The wild afterhours and premarket trading with MGEN
I came across NASDAQ:MGEN on July 06 and decided to take a small 500 shares at $1.03. Followed by another 533 shares at $0.92 on July 21 during pre-market. So, I had a total of 1033 shares with an average price of $0.9776767. When this got filled, it occurred to me that the after hours (AH)trading pattern is a bit bizarre because that was almost 10% difference. I started paying attention to the AH action since then and realized that the best time to exit is during an AH plays. AH is often dubbed as "amateur hour" that can be used correctly for gains.
For e.g. MGEN went up to $1.40+ in pre-market on July 20, 2020 because Brookline set their price target of $6.00. At this point, I nearly bang my head on the wall because I totally missed my exit target of $1.40. Fortunately, someone from Stocktwits mentioned that MGEN received an Oprhan drug designation on July 23, 2020 and MGEN did not release any PR yet. I placed a sell order of $1.40 again but with a bit of luck. I had some delays logging in to Interactive Brokers that helped me gain a little bit more percentages and finally exited at $1.51. So, I made 50%+ gain in a few weeks.
Fundamentals:
Float: 46.88M (low float!)
Cash: $36.1 million (March 31, 2020)
Cash runway: Q3 2021
Last offering: February 2020 for $15.0 million
Pipeline:
- SOLAR trial, likely delayed in Q3 2020 because of COVID19. Patients need to visit the clinical trial sites to be able to collect primary endpoint patient data.
- Cobomarsen (MRG-106) in P1, Q3 in 2020 but also likely delayed because of COVID19.
- MRG-299 (pre-clinical) for Pathologic Fibrosis is anticipated in 2nd Half (2H) of 2020.
- Remlarsen (MRG-201) in P2 for Keloids in 2H of 2020 but also delayed due to COVID19.
Investment thesis:
IMHO, it is best to wait until the healthy pullback at the major trend line I've draw (big white line) or somewhere around below the EMA 20 of bollinger band. I wouldn't recommend to buy a big lot because based on the latest updates of their pipeline, I do not expect that we will get any updates on time. However, I would definitely recommend to swing this stock during after hours :)
Please note that the MACD is showing some signs of bullish signal because the MACD is crossed the signal line, then the ADX/DI is also showing that the current uptrend is strong. However, the StockRSI is indicating that it is in overbought levels and it is approaching a pullback. Especially, the share price (SP) hovered above the bollinger bands.
Summary:
Entry: wait till the SP is below the EMA 20
Keep in mind: Pipelines are likely delayed due to COVID19.
Keep in mind: AH plays works well if you've entered correctly.
Keep in mind: Don't be greedy, swing at "realistic" percentages. IMHO, its around 25%-50%
As always, keep your indicators simple, stick to your plan, and be patient. :)
For e.g. MGEN went up to $1.40+ in pre-market on July 20, 2020 because Brookline set their price target of $6.00. At this point, I nearly bang my head on the wall because I totally missed my exit target of $1.40. Fortunately, someone from Stocktwits mentioned that MGEN received an Oprhan drug designation on July 23, 2020 and MGEN did not release any PR yet. I placed a sell order of $1.40 again but with a bit of luck. I had some delays logging in to Interactive Brokers that helped me gain a little bit more percentages and finally exited at $1.51. So, I made 50%+ gain in a few weeks.
Fundamentals:
Float: 46.88M (low float!)
Cash: $36.1 million (March 31, 2020)
Cash runway: Q3 2021
Last offering: February 2020 for $15.0 million
Pipeline:
- SOLAR trial, likely delayed in Q3 2020 because of COVID19. Patients need to visit the clinical trial sites to be able to collect primary endpoint patient data.
- Cobomarsen (MRG-106) in P1, Q3 in 2020 but also likely delayed because of COVID19.
- MRG-299 (pre-clinical) for Pathologic Fibrosis is anticipated in 2nd Half (2H) of 2020.
- Remlarsen (MRG-201) in P2 for Keloids in 2H of 2020 but also delayed due to COVID19.
Investment thesis:
IMHO, it is best to wait until the healthy pullback at the major trend line I've draw (big white line) or somewhere around below the EMA 20 of bollinger band. I wouldn't recommend to buy a big lot because based on the latest updates of their pipeline, I do not expect that we will get any updates on time. However, I would definitely recommend to swing this stock during after hours :)
Please note that the MACD is showing some signs of bullish signal because the MACD is crossed the signal line, then the ADX/DI is also showing that the current uptrend is strong. However, the StockRSI is indicating that it is in overbought levels and it is approaching a pullback. Especially, the share price (SP) hovered above the bollinger bands.
Summary:
Entry: wait till the SP is below the EMA 20
Keep in mind: Pipelines are likely delayed due to COVID19.
Keep in mind: AH plays works well if you've entered correctly.
Keep in mind: Don't be greedy, swing at "realistic" percentages. IMHO, its around 25%-50%
As always, keep your indicators simple, stick to your plan, and be patient. :)
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