The bargain-basement shoppers are never in short supply, and neither is their prey. Even in the midst of a blazing-hot summer, a 100-point down day on the Dow reverse in the last 30 minutes and became a 40-point down day.
A stroll through message boards inevitably yields a sidewalk salesman or two, carnival barkers extolling the virtues of their elixirs. Two days ago, you could find a pumper or two of Northwest Biotherapeutics on forums not devoted to NWBO.OB. True, the Co is the first to market with an immunotherapy treatment (for brain cancer) thanks to limited approval in Switzerland.
However, the limitations and the lack of clarity in terms of Northwest Bio's bottom line as a result of the approval are a mystery. So, the stock has fallen from $7.33 to a close of $3.15 today. That includes double-digit percentage drops in the past three sessions.
[Ed: The Co has stated that authorization for non-commercial use has granted in Switzerland, but that it would apply for marketing and commercialization of its treatment there by the end of the year.]
Six of the past seven sessions were down, and the most recent days are marked by lower volume since 3.9 million shares traded on NWBO's big day on July 9. With a float of only 4.17 million shares, it takes very little to boost or boot this stock, which is why today's volume of 508,000 shares brought NWBO down another 12 percent.
Even a press release from the Co denying any selloff by shareholders Toucan Capital or Toucan Partners hasn't stopped the slide.
Buyer beware. NWBO closed at $2.30 in the session prior to the Swiss news and established no real level of support beyond that day. Finding that floor is a gut-churning experience for Northwest Bio's longs.
Dendreon longs know the churn well. The stock dropped 12 cents (1.6 percent) to $7.41 today, With options expiry looming, DNDN has not had an up day since July 10. The visible support level has been $6.50. DNDN's last stock slump came between June 20-26, when it bottomed out at $6.51.
That was followed by five up days in the ensuing six on healthy volume. It's tempting, though, for longs to unload shares here out of sheer frustration. Maybe casting off a portion of shares would be a healthy compromise, at least for peace of mind. The SEC's "informal inquiry" into the Provenge clinical trials has yet to reveal any news positive or negative. That's enough to unnerve most investors, but with Dendreon, only the hardiest of souls remain. Hardy or stubborn; I'm more of the latter, and I'm still holding my shares.
Hoku Scientific was up in six out of eight sessions, and hit an intra-day high of $14.55 on Monday. However, Monday was the start of a tumble for the stock, which closed at $12.51 today. In the same way HOKU bolted to a new high last week — descending volume on Wednesday (11.6 million shares), Thursday (7.1 million) and Friday (4.6 million) — this week's decline is relatively similar.Volume has dropped each day: Monday, 4.7 million shares; Tuesday, 2.9 million; today, 2.5 million. Those are still hefty numbers considering HOKU's float of 11 million shares. This is the first string of three down days for the stock since Hoku announced its first polysilicon contract on June 13. Bears are have been feeding on the glut of optimism, but the decline in volume indicates that the stock is ready to level out sometime soon.
Skins Inc. is the tiniest of the companies I've explored recently. The Co has tantalized footwear fans with a slick marketing campaign, but angered investors by delaying the release of its product twice in the past year. Still, the stock keeps bouncing back up. SKNN.OB was up 11 cents to $1.83 today to end a four-session skid. However, volume was its lowest in eight trading days. Momentum could resume as a major shoe show nears (July 30). Skins will be there. Enter at your own risk.
Disclaimer: Pupule Paul is long HOKU and DNDN.
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