Immunomedics Not Looking Good
At This Stage!

"Cut-to-the-Chase Members” Make Potential Profit Of 80.5%And More Is Likely! 

As Well, Another Options Trade Included!

by Ian Harvey

November 28, 2018

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GETTING OUT WHILST THE GOING IS GOOD!

GREED CAN BE THE UNDOING OF A GOOD PROFIT!

Immunomedics, Inc. (NASDAQ: IMMU)

Immunomedics stock price fell as low as $16.80 yesterday and closed the day down 2.46%. This was great for Cut-to-the-Chase Members”, sitting on a put option, realizing a potential profit of 80.5% at this stage! The original recommendation was based on an operating loss increase as well as negative earnings report.

PATIENCE PAYS OFF!

YOU NEED TO BE IN TO PROFIT!

The Trade……

…….from……“Cut-to-the-Chase” Recommendations for the Week Beginning November 12, 2018

The Details Presented Previously……..

Immunomedics, Inc. (NASDAQ: IMMU), a pre-commercial business, shares fell more than 10% after releasing earnings recently.

Immunomedics stock has risen over 100% in the last year on the heels of promising data from clinical trials investigating sacituzumab govitecan as a potential treatment for various solid tumors. The company filed a biologics license application (BLA) with the U.S. Food and Drug Administration (FDA) seeking regulatory approval for the drug as a treatment in metastatic triple-negative breast cancer (mTNBC). The application was accepted months ago, and now investors are simply waiting for a regulatory decision on Jan. 18, 2019 -- hoping for approval.

However, the business racked up an operating loss of $57.1 million in the most recent quarter. That compares to an operating loss of $21.6 million in the year-ago period, although nearly all of the difference can be explained by an increase in research and development (R&D) spending for the company's maturing pipeline and preparation for the potential approval and market launch of its first product.

As well, Immunomedics came out with a quarterly loss of $0.35 per share versus the Consensus Estimate of a loss of $0.28. This compares to loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -25%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.20 per share when it actually produced a loss of $0.34, delivering a surprise of -70%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.....

…..continue reading…..

The Previous Recommended Trade……..

** OPTION TRADE: Buy IMMU FEB 15 2019 15.000 PUT at approximately $1.75.

The Result So Far………

Shares of Immunomedics fell nearly 11% today after the company reported fiscal first-quarter 2019 operating results. Immunomedics is a pre-commercial business, so there's not much for investors to peer into except, perhaps, the magnitude of operating losses accrued as the company attempts to transition to a commercial-stage entity.

On that note, the business racked up an operating loss of $57.1 million in the most recent quarter. That compares to an operating loss of $21.6 million in the year-ago period, although nearly all of the difference can be explained by an increase in research and development (R&D) spending for the company's maturing pipeline and preparation for the potential approval and market launch of its first product.

And since then has moved with the overall market movement, up and down, but now experiencing more down then up.

The Profits.....

So, for “Cut-to-the-Chase” members, who managed to execute this trade recommended by Stock Options Made Easy; potential profits of 80.5% were available yesterday.

Entering the option trade at a cost of $1.75 or less; and the price of the option reached $3.16 yesterday; a profit of 80.5% was made in a couple of weeks. Therefore, one options contract would provide a profit of $141.00.

A NICE START TO THE WEEK!

Moving Forward…..

Immunomedics stock has risen over 100% in the last year on the heels of promising data from clinical trials investigating sacituzumab govitecan as a potential treatment for various solid tumors. The company filed a biologics license application (BLA) with the U.S. Food and Drug Administration (FDA) seeking regulatory approval for the drug as a treatment in metastatic triple-negative breast cancer (mTNBC). The application was accepted months ago, and now investors are simply waiting for a regulatory decision on Jan. 18, 2019 – and hoping for approval.

Therefore, swelling operating expenses are not surprising by any means given the circumstances.

Additionally, Immunomedics announced that it had expanded its current collaboration with AstraZeneca to include metastatic non-small cell lung cancer indications.

Immunomedics remains on track for receiving a regulatory decision for its first product in early January 2019, has continued to investigate the drug's use in additional clinical trials, and even signed a long-term manufacturing contract with Samsung Biologics in September that will see the company pay out $82 million in the next three years for key components of the final drug product.

With the market volatility continuing to cause the stock price to falter, as well as the increased nervousness of investors waiting for sacituzumab govitecan to be approved in January; it is likely that the stock will continue downwards for the short-term before reversing direction.

Also worth considering is that seven analysts have rated the stock with a buy rating and one has given a strong buy rating to the company; and that Immunomedics currently has an average rating of Buy and a consensus price target of $38.43.

This is where the following suggested options trade comes into play with the expectation that the approval for the drug will be successful!

Therefore a NEW Trade to consider……..

Option trade to consider: Buy the IMMU FEB 15 2019 20.000 CALL at approximately $3.00.

As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, and it is obvious that it did originally apply in this case; and during earnings season this strategy of predicting earnings has been very profitable.

Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Strategies to Consider……

"When To Exit A Trade Based On Earnings?"

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....

also....

"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program".....click here....


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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