Are These Buying Opportunities? Ampio Pharmaceuticals Inc (AMPE) and RXi Pharmaceuticals Corp (RXII)
New York, NY – GDP INSIDER – 03/26/2015.
This article discusses two companies: Ampio Pharmaceuticals Inc (NYSEMKT:AMPE) and RXi Pharmaceuticals Corp (NASDAQ:RXII)
Ampio Pharmaceuticals Inc (NYSEMKT:AMPE) fell back yesterday with the stock dropping 13.36% or $1.15 to close at $7.46 with more than 1.398 million shares changing hands, compared to its three month average trading volume of 0.811 million. The developer of therapies to treat prevalent inflammatory conditions had been riding high of late, with the stock edging close to its 52 week high of $9.01 on Tuesday. The sell off began on no major news, but Ampio Pharmaceuticals Inc’s RSI has been well into the seventies for most of the month, indicating that the stock was probably overvalued. Investors finally took the opportunity to take their profits as the stock was not looking to break through its $8.80 resistance level. With a bearish MACD crossover looking likely, the stock could fall further still, but should be approaching its support level at about $7.40 making it a hold and potential buy.
RXi Pharmaceuticals Corp (NASDAQ:RXII) continued to fall yesterday with the stock losing an additional 12.22% or $0.11 to close at $0.79 on heavy trading of 2.360 million shares, compared to its three month average trading volume of 0.469 million shares. RXi Pharmaceuticals Corp has not been doing particularly well in the current year, with the stock trading about 30% under the S&P 500. With this week’s losses, the stock has now lost 50.61% so far this year, compared to the S&P 500 which has gained 0.10% over the same period. The biotechnology company focused on discovering, developing and distributing RNA interference therapies is now starting to look undervalued with RSI of 29.48 and today’s significant decline seems sector-wide, which may mean that the stock may well recover slightly in the near term. It is still a risky buying opportunity, but one that may be worth it over the medium term.
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