Another Landslide In Avalanche Biotech
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Avalanche Biotechnologies Inc (NASDAQ: AAVL) shares are trading sharply lower by $3.86 at $9.97 in Friday's session. After the close on Thursday, the company reported a narrower than expected Q2 loss ($0.38) vs. Est. ($0.39) but revenues came in lower ($279K vs. Est. $760K).
The decline is almost as significant as the beat-down that took place on June 16, when results for AVA-101's trial results yielded mixed results.
Since July 1, the issue has been in a $13.75 to $16.90 trading range with much of the trading action taking place around the $15 level. However, one day ahead of the second quarter it settled just above the bottom of the range, as nervous shareholders exited the issue ahead of the release.
And for good reason. Immediately following the release, it plunged to $11, but managed to limp back with a brief pop to $12.25 before resuming its decline. So far, it has reached $9.36 and is attempting to climb back and stay in the $10 handle.
Friday's route is taking place on much heavier than average volume. With one hour remaining in the day, it has traded 5.9M shares compared with its 20 day average of 642K.
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