Investors should take note of the 14% jump in the share price of Cascadian Therapeutics Inc (USA) (NASDAQ:CASC) yesterday on a traded volume of 2.01 million shares.
There was no announcement from the clinical stage, bio-pharmaceutical company to account for the move, and the stock closed the day at $1.59.
Cascadian develops novel oncology products to improve the lives and outcomes of cancer patients.
Last month the company reported numbers for its second quarter ended June 30. Net loss attributable to common shareholders for the quarter was $25.1 million. There were no revenues, but the company carried cash and cash equivalents of $80.9 million. It raised $43.2 million in a June 2016 financing. The company expects cash to be adequate for funding operations for another year.
It is currently progressing HER2CLIMB, a Phase 2 ONT-380 combination trial, which is enrolling patients with late-stage HER2+ metastatic breast cancer. Cascadian is also developing novel Chk1 cell cycle inhibitors.
Cascadian Therapeutics Inc (USA) (NASDAQ:CASC) looking technically bullish
A reference to Cascadian’s weekly chart shows that the stock has hammered out a base between February and early September. This base is in the form of a symmetrical triangle.
Over the past weeks, Cascadian has broken out of this base with a highly bullish three-white-soldier candlestick pattern, and is currently poised to decisively penetrate the 200-week SMA.
If that happens bears will rush to cover their sales and the price could swiftly move to $2.25, a nearly 40% gain from current levels.
In June the company offered 35 million shares at $0.80 each in a public offering. It also sold 17,250 shares of a Series D convertible preferred stock to BVF Partners, L.P., an entity consisting of existing stockholders and affiliates of a board member, at $800 per share. These are convertible into 17.25 million common shares at $0.80.
At current prices, investors in the June issue have nearly doubled their investment over a period of mere three months.
On current technical reckoning, as aforesaid, there still remains potential for more upside.