Aptose Biosciences To Go Through With Public Offering, What This Could Do for the Stock
On July 16th, Aptose or NASDAQ: APTO announced that they will have a public offering of 10.5 million shares at $5.25 per on July 20th.
What does this mean?
Basically, a company will sell shares of their own stock to raise capital in a public offering. This is usually something small-caps go through with if they are not making money or need more capital for operations. In APTO's case, they are running out of cash, and this isn't the first time they've done a public offering. Seeking Alpha mentions that approximately $55 million to be raised in the offering.
What is Aptose Biosciences?
ATPO is a clinical-stage biotech that works in the field of oncology, or treating tumors. Looking at the past 4 years, they have not made a profit like most biotechs because of the amount of spending each company has to undertake in their clinical-trial stages.
Their cash flow looks like the source of their problems. Financing cash flow left at $436,000 in March with all other areas negative except end cash position. The fact that the company is undergoing another public offer must mean that they still haven't gathered enough cash or need a lot more. $55 million should help pad expenses for their CG-806 and APTO-253 clinical trials next quarter or maybe further down the road.
What I think
Since the offering is at $5.25 per share, it's expected to see the price drop. However, there is something I looked at that could be a good sign for Aptose.
Almost 40% of the stock is owned by institutions, and Q2 saw a lot of increases of institutional stakes betting on this company. A good thing about institutional ownership is that it can limit price volatility since it's unlikely smart money will decide to buy up shares and dump it all the next quarter. $22 million bought by institutions also shows investor interest which could mean APTO is getting close to a clinical breakthrough. But that is pure speculation that I made so take that with a grain of salt.
The stock looks like it's just about oversold on the 14-Day RSI chart, and price dips under the 200 Day Moving Average after trading above it since November of last year. Patterns on the RSI show that the stock could be gearing for another swing to the upside. If APTO's RSI slides under 30, it could be something to consider buying. On Marketbeat, analysts give this stock a buy rating with an $11.40 Price Target the past two quarters.
Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.
Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.