Signal Genetics (SGNL) Stock | Spikes Higher On New Agreement


Signal Genetics, Inc.   (NASDAQ: SGNL)


Signal Genetics, Inc. (SGNL), a commercial stage molecular genetic diagnostic company yesterday announced that it signed a master service agreement with a major biopharmaceutical company.


Executive Comments

Signal Genetics, Inc. SVP of Commercial Strategy and Business Development comments:

“This partnership with a leading biopharmaceutical company reflects robust and growing interest in Signal’s proprietary platform of diagnostic services. With this agreement in place, our MyPRS is now being utilized in a total of six pharmaceutical clinical studies across the two partnerships captured this year. We believe the results of these studies will reinforce the power of MyPRS as the most clinically validated gene expression test across the array of drug classes being developed to treat multiple myeloma. We hope to build on these foundational partnerships using a two-pronged approach that includes both securing new industry partners and expanding existing relationships into additional clinical trials. We see pharmaceutical and biotechnology clinical trial services as a core value driver for Signal going forward as they provide opportunities to create additional revenue generation and bring awareness to the capabilities of our technology in managing patient care.”  24/7 Wall St.

SGNL Technical Analysis

SGNL gapped up in price yesterday to $1.84, up from the prior day’s close of $1.33, which is a 38% increase in price based on favorable news.  Taking a look at the daily chart, we can see the last time the stock traded above this price level was back on July 14th when the stock closed at $1.92. Taking a further look back, we can see the stock traded at $2.56 back on July 6th. Ever since that date, it has been on a downward trend reaching its 52 week lows of $1.28 on September 3rd. The stock does have a low float of 4.05 million shares and was trading on heavy volume yesterday of more than 19 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $2.22 meaning that it gave back $0.38 at the open equivalent to 17%. For trading purposes, my entry point would have been $1.90 looking for a run through $2.00. My stop loss would have been $1.80 fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Signal Genetics, Inc., a commercial stage molecular genetic diagnostic company, focuses on providing diagnostic services that assist physicians in decision making for the care of patients suffering from cancer. The company offers Myeloma Prognostic Risk Signature (MyPRS) test, a microarray-based gene expression profile assay to test the presence of various groups of genes that predict low or high level risk of early relapse in patients suffering from multiple myeloma. It also holds license to the intellectual property developed at Myeloma Institute for Research and Therapy in University of Arkansas for Medical Sciences. The company has a sponsored research agreement with Moffitt Cancer Center to validate the clinical utility of its MyPRS test in asymptomatic monoclonal gammopathies. Signal Genetics, Inc. was founded in 2010 and is headquartered in Carlsbad, California.  Yahoo Finance