Clovis Oncology Inc (NASDAQ: CLVS)
Clovis Oncology is trading relatively low today after climbing yesterday. However, I’m not too concerned about the declines. As a matter of fact, I think what we’re seeing is very natural and will lead to more upward movement. Today, we’ll discuss the news that caused the company’s stock to climb yesterday, what we’re seeing in the market today and why I’m not concerned about the decline, and what we can expect to see moving forward.
The News That Caused Clovis Oncology To Climb Yesterday
Yesterday, Clovis Oncology climbed following an after hours announcement on Wednesday that it will give two oral presentations at the upcoming 2015 ASCO annual meeting. The presentations that will be given will focus on Rociletinib and Rucaparib. As a result of the announcement, the stock climbed; gaining 16.7% in the trading session.
What We’re Seeing From CLVS Today
Unfortunately CLVS isn’t having a great day in the market; and the declines are proving to be concerning for some investors. Nonetheless, I’m not concerned at all. Currently (11:35), the stock is trading at $94.17 per share after a loss of 6.21% so far today.
Why I’m not concerned about today’s declines…
While today’s declines may be concerning to some investors, I’ve got to admit, I’m not concerned at all. As a matter of fact, I see this decline as natural market movement. I’ve mentioned this several times in the past. Price movements in the market happen through a series of overreactions. While there was good reason for yesterday’s climb, there wasn’t good reason for the stock to climb by nearly 17% in a single day…much of that was investor excitement. So, as we generally see in these cases, the stock has started a correction today. However, I don’t think it’s going down much further. As a matter of fact, I’d be pretty surprised to see losses fall to 7% or greater today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see great things from CLVS in both the short term and long term outlooks. Here’s how I see it…
- Short Term – In the short term, I’m expecting to see a bit of a recovery from today’s correction. As we tend to see in these situations, there’s a large climb, followed by a correction, followed by either another breakout like climb or sustainable growth. No matter which it is, we’re likely to see more upward movement in the short run for this one.
- Long Term – In the long run, I’m also expecting to see great things. The reality is that Clovis Oncology is a great company with an incredible pipeline, and management that’s likely to follow through. All in all, it seems as though the stars are aligning just right for this stock; making today’s declines a great buying opportunity for future gains!
What Do You Think?
Where do you think CLVS is headed and why? Let us know in the comments below!