Which Is The Right Choice? Cerulean Pharma Inc (CERU) and Capitol Acquisition Corp II (CLAC)
New York, NY – GDP INSIDER – 04/08/2015.
This article discusses two companies: Cerulean Pharma Inc (NASDAQ:CERU) and Capitol Acquisition Corp II (NASDAQ:CLAC)
Cerulean Pharma Inc (NASDAQ:CERU) continued its recent decline with the stock losing another 4.92% or $0.32 to close at $6.18 on heavy trading of 2.255 million shares, compared to its three month average trading volume of 0.052 million. The clinical stage biopharmaceutical company focused on the design and development of nanoparticles, has been declining since it announced its public offering of 5.840 million shares at $6.00 per share. The shares are being offered directly from Cerulean Pharma Inc and an additional 0.876 million can be purchased by the underwriter within 30 days. The proceeds are going to be used to increase the company’s working capital and could provide the boost the stock needs in the medium term. So far this year, the stock had been up over 60%, but its recent trend has pushed it to only 6.58% gain on the year. With RSI of 30.27, the stock looks ripe to bounce back when the offering is complete.
Capitol Acquisition Corp II (NASDAQ:CLAC) made further gains yesterday with the stock climbing an additional 10.73% or $1.10 to close at $11.35 with more than 2.605 million shares changing hands, compared to its three month average trading volume of 0.031 million. The merger, acquisition and share exchange specialist service provider has been creeping up for a while now. In fact the stock is now significantly outperforming the S&P 500, as the share price has gained 14.88% so far this year, compared to the S&P 500 which has only managed a modest 0.85% gain over the same period. With diluted EPS of -$0.16 and a current ratio of 0.14 the fundamentals are relatively weak, but the technical indicators tell a different story. The stock has a positively diverging MACD and RSI of 89.68 which could indicate that it is trading higher. However, with the data so conflicted it is a better sell than buy at this time.
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