Cellectar Biosciences Inc (NASDAQ:CLRB) Plunges To A New Low

[[tagnumber 0]][[tagnumber 1]]Last week, Cellectar Biosciences Inc (NASDAQ:CLRB) hit a new 52–week low shortly after announcing a secondary public offering. As a result, CLRB shares are now some 40% cheaper and, judging from yesterday‘s volume, more volatile than ever.[[tagnumber 2]] [[tagnumber 0]]While pretty much each and every stock loses value as soon as a new secondary stock offering hits the headlines, repairing the damage is fairly difficult in the immediate term. All Cellectar‘s managers can do in this case is collect the proceeds, use them wisely, and hope that the effort will bear fruit sooner rather than later. In the best–case scenario, investors‘ trust will be regained and so will the stock‘s intrinsic value. As mentioned in a press release announcing the successful conclusion of the offering yesterday, the net proceeds of $7.2 million should allow the company to successfully continue its operating plan including its phase I clinical study of CLR 131 in multiple myeloma among other things. So far, so good, or so it seems.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]Looking at CLRB‘s 12–month chart, it is hard not to notice the distinctive downtrend which has been plaguing the company since last July. This appears to be the sole reason why Cellectar‘s management executed a 1–for–10 reverse split last month and explains why the stock is now worth about $2.10 per share instead of $0.21 per share. In addition, the reverse split might have also been necessary to keep the stock compliant with the Nasdaq listing requirements.[[tagnumber 2]] [[tagnumber 0]]Less than an hour into today‘s session, Cellectar has already headed for a new 52–week low at $1.91 per share.[[tagnumber 2]] [[tagnumber 0]]With no significant material events in sight, the company may have trouble rebounding on the charts – there have been no insider purchases for the last 12 months and the number of shorters is fairly small, too. Achieving a corporate milestone using the proceeds from the public offering will certainly re–awaken investors‘ interest and could at least delay, if not completely eliminate, the need for yet another reverse split in due course.[[tagnumber 2]]