Trius Therapeutics: New MSRA Treatment Could Bring Billions In Revenues
Scott Matusow | Mar 06, 2013 03:07AM ET
Lately, there is has been a lot of news about Multidrug-resistant organisms (MDROs), such as methicillin-resistant Staphylococcus aureus (MRSA), vancomycin-resistant enterococci (VRE), and Carbapenem-resistant enterobacteriaceae (CRC).
NBC news did a story engaged in an ATM offering at $8.80 a share back in December 2012. Since then, the stock hit a high of over $12 a share before falling back to where it trades today, around $8.80 a share. I wrote about Synta a few days before the offering when the stock price was around $7.80, giving an opinion that I believed the company made for a good catalyst trade at the time with four upcoming data releases.
The above are two cases of small tech biopharmas engaging in direct ATM offerings that had very positive results.
In just about every case of a direct ATM offering, the stock normally rises quite a bit. The kind of financing that can be negative on a stock is when a company engages in a private placement, with tons of warrants issued to "private investors." Often times these offerings tend to be toxic, so investors need to keep a close eye when and if companies they hold positions in engage in private placements.
An upwards continuation pattern is clearly showing up in the above chart with an up-trending accumulation and RSI. It looks to me like $6 is coming very soon.
With the company having an abundant supply of cash on hand and with the current issues in health care regarding MRSA's, I feel Trius has a good chance to see a double digit stock price this year.
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