twits, I’ve found that there is an overwhelmingly bullish sentiment surrounding the stock at the moment. Also, at the current price (Hovering around $2.80 per share), the stock is trading at a great discount. With that said, I’m expecting to see a recovery relatively soon.
EnteroMedics Is Down Following A Price Target Cut
EnteroMedics Inc (NASDAQ: ETRM)
On Monday morning, Craig Hallum issued a research note looking into EnteroMedics Inc. In the note, the stock’s price target was dramatically decreased; set at $2.00 and down more than 60%. As a result, investors took note; sending the stock down dramatically yesterday. Today, those declines continue. Currently (1:36), ETRM is trading at $0.34 per share after a loss of 6.85% so far today. Unfortunately, I don’t have the bullish opinion about ETRM that I have about CYTR. The reality is that ETRM has declined nearly 70% over the last 200 days; far underperforming compared to other options.
Genetic Technologies Falls From Highs
Genetic Technologies Limited (ADR) (NASDAQ: GENE)
Finally, we have Genetic Technologies; a stock that from the opening on Friday to the closing on Monday had grown by around 40%. However, today, we’re seeing declines. Currently (1:39), GENE is trading at $3.42 per share after a loss of 7.92% so far today. However, I’m not too concerned about today’s declines. As I’ve said time and time again, it’s important to remember that price movements in the market happen through a series of overreactions. Generally, after we see massive gains on a stock, we tend to see a correction; bringing the price down to a more realistic growth trend. In this particular case, if we compare today’s price to what we saw at the close on Thursday, the stock is still up by around 30%. In my opinion, investors shouldn’t fret about today’s declines. Instead, they should be looked at as a strong entrance opportunity.
Do You Know Of Any Others?
Do you know of any other big losers in biotech today? If so, let us know in the comments below!