Another Landslide In Avalanche Biotech Inc.
em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Avalanche Biotech 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 beatdown that took place on June 16, when it swooned from $38.88 to $17.05) when results for AVA-101 trail results for Wet Age macular degeneration yielded mixed results.
Since Jult 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 Q2 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 and began the day at $11.64 and managed 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.
Today’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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