$OCEA Undervalued Stocks Ready To Bounce
Ano stranger to parabolic runs, Ocean Biomedical, Inc. (NASDAQ: OCEA) could be set up for another one soon with the stock cooling down from its most recent 136% run on news of being awarded a patent for a novel cancer immunotherapy treatment. While the stock recently had a 25% spike on being included in the Russell 2000 Index, OCEA stock has cooled down and is trading near support. With this in mind, the company recently entered into a convertible note facility where the notes have a conversion price of double OCEA’s current PPS. In light of this, OCEA stock could be one of the undervalued stocks to watch closely over the coming weeks.
OCEA Fundamentals
OCEA stock seems to be a runner by almost every metric, the stock has a float of only 3.3 million which allows it to run quickly on news. That was apparent in the multiple runs OCEA stock has made in the last month. Earlier this week OCEA announced a new patent award for its novel cancer immunotherapy treatment which has been shown to suppress primary and metastatic tumor growth in multiple animal models and has potential use in multiple forms of visceral cancers. After this news, OCEA stock jumped more than 136% before settling again.
A few days later, OCEA announced its addition to the Russell 2000 Index, and to no one’s surprise, OCEA stock ran more than 25% again. After the drop from the huge runs OCEA stock has seen the stock may be due to a reversal soon.
The reason a reversal could be soon is the company’s recent $25 million convertible note facility with Alto Opportunity Master Fund SPC where the notes have a conversion price of $10.34 per share which is more than double OCEA’s price at the time of the deal. This funding comes at a crucial time for OCEA since the company only had $306 thousand in cash on hand in its Q1 earnings report.
At the same time, this deal shows that OCEA could be one of the most undervalued stocks since Alto agreed to a conversion price much higher than the stock’s current PPS. In this way, OCEA stock could be worth more than the $10.34 conversion price – making it one of the undervalued stocks worth watching over the coming weeks as the company could announce major news that would send the stock soaring.
OCEA Financials
In its Q1 2023 report, OCEA’s assets decreased by 83% QoQ from $1.8 million to $0.306 million, and its cash and cash equivalents increased by 900% QoQ from $34 thousand to $306 thousand. OCEA’s total liabilities increased by almost 85% QoQ from $12 million to $23 million.
Operating losses slightly increased by 2.2% YoY from $5.1 million to $5.2 million, including an 88% QoQ decline in research expenses from $3.2 million to $0.393 million, which amounted to a net loss of $67 million – a 1200% increase YoY.
Technical Analysis
OCEA stock’s trend is neutral with the stock trading in a sideways channel between $5 and $5.9. Looking at the indicators, the stock is trading below the 200, 50, and 21 MAs which are bearish indications. However, the MACD is approaching a bullish crossover and the RSI is neutral at 43.
As for the fundamentals, OCEA stock just witnessed two catalysts in its addition to the Russell 2000 Index and its new patent award for its novel cancer immunotherapy treatment. With the stock cooling down from its run and trading near support, it could be well-positioned to rebound from this level soon.
OCEA Forecast
OCEA stock is shaping up to be a serial runner, with its low float the stock already ran multiple times this year be it on new research news or on other events like the stock addition to the Russell 2000 Index. The $25 million convertible note deal provides an argument that OCEA stock may be undervalued with the deal’s conversion price being almost double its trading price at the time of the deal. OCEA stock is certainly one of the undervalued stocks to keep an eye on.
OCEA Fundamentals
OCEA stock seems to be a runner by almost every metric, the stock has a float of only 3.3 million which allows it to run quickly on news. That was apparent in the multiple runs OCEA stock has made in the last month. Earlier this week OCEA announced a new patent award for its novel cancer immunotherapy treatment which has been shown to suppress primary and metastatic tumor growth in multiple animal models and has potential use in multiple forms of visceral cancers. After this news, OCEA stock jumped more than 136% before settling again.
A few days later, OCEA announced its addition to the Russell 2000 Index, and to no one’s surprise, OCEA stock ran more than 25% again. After the drop from the huge runs OCEA stock has seen the stock may be due to a reversal soon.
The reason a reversal could be soon is the company’s recent $25 million convertible note facility with Alto Opportunity Master Fund SPC where the notes have a conversion price of $10.34 per share which is more than double OCEA’s price at the time of the deal. This funding comes at a crucial time for OCEA since the company only had $306 thousand in cash on hand in its Q1 earnings report.
At the same time, this deal shows that OCEA could be one of the most undervalued stocks since Alto agreed to a conversion price much higher than the stock’s current PPS. In this way, OCEA stock could be worth more than the $10.34 conversion price – making it one of the undervalued stocks worth watching over the coming weeks as the company could announce major news that would send the stock soaring.
OCEA Financials
In its Q1 2023 report, OCEA’s assets decreased by 83% QoQ from $1.8 million to $0.306 million, and its cash and cash equivalents increased by 900% QoQ from $34 thousand to $306 thousand. OCEA’s total liabilities increased by almost 85% QoQ from $12 million to $23 million.
Operating losses slightly increased by 2.2% YoY from $5.1 million to $5.2 million, including an 88% QoQ decline in research expenses from $3.2 million to $0.393 million, which amounted to a net loss of $67 million – a 1200% increase YoY.
Technical Analysis
OCEA stock’s trend is neutral with the stock trading in a sideways channel between $5 and $5.9. Looking at the indicators, the stock is trading below the 200, 50, and 21 MAs which are bearish indications. However, the MACD is approaching a bullish crossover and the RSI is neutral at 43.
As for the fundamentals, OCEA stock just witnessed two catalysts in its addition to the Russell 2000 Index and its new patent award for its novel cancer immunotherapy treatment. With the stock cooling down from its run and trading near support, it could be well-positioned to rebound from this level soon.
OCEA Forecast
OCEA stock is shaping up to be a serial runner, with its low float the stock already ran multiple times this year be it on new research news or on other events like the stock addition to the Russell 2000 Index. The $25 million convertible note deal provides an argument that OCEA stock may be undervalued with the deal’s conversion price being almost double its trading price at the time of the deal. OCEA stock is certainly one of the undervalued stocks to keep an eye on.
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