Financial Trading Blog
Stock of the day 27/11/2015 – GW Pharmaceuticals PLC
Can it give investors the munchies with its full year figures next Thursday?
GW had touched the £7 mark for the first time in its history back at the end of June; however, that was soon to become a distant memory, with a decline that began in the middle of July failing to stop for any meaningful amount of time in the interim. From £7 the stock fell to £6.04 on the eve of its third quarter figures on the 6th August.
(Source: IT-Finance.com 27/11/2015)
Things got even worse from that point onwards; that set of results was greeted by a 9% drop in GW’s stock price, tumbling to a 4 month low of £5.50. The reason? A £32.3 million loss for the 9 months to the end of June, widening from the £14.9 million loss posted the year before; revenue also barely moved, investors unhappy with a £0.3 million increase to £22.9 million year-on-year.
The stock began to recover as August continued, only for the China-inspired mayhem of that month to keep it below the £6 mark. Things began to look up, however, on September 15, with GW Pharmaceuticals jumping 10% as the company posted positive results in a Phase 2 clinical trial of Cannabidiol for use on patients with schizophrenia.
Yet this peak couldn’t last, and after touching £6.50 the stock soon resumed its decline, culminating in an 8 month low of £3.97 by the end of October following issues with the use of its Sativex drug in easing the pain of patients with advanced cancer. Since then GW Pharmaceuticals has managed to post something of a mild recovery, sitting at a current trading price of £4.74 (IT-Finance.com, 27/11/2015).
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