On Watch 09/06/17 from Dante

 

Make sure you tune into the Webinar tomorrow with Alex and myself, will be a lot of fun and we’ll have some good discussion for you guys. If you didn’t already, you can sign up here.

 

INSM: This one was pretty nutso today…I don’t quite understand how a rare disease drug with positive p3 data ends up running 120%, that seems a bit excessive to me, but…it is what it is. The market’s never wrong, right? I actually had a nice short on this early in the day, and then from lunch time on it was just an annoying grinder. It also had I think 3 separate intraday PT upgrades with a street high in the low 40s, 42 or 43 I believe it was. This is a pre-revenue company with roughly ~60-70M in cash (at this point I’m assuming, it was 91M as of 6/30 and they have a burn rate of about 37M/quarter) so they’re already low on cash with barely enough to get them through the end of this year & beginning of next, and then the stock runs 120%….it’s about as obvious as it gets that they were going to use this opportunity to raise, which they did after the bell. Now we wait on the pricing. The way these pharmas have been going lately, is they’ve all been getting great pricing & heading higher. So I’m guessing they end up pricing around $25-26 and we probably head higher. Again, I can’t quite justify this move in my head, but the price action is saying otherwise and the market is never wrong, so we have to listen to it for now. I’m bullish on dips & expect a strong pricing soon.

MSDI: oink oink. Will be watching for an open push back on 1 or a re-test of today’s HOD 1.08s for a fail there & more fade. Should be heading right back where it came from just like the last pop two weeks ago.

PULM: Nice grinder & little more shove a/h today…I don’t think this one will get too crazy based on the fact the float is not exactly tiny at 13M, but you never know – if they bring the volume anything is possible. There’s really no resistance on the daily chart until the 3 area, I guess a bit at 2.70 too but none of it is very convincing. I’d like to see what kind of volume we’re dealing with premarket on this one to get a better feel of where I think it’ll go, for right now I’m going to say a push on 3 would be great & wait for backside confirm then jump in short.

WTW: This thing is finally coming in. Watching all pops for failed follow thru & a short.

 

If you’re not an IU member and would like to become one, there’s still a sale going on here. Or if you’d prefer a shorter time commitment to see if you like it, you can go monthly as well here. Shoot me a PM anytime in chat (DGTrading101 is my IU handle) and I’m happy to discuss trade ideas with you.

See you out there!

– D