Are These Stocks Undervalued? Cytosorbents Corp (CTSO) and Magellan Petroleum Corporation (MPET)
New York, NY – GDP INSIDER – 04/06/2015.
This article discusses two companies: Cytosorbents Corp (NASDAQ:CTSO) and Magellan Petroleum Corporation (NASDAQ:MPET)
Cytosorbents Corp (NASDAQ:CTSO) continued its recent strong decline on Thursday with the stock losing another 14.52% or $1.31 to close at $7.71 on very active trading of 1.898 million shares, compared to its three month average trading volume of 0.267 million shares. The development stage company focused on using blood purification procedures to treat life threatening diseases began to fall after it issued a warning on Tuesday, that its sales in the first quarter of this year may be as much as 45% lower. The warning comes after the company removed a significant portion of its sales staff in an effort to employ people who are better equipped to sell its therapy treatments. The announcement did point to potentially higher gains in the second half of the year, but without a solid track record for the new sales staff there is no guarantee. Even so, with RSI at 27.22 the stock looks undervalued and is potentially, a very lucrative buy.
Magellan Petroleum Corporation (NASDAQ:MPET) plunged on Thursday with the stock dropping to a 52 week low of $0.25, before recovering slightly to close 35.48% or $0.16 down at $0.2910 with more than 1.721 million shares changing hands, compared to its three month average trading volume of 0.112 million. The independent energy company focused on the development of crude oil and natural gas started to fall on no major news, but it has been the subject of a significant amount of negative evaluations by well respected Wall Street analysts during the week, which may have put downward pressure on the stock. With falling quarterly revenue growth of -22.50% year on year and diluted ESP of $0.38, the stock does not look strong, but after this drop it now has RSI of 12.92 which would indicate that it should bounce quite strongly without further bad news. Worth a short term speculative buy.
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