Shares of Complete Genomics (NASDAQ: GNOM) rocketed Thursday on heavy volume. The move today appeared to be in sympathy with Rosetta Genomics (NASDAQ: ROSG), an Israeli molecular diagnostics company. Rosetta Genomics stock climbed nearly 45% today and almost 1000% over the last eight days.
Complete Genomics finished the session at $2.33 or 26% higher than yesterday’s closing price. At one point during the day shares of Complete Genomics peaked at $2.59. Volume spiked along with the price as 8,100,000 shares traded hands. The number of shares traded was the most for the stock since February 13th when volume exploded to twenty-seven million.
Just a week ago Complete Genomics shares made a new fifty-two week low when it fell to $1.57. The low last week came on the heels of a first quarter earnings report released on May 7. Earnings disappointed with larger than expected losses and a forty-two percent decline in year over year revenues.
For the last year Complete Genomics shares have steadily declined from a high water mark of $18.55. In January the stock received a little relief from the downtrend when it popped from $2.45 to a top of $5.42 over a four-week period. The top of that move coincided with the highest volume day.
Complete Genomics develops DNA sequencing platforms for human genome analysis. Wild price swings are not unusual in high beta spaces like biotechnology. Investors often show some schizophrenic traits toward biotech stocks by fully embracing them one day and discarding them like a new toy a month after Christmas. Reaction of the stock price after news stories can be fast and furious.
The following are a sample of headlines associated with price swings for Complete Genomics:
- May 9 – Company involved in Type 2 Diabetes Study; stock moves 15% intraday.
- May 7- Complete Genomics releases first quarter results; stock closes down 40 cents
- Feb 13- Company wins an outsourcing contract with Mayo Clinic; stock roars from a previous day close of $3.29 to an intraday high of $5.42 the very next trading session.
The biotech space is also prone to merger and acquisition rumors. The rally in January coincided with Roche (OTC: RHHBY) bidding to buy out Illumina. The news brought other names like Complete Genomics to the forefront as potential takeover targets.
Over the last year the stock has made several attempts to bottom and set the stage for a prolonged rally. Today’s move might hold some promise because it occurred after two weeks of decline on the second best volume day in the last year. Prior to the big spike and opening gap in February the stock had been moving up for several weeks.
The action today also placed the stock against a few technical resistance points. But in the high beta world of biotechnology that seems to matter little. Was today the launch of a new trend is a question investors will ask in the days to come.