by Ian Harvey
November 29, 2019
Clovis Oncology continues to make new highs on solid volume due to upgrades, positive earnings estimate revisions, and ongoing M&A chatter.
“Stock Options Made Easy” “Mentorship Program” members are already up 100% potential profits.
See where to now for Clovis!
The biotech company Clovis has been on an upward trek (as mentioned in the recommendation last Monday) since it reported better-than-expected earnings in a release two weeks ago.
The company has seen four positive estimate revisions in the past few weeks, while its Consensus Estimate for the current quarter has also moved higher over the past few weeks, suggesting that more solid trading could be ahead for Clovis.
Another driving factor for Clovis Oncology has been the chatter regarding Merger and Acquisitions, particularly if the valuation is attractive.
“Stock Options Made Easy” “Mentorship Program” members had executed a trade on September 25, 2019, and are now enjoying a potential return of 100%; and more is on the horizon as Clovis Oncology keeps the momentum going.
On that day the shares of Clovis Oncology were trading at $9.31; and by Wednesday intra-day trading saw a high of $12.63; closing the day at $12.41 (+$1.49) up 134.64%.
The Recommended Trade on Clovis Oncology.....
"Biotech company Clovis Oncology Inc (NASDAQ: CLVS) has been on an upward trek since it reported better-than-expected earnings in a release two weeks ago. The stock closed right above lateral resistance, and the next target is the rising channel top near $9-9.25.
At the moment options on Clovis Oncology stock shows high levels of implied volatility, suggesting that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off.
The Earnings Report.....
Clovis Oncology incurred adjusted loss of $1.89 per share in the third quarter of 2019, narrower than the Consensus Estimate of a loss of $1.92 but wider than the year-ago loss of $1.71 per share. Adjusted loss excludes expense related to acquire in-process research and development, and a gain on extinguishment of debt. Including these items, the company had incurred a loss of $1.72 in this quarter.
Net revenues, entirely from Clovis’ only marketed drug, Rubraca, were up almost 65% year over year to $37.6 million in the quarter, beating the Consensus Estimate of $36.31 million. Sales were up 14% sequentially. The company had recorded total revenues of $22.8 million, entirely from Rubraca sales in the United States, in the year-ago quarter.
Clovis raised the lower end of its full-year guidance for product revenues. The company expects Rubraca to generate sales in the range of $141 million to $147 million, compared with the previously provided range of $137 million to $147 million. The Consensus Estimate stands at $141.46 million........read more.....”
** OPTION TRADE: Buy CLVS JAN 17 2020 8.000 CALLS at approximately $1.50. (NOTE: due to market movement members entered the trade at $2.35)
YOU NEED TO BE IN TO PROFIT!
Analysts’ Positive On Clovis Oncology Shares.....
Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $20.75.
Clovis Oncology shares have more than quadrupled since closing at $3.00 on Oct. 25.
CLVS has tumbled from more than $90 in mid-2017, but the further the company's valuation sinks, the more attractive it has become to a potential buyer.
Also, fundamental developments are more positive, especially as the company has substantially reduced its high cash burn rate this quarter and Rubraca generated robust data for castration-resistant prostate cancer with an associated BRCA1/2 mutation.
Join us today and see what future trades will be recommended!
The questions remain......Will Clovis Oncology shares Keep Moving Up?
What is the plan for members still holding options on Clovis Oncology?
Will we recommend another options trade on Clovis Oncology?
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!