Hedge Funds Are Wary Of These Three Collapsing Stocks

OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI)’s shares are also experiencing volatility today, losing as much as 26% in early trading before climbing higher and then going back down again to over 20% in the red. The negativity surrounding the stock is due to its just-released Phase 2 Rainer results for previously untreated metastatic pancreatic cancer. According to the biopharmaceutical firm, the addition of its drug apatorsen with ABRAXANE and gemcitabine to treat said condition was found to not have a survival benefit compared to treatment with only the latter two drugs. The firm is still studying apatorsen for treatment of lung, prostate and bladder cancers.

Hedge funds we follow owned over 9% of OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI)’s shares at the end of the second quarter. However, it should be said that the number of hedge funds with long positions in the stock among those we track declined by one to seven over the course of said period. Their total holdings also decreased by over 22% during the quarter, to just over $5.0 million, which is very significant considering the stock soared by 8.27% from in the second quarter. According to our data, Mark Lampert’s Biotechnology Value Fund / Bvf Inc held 1.02 million shares of the company at the end of June, down by 26% over the quarter.

The last company in our undesirable spotlight is Cemtrex Inc (NASDAQ:CETX), which saw its shares pared by as much as 20% before slightly rebounding to 14% down in afternoon trading. One will be best served, nonetheless, to notice that the stock has soared by a massive 351% since its market debut in late June. Today’s stumble appears counterintuitive, as the firm, which supplies emission monitoring of particulates equipment in the industrials field, said that it is seeing a surge in demand for the IS 2500 Multi Gas Analyzer equipment that it makes.

Based on the Insider Monkey database, no hedge funds we track has invested in Cemtrex Inc (NASDAQ:CETX) yet since its IPO. This may be partly due to the fact that the firm is a nano-cap firm and because it debuted towards the end of June. However, it could also be that Cemtrex simply did not manage to capture hedge funds’ attention, as other late-quarter IPO’s have been able to quickly garner a great deal of hedge fund support in the past.

Disclosure: None