Chart of the Day: Genvec (GNVC)

Today’s chart is yet another example of how when things go wrong at a one-trick pony company, shareholders suffer. The pony in question is GenVec (Nasdaq: GNVC) and yes, Virginia, it is a biotech. Late yesterday the company halted clinical trials of its major cancer-fighting drug, TNFerade, because studies were showing that the drug didn’t work much better than a placebo. This sent the stock tumbling from its recent $3.30 high to around 77 cents–over a 75% drop–prompting an analyst downgrade. Ouch!

In an article appearing today in The, Adam Feuerstein figures the company to now be worth about 30 cents mostly comprised of cash-on-hand. Strictly speaking, the company isn’t a one-trick pony as it does have a small pipeline of very early-stage vaccines, but today’s blow might just be Genvec’s death knell.

Note: Major support levels are at $0.70 and $0.40.

GNVC Chart

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