Oversold Stock of the Day: Aprea Therapeutics (APRE)
Even with the stock market stumbling out of the gate in 2021, few companies are showing as oversold. One of the rare names is Aprea Therapeutics (APRE). The biotech company saw shares drop over 77 percent on a failed Phase III drug.
The failure of a cancer drug trial missed a big goal, but the massive drop in shares has created oversold conditions in shares. The stock last saw its relative strength index, or RSI, hit a level of 19. That’s well into oversold territory.
What’s more, shares have started to have some up days in recent sessions as traders have started to reevaluate the company. While a small biotech play is often dependent on a drug trial going well, the company now trades for about the valuation of the cash on its books. That cash gives the company the financial flexibility to continue working to find a drug that will pass Phase III testing.
- America’s Economy Could Be In For A Rude Awakening
If you’re worried about why stocks are surging while millions of Americans are out of work and commercial bankruptcies are skyrocketing, I strongly urge you to listen to this message.
Action to take: This could be a value investor’s dream, as the company has about $4.75 per share in cash, and currently trades for about $4.75. Any upside surprise from here could be explosive for investors or traders alike.
The company currently has no options trades. Traders who buy now should look for the RSI to get closer to a neutral reading of 50 before taking profits.