Delcath Systems (DCTH) Stock: No News Isn’t Necessarily Bad News

Delcath Systems, Inc. (NASDAQ: DCTH) isn’t having the best of days in the market today. In fact, the stock is down, causing Trade Ideas to alert us to the losses. So, what’s the deal? Well, it all has to do with news, or lack thereof. We’ll get into that in a minute. At the moment (11:57), DCTH is trading at $0.17 per share after a loss of $0.01 per share (3.50%) thus far today.

DCTH Hasn’t Released News Recently

Delcath Systems is one of those companies that generally releases news quite regularly. In fact, it’s overwhelmingly rare to go more than a few weeks with silence. However, in recent weeks, we have heard nothing by way of updates from DCTH. So, it’s no surprise that as I strolled StockTwits, Twitter, and various message boards, I’ve seen various posts talking about the lack of news, and the idea that this lack of news was concerning.

Well my friends, I beg to differ. While it is nice to have management consistently putting news out about their company, there are going to be quiet periods, no matter how proactive the company is. At the end of the day, before big news comes out, there’s generally a quiet period where investors don’t hear a peep out of the company.  That’s OK, that’s all part of the investing game, my friends.

Could There Be Big News Around The Corner?

The truth is that DCTH hasn’t been completely quiet. In fact, the company released an amended 8K today, but that was nothing new. The amendment was in a disclosure and the news surrounding the 8K was already known. So, could there be big news coming soon? In my opinion, you can bet your bottom dollar on it!

At the moment, Delcath Systems is working on 2 Phase 3 clinical trials. The first of these trials surrounds their Melphalan/HDS treatment and the second surrounds the percutaneous hepatic perfusion option of treatment for patients with intraheptic cholangiocarcinoma. Considering the fact that both of these trials surround treatments with overwhelmingly positive early-stage results, it only makes sense that the results from these trials will likely be overwhelmingly positive as well.

Think About It From The Company’s Perspective

The truth is we all know that DCTH is all about getting their news out there. In fact, it actually seems as though they enjoy communicating with investors… shouldn’t all companies? So, when we put ourselves in their shoes with regard to lack of news releases, it’s clear that something is happening. Why would they go quiet? Well, it’s likely because there is some big clinical news that will soon be released! Chances are that this quiet period is as painful to the company’s management as it is to their investors.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on DCTH. After all, we are impressed with the CHEMOSAT product that’s already been approved in Europe and excited to see the results from the trials that are already ongoing. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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