Small Cap Stocks Watchlist: For April 26, 2017

The markets are relatively flat ahead of the open, but there are some stocks moving during the premarket. Here’s the small cap stocks watchlist for April 26, 2017.

Akebia Therapeutics Inc (NASDAQ: AKBA) shares were up over 25% during the pre-market, after the company and Otsuka Pharmaceutical announced they’ve expanded their collaboration in order to develop and commercialize Vadadustat in Europe, China and other territories. Some key highlights of this agreement include:

  • Akebia will receive $208M, or more, in committed capital from Otsuka.
  • AKBA is eligible to receive up to $657M in milestone payments, which would be a total transaction value of approximately $865M.
  • Otsuka would make tiered, double-digit royalty payments of up to 30% on net sales of the oral hypoxia-inducible factor (HIF) stabilizer, which is currently in Phase III development, in Otsuka’s territory.

Here’s a look at AKBA after it announced this collaboration, in the after hours yesterday, and during the premarket today:

Source: Google Finance

Ocwen Financial Corp (NYSE: OCN) was up over 7% after the company announced that the filing of two related motions that seek an early court ruling stating that the Consumer Financial Protection Bureau is unconstitutional. Now, Ocwen Financial noted that it believes the CFPB is unconstitutionally structured due to the fact that the bureau places too much unbalanced power in the Director and the CFPB itself, and there is no meaningful oversight by the U.S. Congress or the U.S. President.

If you recall, last week the CFPB filed a lawsuit against OCN, regarding its mortgage servicing errors, which sent shares down significantly. However, a panel of three judges on the D.C. Circuit Court of Appeals recently found that the CFPB is unconstitutionally structured. The findings are now being reviewed by the entire D.C. Circuit Court of Appeals.

Here’s a look at OCN on the daily chart, prior to the release of the news:

Source: TradingView

Deckers Outdoor Corp (NYSE: DECK) shares were up over 5% today, after the company announced that it was reviewing its strategic alternatives. Now, the company’s review process includes evaluating and exploring strategic alternatives, which might include a sale or another corporation transaction.

According to Dave Powers, President and Chief Executive Officer of Deckers, “We have made significant progress in streamlining our cost structure, optimizing our retail store fleet, and realigning our brands, with the goal of improving profitability…The management team continues to remain focused on driving improvements in the business through our recently announced $150 million savings program. We are also continuing to explore additional margin enhancing opportunities and plan to further articulate more details on our upcoming year-end earnings call on May 25, 2017.”

Look at DECK on during the premarket, notice how the stock is trading around $62 on the one minute chart below:

Source: TradingView

MediciNova Inc (NASDAQ: MNOV) shares were up over 20%, after the company presented exploratory interim data from its clinical trial of MN-166 in ALS, at the American Academy of Neurology, yesterday.

The data indicated there was a significantly higher survival rate in the group of subjects who completed the entire treatment than those who withdrew from the trial before the open label period. The exploratory interim analysis also indicated:

  • There were significant decreases in muscle strength, two weeks after stopping MN-166, and most of the results were statistically significant.
  • Lower-motor-neuron ALS burden significantly deteriorated in Limb-onset subject, but no significant change was found in Bulbar-onset subjects, when compared at baseline and the 12th month.

Here’s a look at MNOV on the daily chart, prior to the release of these results:

Source: TradingView

iRobot Corp (NASDAQ: IRBT) shares were up after the company reported its first quarter 2017 financial results. Here are the financial results that the company noted:

  • “Revenue for the first quarter of 2017 was $168.5 million, compared with $130.8 million for the first quarter of 2016. Q1 2016 included $3.0 million of revenue from the Defense & Security business divested at the beginning of Q2 2016.
  • Net income for the first quarter of 2017 was $16.4 million, compared with net income of $3.9 million for the first quarter of 2016.
  • Quarterly earnings per share were $0.58, compared with earnings per share of $0.13 in the first quarter of 2016. The divestiture of the Defense & Security business negatively impacted Q1 2016 earnings per share by ($0.12). In addition, in Q1 2017, we adopted the new accounting standard related to stock compensation expense. As a result, we recorded a $0.06 discrete tax benefit.
  • Adjusted EBITDA for the first quarter of 2017 was $30.2 million, compared with $14.1 million in the first quarter of 2016.”

Source: SEC Edgar

Here’s a look at IRBT on the daily chart, before its earnings release:

Source: TradingView


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