FXA has caught a cold

Apr 14th, 2010 – 1 Comment

I think that the market has the story on FXA. It’s a stock that has enjoyed a nice run but investors are not convinced that it can maintain the sales increases that are seen to driven by one time events.


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afexa

FXA seems to have a good product, turned themselves around, and have
gotten their house in order.

Why isn’t the market appreciating that?

Al

Hi Al,

Afexa Life Sciences Inc. (FXA TSX) by any othername is still CV Technologies, the developer and marketer of Cold -FX. The stock has been in a sell off since the fall of 2005 and even though it got a pop from the lows of the fall of 2009 those gains seem to be in the rear view mirror.

The good news at FXA came in 2009, as the concerns regarding the H1N1 flu and positioning Cold-FX with the 2010 Vancouver Winter Olympic Games helped drive sales. Revenue  came in at $29.5M for Q1 2010 up 50% from the year earlier period and earnings per share were reported at $0.06 from $0.03 in 2009.FXA5The three year chart tells the tale of a stock that popped and has subsequently dropped as investors decided that all the good news was baked into this cake. The chart also paints a portrait of a stock that has been selling off for a longer period of time.

Below is a 10 year chart for FXA and as you can see it’s no oil painting!

fxa6The big double top at the historical highs of $4.00 were shouting for investors to get off the ride and book some profits.

The six month chart provides a view of the most recent action in the shares and the selling pressure that has come into the stock.fxa7

FXA has breached support on the 200 day moving average and thats a caution flag. There is support at $0.50 and it could catch a bounce from there but with volume coming  in below the three month average of 100,000 shares a day it could be more of dream than a possibility.

I think that the market has the story on FXA. Its a stock that has enjoyed a nice run but investors are not convinced that it can maintain the sales increases that are seen to be  driven by one time events.

Happy Capitalism!

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