Hello Dear Traders,
I'd like to present AEZS (Aeterna), a biopharma company focusing on the endo and oncology sector. AEZS was a slow moving / no action ticker until 10/31/2018 when it announced a licensing partnership between Novo Nordisk and SBBP wherein those companies will pay royalties to AEZS to utilize their product, Macrilen, focused on treating adult growth hormone deficiency. Additionally, on 11/16/2018 we learned Macrilen received a positive opinion from CHMP (the European Medical Advisory Board) to market this drug.
On 10/31/2018 AEZS experienced a whopping 60% increase in share price. On 11/16/2018 the share price continued to climb. What's bothersome, however, is, the share price has not gone down. Despite the positive news, there is no final decision on the OK for use of this drug in Europe. On top of this, when we observe AEZS' fundamentals the situation gets even gloomier. Producing a net loss quarter over quarter with little consistency in positive quarters.
When we look at this stock's technicals we see the positive news reflected in the chart, but at what point do we call this? There's a lot of HOPE in this chart. The sales for this product are all potential based, the EPS is negative, and the final decision on their lead candid is still months away.
When I look at indicators I find the all indicators above 90 except RSI which is approaching 80.
The charts I attached are daily candles. Net income and cash flow statement reflect annual figures with the leftmost value occurring 12/2017 in descending order, 2016, 2015, etc.
When will this stock go back to reflecting is TRUE value of somewhere between $1 and $1.90?
I'd like to present AEZS (Aeterna), a biopharma company focusing on the endo and oncology sector. AEZS was a slow moving / no action ticker until 10/31/2018 when it announced a licensing partnership between Novo Nordisk and SBBP wherein those companies will pay royalties to AEZS to utilize their product, Macrilen, focused on treating adult growth hormone deficiency. Additionally, on 11/16/2018 we learned Macrilen received a positive opinion from CHMP (the European Medical Advisory Board) to market this drug.
On 10/31/2018 AEZS experienced a whopping 60% increase in share price. On 11/16/2018 the share price continued to climb. What's bothersome, however, is, the share price has not gone down. Despite the positive news, there is no final decision on the OK for use of this drug in Europe. On top of this, when we observe AEZS' fundamentals the situation gets even gloomier. Producing a net loss quarter over quarter with little consistency in positive quarters.
When we look at this stock's technicals we see the positive news reflected in the chart, but at what point do we call this? There's a lot of HOPE in this chart. The sales for this product are all potential based, the EPS is negative, and the final decision on their lead candid is still months away.
When I look at indicators I find the all indicators above 90 except RSI which is approaching 80.
The charts I attached are daily candles. Net income and cash flow statement reflect annual figures with the leftmost value occurring 12/2017 in descending order, 2016, 2015, etc.
When will this stock go back to reflecting is TRUE value of somewhere between $1 and $1.90?
