Galena Biopharma Inc (NASDAQ: GALE)
Galena Biopharma is having an incredibly strong time in the market today. When I saw the gains, I had to do some digging. The only fundamental news had to do with recent votes. However, I did find some compelling data with regard to the stock’s RSI. Today, we’ll talk about the most recent news released, what’s going on with the RSI, what we’re seeing from the stock today, and what we can expect to see from GALE moving forward. So, let’s get right to it…
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GALE Releases The Results Of Its Annual Shareholder Meeting
On July 14th, Galena Biopharma held its annual shareholder meeting for the year 2016. At the meeting, there were five proposals that shareholders voted for or against. On July 18th, the tally of the votes was released. However, it seems as though we hadn’t seen a strong reaction in the market until today. Nonetheless, here are the results of the votes:
- Proposal 1: GALE shareholders voted to re-elect Sanford J. Hillsberg and to elect Mary Ann Gray, Ph.D., as Class III Directors to serve until the 2019 Annual Meeting of stockholders. The votes came in at 35,920,920 for, 4,072,385 against, and 26,919,427 for, 13,073,878 against respectively.
- Proposal 2: Shareholders also voted to approve an Amended and Restated Certified Incorporation to increase the number of shares of common stock, par value $0.0001 per share, authorized for issuance by 75,000,000 shares, bringing total shares to 350,000,000. The results of the vote came in at 91,183,457 for and 35,010,427 against.
- Proposal 3: GALE shareholders also approved the company’s 2016 incentive plan. The votes for this measure came in at 25,555,394 for and 12,859,627 against.
- Proposal 4: The fourth approved proposal was for the compensation of named executives disclosed in the company’s proxy statement. The votes for this measure came in at 24,198,230 for and 14,090,767 against.
- Proposal 5 – Finally, Galena Biopharma shareholders voted to appoint Moss Adams LLP as the company’s independent registered public accounting firm for the current fiscal year. This measure was approved with 118,814,739 votes for and 6,257,723 votes against.
Interesting RSI Data
While I was digging around to see what exactly was going on today, I found some very interesting data with regard to the RSI for GALE. RSI means Relative Strength Index, and it’s commonly used by traders when technically analyzing stocks.
The RSI compares the average of gains in days that closed up to the average of losses in days that closed down. When an RSI reads over 70, this means that the stock is overbought and will likely decline. Adversely, an RSI below 30 means that the stock is undervalued and will likely recover.
When it comes to the RSI reading for GALE, it comes out to 25.39. This is incredibly low and shows oversold conditions. However, the oversold conditions are largely caused by the fact that the company recently announced that it has discontinued a key clinical study. Nonetheless, a 25.39 RSI is very low.
What We’re Seeing From The Stock Today
Today is proving to be an incredibly strong day for Galena Biopharma. It seems as though investors have found the information from the most recent shareholder meeting or that they are looking at the low RSI. Nonetheless, we’re seeing gains. Currently (1:46), GALE is trading at $0.46 per share after a gain of $0.08 per share, or 20.97%, thus far today.
What We Can Expect To See Moving Forward
While the RSI on the stock suggests that it is oversold at the moment, I don’t necessarily think that’s the case. The truth is that GALE was going to see big declines on the discontinuation of the study. That’s why it’s important to pay attention to fundamental data too. At the end of the day, there’s quite a bit of uncertainty now that the PRESENT trial was discontinued. Until we hear news about what’s going to happen next, it would be incredibly risky to get involved in this one.
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What Do You Think?
Where do you think GALE is headed moving forward and why? Join the discussion at TalkTRENDZ!
[Image Courtesy of Wikipedia]