Gediminas Jasionis

OXiGENE, Inc. (NASDAQ:OXGN) Downtrend Could Halt

by Gediminas Jasionis June 28, 2010
OXGN_chart.pngOXiGENE, Inc. (NASDAQ:OXGN, OXGN message board) stock performance is playing tricks, depicting the indecision of the market, but lacking conviction and support from the corporate side.

Those, guessing if the stock has bottomed out, can view the huge trading volume as very encouraging. However, most of the price action took place at mid-day with no conviction for continued appreciation towards the end of the trading on Friday.

It looks like only day-traders were able to use the short term price boost for quick profits. From a longer term perspective, the price is likely getting ready for a short consolidation period, as it happened twice in the past.

The short rebounce play came after the price hit a new 52-week low. It wouldn't be surprising to see it declining further, considering the financial situation of the company.

  • No revenues;
  • Increasing losses;
  • Cash on hand enough only for one more quarter;
  • Constant need for additional funds, covered from stock sales and private investments;
  • Only one drug in phase III trial, still far away from hitting the market.

Oxigene_logo.jpgOn top of that, OXiGENE is threatened with the removal from Nasdaq. They are troubled by financial issues, as most of their potential drugs are yet to hit the most expensive phase III trials.

The latest update from the company, announced last Thursday, failed to impress traders. OXiGENE basically promised to reveal trial data of ZYBRESTAT only during the 14th International Thyroid Congress in Paris, which will take place in fall 2010.

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