Liminal BioSciences Inc. LMNL

Motley Fool-Are These 3 Stocks About to Take Off?

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https://www.fool.ca/2017/10/17/are-these-3-stocks-about-to-take-off/

Investing in stocks that are falling in price can be dangerous, because it can be very hard to tell when the bottom has been reached. One way to get around this is to wait for a recovery in the price to make sure that the stock has at least found some support. I have compiled a list of three stocks below that have seen large declines this year, but in the past month they have seen rallies that could suggest that the worst is over.

ProMetic Life Sciences Inc. (TSX:PLI) has seen its share price decline 26% in 2017, but in the past month it has risen 13%; it could be on its way back up. The share price saw a couple large declines this year. The first happened in June when the company announced a bought deal, where it would issue additional shares at an average price of $1.70; at the time, the share price was trading at $2. The stock would go on close at $1.65 a day after the announcement. The next big drop would happen when the company announced its second-quarter results and a joint venture with a Chinese company to make its products available in the Chinese markets through a licensing agreement.

Towards the end of August, ProMetic received a Rare Pediatric Disease Designation from the Food and Drug Administration in the U.S. for its Ryplazima drug, which treats congenital plasminogen deficiency. That news sent the stock up 25% in one day and would ultimately lead it back up another 9%. The share price is still nowhere near its 52-week high of $3.24, but if the company can continue to get good news, the stock will continue its ascent.

David Jagielski | October 17, 2017 | More on:  PLI