Hey TCG, what do you think of RNVS?

[optimus25]

Hi TCG. I'd been trading RNVS in the teens at a 1-3 dollar trading range. At current prices, what do you think of a bounce? I figure that the failure of their stroke drug caused institutionals to sell but its looking really oversold to me.

[tigerlam92]

Yup. I'm keeping a very close eye on this company, both for a short term play and more for a long term investment.

I actually know of many of the people there and also Corey Goodman. They are a solid company with good upper management and very good scientist. Unfortunately, now they don't have anything in clinical trials. The other aspect I don't like is that, in the last five years or so, there is NO insider purchase of their own stock!

I'm thinking it will drop to about 3 and get support there. That is where I was thinking about coming in and hold for the long haul. But I'm still sipping my tea as of the moment.

Cheers

[Thierry Martin]

472

[mlegha1]

Why the fall from grace 2 weeks ago though?

[bahroor]

this stock re-defines the term.. "oversold"

[ub3rn00ber]

The drug didnt work so the pipeline got crushed

[OptionPundit]

Why the fall from grace 2 weeks ago though?

The fall was due to the fact that its experimental stroke medicine licensed to AstraZeneca Plc (AZN.L: Quote, Profile, Research) failed to meet its goal in a late stage trial.

AstraZeneca also announced that it was discontinuing further development of the drug NXY-059, dealing a significant blow to Renovis which has no other products in clinical testing phases.

The so-called SAINT II study was designed to show a reduction in disability in patients following an acute ischemic stroke. In the event there was no statistically significant difference among patients given either NXY-059 or placebo.

The option volatility was in the range of 250%!!! that already indication something big was about to happen. It was on my radar screen to play backspread but didn't dare :) that's part-n-parcel of the game.

Before you commit any money on this...my 3 cents :) watch for any +signs first unless you wnat to tarde for few quick bucks by playng penny stocks..

[optimus25]

Hmmm. CEO and insiders had been selling this stock since the 20's.

http://moneycentral.msn.com/investor/invsub/insider/trans.asp?Symbol=US%3aRNVS

[OptionPundit]

Hmmm. CEO and insiders had been selling this stock since the 20's.

http://moneycentral.msn.com/investor/invsub/insider/trans.asp?Symbol=US%3aRNVS

"Insiders might sell their shares for many reasons, but they buy for only one: they think the price will rise"
- Peter Lynch

So if the insiders are selling, that doesn't mean things are bad..unless they are selling heavily. Net amount of selling was about $17Millions over a 1 year period for this company by insiders, including $3millions by c-level officers. so assume $600milion market cap befoire fall..that's about 3%...something fishy :)

[TheChartGuru]

http://stockcharts.com/h-sc/ui?s=rnvs&p=D&yr=0&mn=3&dy=0&id=p68775368844

I would throw some MAD MONEY at RNVS. Looks like it has found support around $3. The MACD is improving. It's a good risk/reward play. Just have a mental stop at the low of $3.02

The Guru has spoken

[tigerlam92]

Agree with TCG and Optionzone. It went up 5% today but couldn't buy at 3.05 when I was planning. I'll be picking some up tomorrow and holding for a while. Still sipping my tea on AVNR though.

Cheers

[ub3rn00ber]

I think im going to pick up my position tommorow.

[MoMoney4Me]

The drug didnt work so the pipeline got crushed

The fall was due to the fact that its experimental stroke medicine licensed to AstraZeneca Plc (AZN.L: Quote, Profile, Research) failed to meet its goal in a late stage trial.


Hmmm. CEO and insiders had been selling this stock since the 20's.

I would throw some MAD MONEY at RNVS. Looks like it has found support around $3. The MACD is improving. It's a good risk/reward play. Just have a mental stop at the low of $3.02


Pay close attention to the above. There's room for a quick trade, but nothing fundamentally right with the company now to hold it up on the bounce.

A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then the bounce was for technical or speculative reasons. If the stock remains steady, then the bounce is merely a correction to over-selling.

Don't get caught holding the bag, it won't be full of gold. It just might be the dead cat !

[TheChartGuru]

Pay close attention to the above. There's room for a quick trade, but nothing fundamentally right with the company now to hold it up on the bounce.

A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then the bounce was for technical or speculative reasons. If the stock remains steady, then the bounce is merely a correction to over-selling.

Don't get caught holding the bag, it won't be full of gold. It just might be the dead cat !

I agree with MO. Just play the bounce. Usually oversold stocks can bounce for a 10%+ gain, but timing is important. Once you make your profit, take the profit and run.

The Guru has spoken

[OptionPundit]

why not look for winners which can give you quick 10% vs playing with the losers. I am sure if you have been around long enough in the market, you know fall from grace sometimes leads to...as well. There are plenty of oppotunity to play to make quick buck..in fact, if pricepoint is one of the key consideration, why not look for quality stocks and play options...no I am not recommending to play options, rather sugesting to look for greener lands :)

[bahroor]

watch it here
http://stockcharts.com/h-sc/ui?s=rnvs&p=D&yr=0&mn=6&dy=0&id=p37704840641

[spanky]

So, is it time to punt on RNVS? It seems to be doing nothing but fading lately.

[mlegha1]

I think it is dead money for now, keep it on your radar as soon as some good volume comes jump in and ride it up.