NKTR
Intraday Fundamentals
• Nektar Therapeutics shares (NKTR) slid 6.3% in premarket trade Tuesday, after Goldman Sachs downgraded the stock to sell from buy and said the stock will likely flounder in the near term due to quality issues and a narrower focus for bempegaldesleukin, its treatment for cancer. Analysts led by Paul Choi slashed their stock price target to $16 from $54 . the stock has underperformed for the last 18 months, as execution missteps outweighed announcements of mostly positive clinical developments, said the analysts. "When we initiated coverage of NKTR on Dec. 13, 2018 , we expected additional data from the PIVOT-02 study of NKTR's bempegaldesleukin + BMY's Opdivo (potential treatment for a variety of advanced solid tumors) to help rebuild the investment case after investors grew bearish on the stock in the wake of deteriorating efficacy data presented at ASCO 2018 and a decreasing likelihood of industry M&A," the analysts wrote. "While the reported data since then has been somewhat encouraging, NKTR disclosed manufacturing discrepancies which resulted in suboptimal batches of bempeg being used in the PIVOT-02 and PROPEL clinical trials." The resulting investor uncertainty has pulled the stock down 60% from its Jan. 19 high and will likely remain an overhang, they wrote. Shares have fallen 42% in 2019, while the S&P 500 has gained 17%.
Technicals
ADV 3.58m RVOL .73 ATR 1.01 BETA 2.6 Short 15.74%
Daily
Hourly
Intraday
Trading Strategy
• This has been sold all year
• Play to the short side under VWAP, the closer to 18.50 you the better your chances
Reading the Tape
I was reading the tape. I could not tell if it looked like this would break apart as it hit new lows. A lot of the action seemed to cap around .80 on this.
Trade Management
Trade Review
• Good setup managed tightly looking for a breakdown of .56
• I to size to a little more reasonable risk or take the trade as the momentum after I was stopped slowed and gave me something to risk against. This may have allowed me to get bigger.
• This continue down after the break of the opening range. The trade needed a little more room to work
Trade Grade
Preparation- good.. I think this was my best idea of the day and I did not come at it with confidence.
Hard Work- I spent some time looking for spots to work a short.
Patience- yeah, this time I think a couple of more minutes may have helped get a better risk point.
Plan- yes, the partial and the target
Discipline- I failed here a bit. I did need to set risk above .80 and should hae sized down to make that happen.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-10-08 11:16:05 | NKTR | sell | $16.715 | short |
2019-10-08 11:17:15 | NKTR | buy | $16.780 | 0 |
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