Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MediciNova, Inc. (NASDAQ:MNOV) but similarly valued. These stocks are Sky-mobi Ltd (ADR) (NASDAQ:MOBI), Transition Therapeutics Inc (USA) (NASDAQ:TTHI), Westell Technologies Inc. (NASDAQ:WSTL), and CorMedix Inc. (NYSEMKT:CRMD). This group of stocks’ market valuations resemble MNOV’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 4.75 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. That figure was $2 million in MNOV’s case. Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is the most popular stock in this table. On the other hand CorMedix Inc. (NYSEMKT:CRMD) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks MediciNova, Inc. (NASDAQ:MNOV) has the same popularity as the least popular stock in the table, CRMD. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.