Julie Lamb

About the Author Julie Lamb

Julie graduated with a Bachelor of Arts in English with a focus on creative writing from the University of Louisville.

Tuesday’s Market Insight: Neovasc Inc (US) (NVCN), Real Goods Solar, Inc. (RGSE), and Stone Energy Corporation (SGY)

Neovasc Inc (US) (NASDAQ:NVCN) shares are rising 60% after the medical device company provided a positive update on its Tiara mitral valve clinical program at the International Conference for Innovations in Cardiovascular Systems (ICI) meeting in Tel Aviv, Israel. Meanwhile, in the energy sector, as fate would have it, today is going less swimmingly for Real Goods Solar, Inc. (NASDAQ:RGSE), whose shares are on an 22% fall, as well as for Stone Energy Corporation (NYSE:SGY), with the stock taking a close to 8% stumble. What’s the cause for investor distress? Let’s delve a little deeper:

Neovasc Presents New Tiara Clinical Results – Investors Cheer

The news: Dr. Shmuel Banai presented NVCN’s Tiara transcatheter mitral valve clinical results at the ICI meeting in Israel today that met resounding cheers from investors, who have plenty of reason to remain encouraged.

For reference, Tiara is a novel transcatheter device designed to treat mitral regurgitation (MR), a condition that is often severe and can lead to heart failure and death.

The biotech firm’s CEO Alexei Marko notes, “Tiara’s unique shape and trigonal tab anchoring system enables the device to be securely implanted with reduced risk of projecting into the LVOT or potentially interfering with prosthetic aortic valves which are commonly present in this patient population.”

The results: Of the 22 patients treated thus far at medical centers in Canada, the U.S., and Europe, the technical success rate scored 86%. Moreover, in the past 8 patients treated more than a month ago, no 30-day mortality has been reported.

Verdict: Shares surge 90% on back of the solid clinical progress made. Meanwhile, it is anticipated that the TIARA II clinical trial’s data will be used to file for CE Mark approval for Tiara, i.e. European Union regulatory approval to commercialize a medical device.

Real Goods Solar Yields Negative Tidings with its Public Offering

The news: The solar company made waves upon announcing it has started a public offering of units consisting of its Class A common stock, par value $0.0001 per share (deemed the “Common Stock”) along with Series I Warrants to purchase shares of Common stock.

Also worthy of note, Roth Capital Partners will serve as exclusive placement agent in the offering on a “best efforts” basis.  Moreover, the offering is being conducted pursuant to a prospectus supplement and an accompanying prospectus filed as part of an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (“SEC”).

Why shares are plunging: A public offering translates to diluted investments for shareholders a.k.a. investors are not happy today.

Stone Energy Corporation: Production Restoration Dubious and Investors Lose Hope 

The news: The energy company revealed an operational update on its Amethyst well.

Some backstory: Recent reports have been circling around closed production from Stone’s Amethyst well as of late April this year, enabling a technical evaluation.

The bad omen: As SGY has admitted, “We can provide no assurance that we will be able to restore the Well’s production to previous levels, or at all. We also cannot ensure that a replacement or sidetrack well would be economic, or that we would have sufficient liquidity if significant capital is needed to restore the Well’s production.”

Consequence: Without guarantee of restoration for the well, investors have clear reason to feel uneasy as to SGY’s prospects. As such, shares have taken a dip today, landing Stone Energy as the third of our volatile stocks for scrutiny today.

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