It looks like TGTX is entering the gap down. Would love to know your thoughts?
TGTX is a highly speculative biotech stock. They launched a new Multiple Sclerosis drug (Briumvi) this year, and it is best in show. However, the management team is not seeing the "conversion rate" (existing patients switching over to their drug) they expected. Although, they are capturing the new MS patients who doctors are prescribing. That means it is going to take a little longer than expected to ramp sales. They licensed their drug in Europe, and that has helped them expedite their growth.
At the recent conference call the company said they expect revenues to be around $35 million. That makes hate last three quarters of sales at $16 million, $25 million and next quarter $35 million and that is solid growth. They reported earnings of $0.73 last quarter, and will be profitable next year. The fundamentals look decent for a patient investor who is willing to sit on that stock for at least a year or two.
Technically, it is trying to emerge for a stage one base. I like it above $11.40 and the gap you are referencing is $19.56 from July 31. I believe the risk.reward here is pretty good, and the probabilities they close that gap at $19.56 is likely. But, as I say we need to be patient and wait for more data points from management.