Should You Drop Merrimack Pharmaceuticals Inc. (NASDAQ:MACK)?

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Merrimack Pharmaceuticals Inc. (NASDAQ:MACK) has reported EPS of $(0.23) for its last quarter. For the ongoing quarter, market analysts are anticipating EPS to come to $-0.07.

To generate the revenue, Merrimack Pharmaceuticals Inc. recorded direct expenses amounting to $1.18M, being the cost of sales. After subtracting the same, the firm closed with gross profit of $(1.18M).

Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK) today announced the resignation of Dr. Yasir Al-Wakeel as Chief Financial Officer and Head of Corporate Development, effective June 9, 2017. Dr. Al-Wakeel, who has been in his role with Merrimack since August 2015, is leaving to pursue other business interests. Merrimack has initiated a search to appoint a new chief financial officer.

Let?s look into the technical of the stock

The Barchart Technical Opinion rating is a 56% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators mostly agree with the trend. The market is approaching oversold territory. Be watchful of a trend reversal.

Because, company incurred other costs in the course of its businesses, deducting from the gross profit and dividing the variance by the number of shares due yielded the recorded revenue of $(0.23). Investors should bear in mind that Merrimack Pharmaceuticals Inc. closed the last quarter with diluted shares due amounting to 130.59M.

What is Merrimack Pharmaceuticals Inc.’s liquidity position and can it continue funding its businesses? The firm closed the previous quarter with cash balance of 17.26M%, having posted free cash flow of $(10.45M) during the last quarter. Net cash flow from businesses during the quarter was $(10.16M), resulting in net change in cash of $(4.37M).

What about the performance of the firm’s balance sheet? Merrimack Pharmaceuticals Inc. had total assets of $68.64M at the end of the recent quarter, whereas total liabilities amounted to $345.78M.

As for the Wall Street sentiment pertaining the stock, some 4 analysts have remarked on Merrimack Pharmaceuticals Inc. so far, giving it an average recommendation of Hold. Investors should understand that a call of 1 up to 1.24 implies the stock is a BUY, whereas recommendation of 2.75 up to 3.00 implies a stock is a SELL.

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