Kyle Dennis of Biotech Breakouts.com made a nice 25 percent profit on Medicinova (MNOV) and was looking at trading the stock again on a catalyst event coming up on Oct. 28, but the company filed an S-3 with the Securities and Exchange Commission, a signal that the company is looking to raise money, which will dilute the share price. Dennis said that the potential for dilution negates the catalyst, taking the stock off his watch list. Ironically, he noted that the stock might go back on the list if it gaps down after any sort of dilution resulting from the S-3 filing.
Kyle Dennis is an events-based trader who runs Kyle Dennis’ Biotech Breakouts (biotechbreakouts.com). He had no shares, options or open orders in MNOV when he recorded this interview on Thursday, Oct. 5, and was not planning to change that. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.