Prima Biomed Sp ADR (NASDAQ: PBMD)
Prima Biomed has had a great week in the market. After releasing overwhelmingly positive data from a recent study, the stock nearly quadrupled in value on Wednesday. Unfortunately however, it ran into a big correction yesterday; losing a big percentage of the gains. So, yesterday, I wrote a post about why I wasn’t concerned about the declines. Low and behold, the stock is back up today. The big question now is, “Can it last?” So today, we’ll take a look at the study, why the stock fell yesterday, why it’s up today, and what we can expect to see from PBMD moving forward.
Prima Biomed Releases Positive Ovarian Cancer Data
Earlier this week, Prima Biomed released data from the Phase II trial of CAN-003 in the treatment of ovarian cancer. Through the study, the company was able to show clinically meaningful improvement with regard to survival rates in second remission ovarian cancer patients when compared to the current standard of care. With this being an incredible breakthrough, it only makes sense that the stock would climb; and that it did!
What We Saw From PBMD Yesterday
Unfortunately however, yesterday was a bit of a different story. As a matter of fact, by 11am, the stock had fallen by more than 30% and would continue on the declines for the rest of the day. However, I wasn’t concerned about the declines. In an article yesterday, I explained that the price movements in the market are a series of overreactions. So, after massive gains, it’s only natural to see a correction; bringing the value of the stock closer to where it should be. However, that doesn’t mean that it’s not going to grow moving forward. I’m actually expecting Prima Biomed to do just that.
What We Can Expect From PBMD Moving Forward
Moving forward, I’m expecting to see more positive news from the stock in both the short and long term outlooks. Here’s how I see it…
- Short Term – In the short term, the self fulfilling prophecy created by technical analysis is likely to reign supreme. With that being said, even with the growth today, we’re still in the middle of support and resistance lines that are getting closer and closer together. In most cases, this leads to a breakout; and in this particular case, I’m expecting the breakout to be in the positive direction.
- Long Term – In the long run, I’m expecting to see more of the same. When we talk about PBMD, we’re talking about a company that is fundamentally sound. With a strong focus on improving survival rates and quality of life in patients with cancer, great management, and clearly positive results thus far; I can only see growth in the long run.
What Do You Think?
Where do you think PBMD is headed and why? Let us know in the comments below!