Hot Biotech Stock Gaining Ground; Posts Improved Q2 Results

Posted by on Aug 05, 2010 | No comment

Discovery Laboratories Inc. (NASDAQ: DSCO) ended its second quarter of 2010 with $23.3 million in cash and marketable securities. The company also obtained a new committed equity financing facility, which will allow the company to raise up to $35 million in additional capital. Discovery Laboratories provided guidance for the second half of the year. In the latter half, the company’s cash burn from operation is expected to be $12 million. The company’s cash burn from operation for the second quarter stood at $5.3 million.

The biotech company reported that it incurred a net loss of $6.3 million for the quarter ended June 30, 2010, compared to a net loss of $7.9 million, for the same time period of the year prior. In June, the company completed a public offering of common stock and warrants, resulting in gross proceeds of $10 million. Under this deal, 35.7 million shares of common stock were put on block.  It also included 17.9 million five year warrants and 17.9 million 9-months warrants. The company is being analyzed by broking firm Wedbush Morgan PG Life Sciences.

In its report covering lab reports from phase 2 clinical trial of its drug Surfaxin, the company said that the trial was a randomized multicenter, masked and placebo controlled estimation trial. The drug is being developed for treating Acute Respiratory Failure. The company claims that the trial proved that the treatment is generally safe and well tolerated. It also showed that the use of the drug reduced time on mechanical ventilation by approximately 10%. However, this finding was not statistically significant different.

Discovery Laboratories stock traded in the range of $0.17 and $1.69, during the last 52 weeks. The company’s market cap is $41.62 million. The stock’s beta is 1.30. The stock’s 50-day moving average is at $0.28, whereas its 200-day moving average stands at $0.55. The stock is currently trading below its 50-day and 200-day moving average. The stock’s resistance level is at $0.28 and its support level is at $0.24.

Want more? Check out the message board buzz for DSCO

See what newsletters are recommending this stock here

Get breaking news alerts on this stock:  http://thestockmarketwatch.com/

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Copyright Beacon Equity @ 2012