Does These Stocks Have More Downside Risk? Celladon Corp (CLDN), Merge Healthcare Inc. (MRGE) and Virgin America Inc (VA)
New York, NY – GDP INSIDER – 04/28/2014.
This article discusses three companies: Celladon Corp (NASDAQ:CLDN), Merge Healthcare Inc. (NASDAQ:MRGE) and Virgin America Inc (NASDAQ:VA)
Celladon Corp (NASDAQ:CLDN) shares took a huge dive in yesterday’s trading session and hit a 52-week low. The company’s stock fell after it stated its heart failure drug Mydicar was a bust. The shares were down over 80% on the day. The negative news pulled down the whole biotech sector, gene therapy stocks in particular. On Sunday, Celladon announced that its gene therapy Mydicar failed to meet the endpoints of the Phase 2b trial. Management is evaluating other options to identify the best outcome for its shareholder value. Investors need to determine the company’s assets and new valuation.
Merge Healthcare Inc. (NASDAQ:MRGE) sold off on Monday by 15.6% and closed the day at $5.10 per share. The stock is up by 43% year-to-date, and the technical indicate that it may just be a correction after the rapid rise. Headed into Monday’s open, the RSI was close to 80 but fell to 49 after the decline in the stock. The selloff was triggered by a downgrade by Topeka Capital Markets Monday morning. It adjusted its rating to Hold from Buy. After the decline, the new share price represents a buying opportunity for investors looking to get into stock.
Virgin America Inc (NASDAQ:VA) stock declined in Monday’s trading session by 6.7% to $30.21. The action in the stock was triggered by an analyst’s downgrade from Buy to Sell. That represents a substantial shift in view on the underlying stock. The stock is down by 30% year to date, and the technical indicators do not offer further support for the stock. The MFI is 58 and the RSI is at 46. Both of those index values do not support a bounce in the near-term. That said, the MACD divergence does offer a little more support that the stock could move upward. However, it is not enough to warrant a postive outlook.
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