Traders Turn to Neovasc Inc. (NYSEMKT:NVCN)

Neovasc Inc. (NYSEMKT:NVCN)

In December Neovasc Inc. (NASDAQ:NVCN) closed a $75 million deal with biotech giant Boston Scientific Corporation (NYSE:BSX). In January Neovasc lost a court case that mandated it pay interest on monies due to CardiAQ as the result of a $91 million patent infringement lawsuit. Both the interest and judgment payments are on hold as Neovac’s appeal works its way through the court system. Neovasc is a specialty medical device company that develops products for the cardiovascular industry.

Today such news was cast aside by the market as shares of Neovasc Inc. (NASDAQ:NVCN) gained over 27%. NVCN shares closed Monday at $1.40 and hit a high of $1.88 before closing the regular session at $1.78. Volumes were heavy – over seven times the listed average daily volume. Today’s action was surprising. The Average True range for NVCN is $0.08 but today’s range was over $0.48 or 34% of the closing trade value.

Neovasc Inc. (NASDAQ:NVCN) has performed poorly as of late. Prior to today’s action, NVCN is down 64.1% for the year, and down 19% YTD. However it is up over 380% from its 52-week low of $0.37. As of this writing, NVCN has a Relative Strength Indicator value of over 75 which is getting close to overbought territory.

Neovasc Inc. (NASDAQ:NVCN) is followed by two analysts. One rates NVCN shares as a “Strong Buy” while the other rates the shares a “Hold”. Their consensus price target is $10.

Ticker Symbol NVCN
Last Price a/o 4:00 PM EST  $                      1.78
Average Volume                    993,350
Market Cap (mlns)  $                    93.61
Sales (mlns) $8.98
Shares Outstanding (mlns) 66.87
Share Float (mlns) 36.58
Shortable Yes
Optionable No
Inside Ownership 6.28%
Short Float 9.09%
Short Interest Ratio 3.35
Quarterly Return -28.57%
YTD Return -19.08%
Year Return -64.10%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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