Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Alliqua Biomedical Inc (ALQA) Plunged Today

Alliqua Biomedical Inc (NASDAQ:ALQA) shares have plunged by 31% after the company announced the pricing of an underwritten public offering of 9.375 million shares at $0.40 a piece. Rodman & Renshaw was the underwriter of the offering and Alliqua Biomedical Inc (NASDAQ:ALQA) intends to use the net proceeds for general corporate and working capital purposes, along with for paying its monthly obligations under the company’s credit agreement with Perceptive Credit Opportunities Fund. Given the nano-cap size of the Alliqua’s market cap, along with its rather small average dollar volume, raising over $3 million likely needed a big discount for investors to commit, and Alliqua shares fell today because of that dynamic.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

In terms of smart money sentiment, not many elite funds owned Alliqua Biomedical Inc (NASDAQ:ALQA) at the end of the fourth quarter. Of the 742 top institutions that we track, 4 owned shares of Alliqua Biomedical Inc (NASDAQ:ALQA) at the end of the fourth quarter, unchanged from that of the previous quarter. Joseph Edelman‘s Perceptive Advisors kept its stake the same at 1.9 million shares while Hal Mintz‘s Sabby Capital trimmed its stake by 17% to 1.1 million shares.

The Bottom Line

Alliqua Biomedical Inc (NASDAQ:ALQA) shares are down due to a secondary offering.

Follow Adynxx Inc. (NASDAQ:ADYX)
Trade (NASDAQ:ADYX) Now!


stocks, analysis, market, numbers, business, ticker, trade, money, price, investment, index, chart


DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.